Why has employee engagement collapsed?

Strategies for a Healthier Workplace

Workplace wellbeing is more than just a business buzzword; it’s an urgent priority. With rising burnout rates, mental health struggles, and record-low employee engagement, it’s clear that traditional workplace management methods are no longer effective.

I’ve seen this firsthand, both in leading teams and confronting my own mental health challenges. The good news? Change is possible—with the right strategies and mindset.

This article explores what’s driving these challenges, where organisations often go wrong, and how incorporating strategies to support and build self-esteem can transform workplace wellbeing for both employees and leaders.

The Decline in Employee Engagement and Wellbeing

Employee disengagement is no longer a trend; it’s a crisis. Recent data paints a troubling picture:

United Kingdom

• Only 10% of employees are engaged in their jobs in 2023, resulting in an annual cost to the economy of over £257 billion.
• Declining job satisfaction is prevalent; one in 10 employees lacks confidence in their leadership.
• High anxiety levels persist, with 23.4% of adults reporting significant stress between 2022–2023.

United States

• Employee engagement has dropped to its lowest level in a decade, with only 31% of employees feeling engaged in their work.
• Younger employees under 35 report the steepest drops in satisfaction.
• Overall, life satisfaction for U.S. employees has declined to just 34%, with only 34% considering themselves “thriving.”

The Business Impact of Poor Wellbeing

Low engagement and wellbeing levels don’t just harm individuals; they significantly impact organisations. Disengaged employees lead to reduced productivity, higher absenteeism, and turnover rates. Businesses cannot afford to ignore these issues, yet many wellness efforts fall short. Why? Because they fail to address the root causes of employee dissatisfaction.

Why Traditional Wellness Programs Fall Short

The rise of corporate wellness programs has not solved the problem. While the global wellness industry is valued at nearly $60 billion and is growing (expected to reach $130 billion by 2034), many initiatives focus on surface-level perks, such as mindfulness apps, fitness challenges, and in-office yoga.

These approaches, though well-meaning, often overlook systemic issues such as excessive workloads, poor leadership, and a lack of autonomy. Actual change requires deeper solutions.

11 Steps to Building Wellbeing at Work

To tackle the crisis in workplace wellbeing, organisations must go beyond superficial fixes. Creating an organisation focused on building self-esteem provides a robust bedrock for fostering a culture of meaningful support, resilience, and purpose:

1. Living Consciously

Encourage employees to stay present and aware of their thoughts, emotions, and goals. Create a culture where mindfulness is tied to enhancing real workplace challenges, such as discussing workloads openly and proactively addressing burnout.

Practical Steps

• Host regular one-on-ones where employees can reflect on their workload and goals.
• Provide tools for mindfulness and clarity, like journaling templates or team wellness moments.

2. Self-Acceptance

Recognising one’s strengths and limitations is critical to building confidence. I know from personal experience how vital it is to accept where you’re at mentally to begin creating positive change. Companies, too, can embed this practice.

How to Support

• Offer mental health resources, including access to therapists.
• Normalise honest conversations about mistakes, fostering a learning mindset.

3. Self-Responsibility

Employees thrive when they feel their work matters and they have control over their roles. Foster a culture where responsibility is balanced with the tools and trust needed for success.

Action Items

• Implement systems that allow employees to take ownership of projects and decisions.
• Provide clear objectives but trust teams to achieve them their way.

4. Self-Assertiveness

Creating a workplace that prioritises voice and contribution will empower employees to advocate for themselves effectively. Assertiveness is not aggression; it’s giving people the confidence to speak their truth without fear of backlash.

How to Build It

• Train leaders to encourage open dialogues and value diverse opinions.
• Establish anonymous feedback channels to ensure everyone is heard.

5. Living Purposefully

Nothing transforms wellbeing like finding purpose. Employers must connect roles to meaningful outcomes, helping employees see the impact of their work.

Practical Ideas

• Highlight how individual contributions align with the company's overarching goals during meetings.
• Reward creativity and progress with recognition programs.

6. Personal Integrity

Consistency between values and behaviour builds trust. When employees see integrity in leadership and their colleagues, they feel a sense of connection.

Embed Integrity

• Uphold consistent company values across all decisions, from hiring to daily work culture.
• Support employee development programs that align with both personal and business ethics.

7. Building a Culture of Psychological Safety

Psychological safety allows employees to express themselves without fear of judgment or retaliation. It encourages innovation, builds trust, and drives engagement.

• How:

• Encourage open feedback and dialogue without fear of punishment.

• Train leaders to create inclusive and empathetic environments.

• Celebrate team efforts, mistakes, and learning moments.

• Build a culture that celebrates success, rather than focusing on politics and hierarchy.

8. Giving Employees More Autonomy

Micromanagement undermines productivity and confidence. Employees thrive when they have control over their decisions and their day.

• Practical Steps:

• Implement flexible work hours and remote work options.

• Trust employees with decision-making and project ownership.

• Set clear objectives but allow them to determine their preferred path.

• Show some empathy. As Josh Graff, Head of LinkedIn UK, says, 'Try walking a mile in someone else's shoes' from time to time.

9. Fostering Resilience and Self-Leadership

Building resilience to stress empowers employees to take charge of their personal well-being and professional development.

• Action Plan:

• Provide resources for personal growth, such as access to leadership podcasts, online courses, or mentorship programs.

• Encourage self-care initiatives and prevent overwork.

10. Reshaping Work to Provide Meaning

Employees perform better when their work aligns with their values and feels purposeful.

‘If you find a why, then you can bear any how’

Victor Frankl's Man’s search for meaning’

• How to Add Meaning:

• Help employees see how their role contributes to broader business goals.

• Focus on recognition programs that celebrate results, effort, and creativity.

• Bring employees into decision-making processes to deepen their connection to the company.

11. Embedding Self-Compassion

Psychologist Kristin Neff’s research emphasises self-compassion as a foundation for well-being:

1. Self-Kindness - Encourage employees to treat themselves with the same care they show others.
2. Common Humanity - Help teams understand that mistakes and failures are universal.
3. Mindfulness - Create spaces for reflection, such as workplace mindfulness programs tied to real-life issues.

Mental Health Support: The Non-Negotiable

The mental health crisis in workplaces needs urgent attention. From the UK’s £257 billion lost in productivity to the U.S.’s rising depression rates, ignoring this issue costs more than implementing meaningful change.

Practical, Measurable Steps

• Offer employees dedicated mental health days.
• Provide access to peer support groups and therapy through company benefits.
• Train managers to recognise signs of burnout and respond compassionately.

From my own challenges with mental health at work, I’ve seen the power of patience—not just personally but also in team dynamics. There are no quick wins here. Real change takes time, but it is well worth the effort.

I do feel fortunate. Not everyone has had the growth opportunities that I have had. However, for over twenty years now, I have given considerable thought to my 'happiness action plan'. I have implemented it for many years now.

Productive, fulfilling work has always been one of my key goals, alongside good mental health, and strong relationships with my family and friends. I know from research that these are the key drivers of happiness.

However, based on my own journey and where I am today, I also have strong personal evidence that this approach is effective.

Like many professionals, I’ve faced challenges in the workplace. But over the years, I’ve developed strategies to live a happy and productive life while maintaining excellent mental health. 

My experience underscores that while the problem is complex, solutions are achievable. They require effort, support, and understanding on an individual and organisational level.

One of the first strategies I learned, over twenty years ago, was setting boundaries. It's crucial to create a balance between work and personal life, which can be challenging in today's fast-paced, technology-driven world.

Setting boundaries means being able to say "no" when necessary, delegating tasks, and taking breaks from work to recharge. This helps prevent burnout and allows for quality time with loved ones, as well as pursuing hobbies and interests outside of work.

Another important aspect is communication. Open and honest communication is essential in any relationship, including the one with your employer or colleagues. It's okay to express your concerns or ask for support when you need it. In fact, sharing your struggles openly together (without fear of reprisal) will help you find better solutions more quickly.

Turning the Crisis into an Opportunity

Addressing wellbeing is more than an ethical priority; it’s a way to build competitive advantage. Employees who feel valued, supported, and have a sense of purpose are more engaged, creative, and loyal.

I feel a profound sense of purpose in my career since I've found something I'm passionate about. Enjoying what you do and having a healthy support network are key to developing incredible resilience.

The wider mental health crisis

Over the past 10 to 15 years, mental health challenges have escalated significantly in both the UK and the US, affecting adults and young people alike.

United Kingdom 

• Youth Mental Health: From 2017 to 2022, probable mental disorders among 17 to 19-year-olds rose from 10.1% to 25.7%. CYPMHC

• Between April 2023 and March 2024, very urgent adult referrals to mental health crisis teams in England more than doubled, rising from 1,400 to 3,063 cases. This sharp increase reflects escalating mental health emergencies and highlights the strain on already overstretched services. The Guardian

• The Prince's Trust Youth Index reports that happiness and confidence levels among young people in the UK have reached their lowest levels since the survey's inception. In 2020, 26% of young people felt "unable to cope with life," a figure that rose to 40% among those not in employment, education, or training. 

• In 2023, England and Wales recorded 6,069 suicides, equating to 11.4 deaths per 100,000 people—the highest rate since 1999. Notably, male suicide rates increased to 17.4 per 100,000, and female rates reached 5.7 per 100,000, marking the highest female rate observed since 1994. Office for National Statistics

United States

• Depression Rates: The prevalence of past-year depression increased from 7.3% in 2015 to 9.2% in 2020. PMC

• Suicidal Thoughts in Young Adults: Between 2008 and 2017, the rate of young adults with suicidal thoughts or other suicide-related outcomes increased by 47%. American Psychological Association.

• Youth Mental Health Crisis: Between 2014 and 2024, the suicide rate for Americans aged 10–24 rose by 56%, with particularly sharp increases among Black youth and adolescent girls. Wikipedia.

     

Take Action Today

Whether you're a business leader, HR professional, or employee, there’s a role you can play in prioritising workplace wellbeing. Start by evaluating your company's mental wellbeing and that of its employees. What can you improve? What’s missing?

Above all, look at yourself. Are you happy? Are you working at your best potential? Are you in the right environment to produce your best work?

Creating a healthy workplace culture isn’t just good for employees; it’s essential for business success. Together, we can solve this crisis by making wellbeing a shared priority.

“A culture that systematically ignores, devalues, or frustrates the need for self-esteem will sooner or later pay the price in the form of apathy, absenteeism, poor performance, or burnout.”

Nathaniel Branden, 'Self-esteem at work'

Further reading: Jeremy Thomas 'How to stay sane in an insane world' - I am friends with Jeremy. I facilitated the refresh of his excellent new website with a brilliant designer with whom I've worked for many years, called Karlo Pocrnic.

Or visit my HR, Talent Acquisition, and Culture website.