2025 has already delivered some big changes and challenges for employers. From the ongoing debate about hybrid work to the role of AI in the workplace, developing corporate and social responsibility (CSR) efforts, and the arrival of Gen Alpha in the workplace. There is a vast amount for employers to think about. To stay ahead, companies must focus on bringing teams together and prioritise human connections.
Take a look into the key trends that are shaping employee engagement in 2025:
Empathy
People thrive when they feel understood and valued in the workplace. According to Forbes, 96% of workers believe empathy in leadership is crucial, but only half see their CEOs as empathetic. Employers should focus on training leaders in empathy techniques. They should provide them with tools that encourage regular recognition, whether through timely acknowledgments, milestone celebrations, or simply adopting an open and supportive workplace culture.
Get environmentally and socially conscious
Engagement is no longer just about job satisfaction. 61% of millennials consider a company’s environmental and social initiatives when choosing an employer, according to a Deloitte survey.
Companies need to align engagement initiatives with CSR, environmental and social governance (ESG), learning and development, and employee well-being. Supporting causes and values that resonate with workers and the organisation doesn’t just improve morale; it strengthens business outcomes because it fosters a culture where employees feel invested in the company’s success.
The integration of AI
AI is transforming how companies recognise and reward employees. According to The HR Priority Report, 49% of HR managers said the need to explore how AI can benefit HR had increased in priority. AI gives employers smarter and more personalised ways to encourage appreciation. From nudging managers to acknowledging contributions, to analysing sentiment in messages, AI can enhance workplace recognition while maintaining the human touch. The key lies in balancing AI-driven insights with authentic, personal appreciation to create a positive and connected work environment.
Recognition
Recognition and connection are ongoing challenges for remote and hybrid teams. According to Gartner, 81% of employers are struggling to effectively manage remote teams. Workers who feel disconnected from company culture are far more likely to disengage. This year, organisations need to double down on global recognition programs that align with company values, ensuring that the entire workforce regardless of their location, feels equally valued and included.
A multigenerational tailored approach
A report from the Work Foundation at Lancaster University found that 73% of business leaders in the UK have multiple generations in their workforce, including the first wave of Gen Alpha. Businesses must tailor their engagement and development programs to suit different needs and expectations. A multigenerational approach brings diverse perspectives and drives innovation, but employers must be aware that it requires tailored recognition and growth opportunities to attract and retain top talent.
Create a strong employee value proposition (EVP)
HR teams play a crucial role in driving strategic goals, and data will be their most valuable tool. A strong employee value proposition (EVP) helps retain top talent and motivates employees to do their best work. By tracking key metrics like retention rates, satisfaction scores, and employee net promoter scores (eNPS), businesses can continuously refine their engagement strategies to enhance both employee experience and profitability.
Support professional development
Continuous professional development will be essential as the digital skills gap persists this year.
Recognising employees for upskilling efforts can increase motivation and reinforce a culture of growth. Integrating rewards and recognition into training programs will encourage ongoing learning and ensure that employees feel supported in their career development.
Connection, purpose and growth
2025 is already looking to be a year full of transformation and growth, but one constant remains; encouraging connection, purpose and growth across a wide range of teams will be essential to successfully navigate workplace challenges.
About us
Magic Umbrella is committed to ensuring compliance, transparency, and best practices in everything we do. That’s why we’re proud to be an Approved Partner of Professional Passport. Found out more about us on the Professional Passport website here. TheMagic Umbrella Benefits Portal is an included (no charge) 24/7 access pass to a world of unparalleled benefits and support for workers and their families. It’s also the central portal to vital employment and pay documents, sending alerts when new payslips or documents are uploaded, and securely storing vital information, payslips and employment history in one place on the individual worker’s app. It also features savings and discounts at supermarkets and high street retailers, 24/7 GP access and access to hundreds of training, learning and development opportunities.
