Effective Ways to Improve Employee Engagement and Retention in 2025

In today’s rapidly evolving workplace landscape, employee engagement and retention have become critical pillars for organizational success. As companies compete to attract and retain top talent, understanding and implementing effective employee engagement strategies is no longer optional—it’s essential. In 2025, the stakes are higher, with employee expectations shifting towards meaningful work, flexibility, and a culture of recognition and growth.

Drawing on over 16 years of engineering leadership and experience scaling high-performing teams at Apple and startups alike, I share insights and actionable employee engagement and retention strategies to help organizations boost workforce productivity and satisfaction. This article is crafted for decision-makers and professionals looking to invest in products and solutions that enhance employee engagement and retention.

Employee engagement is the emotional commitment employees have towards their organization and its goals. Retention refers to the ability of a company to keep its employees over time. Both are deeply intertwined and directly impact productivity, innovation, and profitability.

Organizations with high employee engagement experience significantly lower turnover rates and higher profitability than their competitors. Disengaged employees cost companies billions annually in lost productivity and turnover costs. Flexible work arrangements, mental health support, and career development opportunities have emerged as top drivers of engagement and retention in 2025.

According to ADP’s research, workforce engagement in India has plummeted to 19% in 2025, highlighting the urgent need for innovative employee engagement strategies. This stark decline underscores why organizations must prioritize engagement and retention to maintain competitive advantage. You can explore the detailed findings in the ADP India Workforce Engagement Report.

In essence, engaged employees are more productive, innovative, and loyal, making employee engagement and retention strategies a strategic business imperative.

Understanding the current state of engagement and retention provides crucial context for why organizations must act decisively.

• Over half of employees are actively seeking new opportunities, signaling a workforce eager for meaningful engagement and growth, while a significant portion of turnover is preventable through better management and culture.

• Globally, only about one in four employees are actively engaged at work, with many disengaged or “quiet quitting” — doing the bare minimum.

• In the U.S., employee engagement has declined from a peak in recent years, largely due to reduced development opportunities and employees feeling undervalued.

• Teams with low engagement experience turnover rates substantially higher than highly engaged teams, costing organizations billions in lost productivity.

• Flexible work is a game-changer: a majority of employees would stay in a job they dislike if it offered flexible working hours.

• Leadership quality is pivotal; organizations with strong leadership see a significant increase in engagement levels.

These statistics highlight the urgent need for comprehensive, data-driven employee engagement strategies to improve retention.

1. Align Employee Goals with Organizational Objectives

When employees see a clear connection between their personal goals and the company’s mission, their performance and engagement increase significantly.

At Eubrics, we use AI-driven goal-setting tools that help employees set personalized objectives aligned with company priorities, fostering a sense of purpose and ownership. This alignment ensures that employees understand how their work contributes to the bigger picture, which is a powerful motivator.

If your organization is looking to identify and close workforce skill gaps as part of your engagement strategy, exploring skill gaps examples can help you target development areas that align with both employee and business goals.

2. Foster a Culture of Recognition and Appreciation

Recognition is one of the simplest yet most powerful ways to sustain engagement. Employees who receive regular recognition are much more likely to stay with their employer.

• Implement peer-to-peer, leader-to-employee, and company-wide recognition programs.

• Use points-based rewards that employees can redeem flexibly.

• Celebrate milestones publicly to reinforce positive behaviors.

Adobe’s “Check-In” program replaced annual reviews with frequent, informal recognition conversations, leading to higher employee satisfaction and retention. This approach humanizes performance management and keeps motivation high.

To make recognition more impactful, consider leveraging real-time feedback systems that allow for instant acknowledgment and continuous improvement.

3. Encourage Internal Mobility and Career Development

Employees value opportunities for growth within their organization. Companies introducing internal career programs have seen significant increases in employee engagement.

• Promote lateral moves, job shadowing, and cross-team projects.

• Offer personalized learning and mentorship programs as part of a comprehensive employee development program.

• Clearly communicate career paths and development opportunities.

LinkedIn’s focus on internal hiring and career development resulted in many employees staying longer, as they saw clear pathways for advancement within the company. The 2025 Workday Global Workforce Report found that companies offering internal mobility opportunities experience increased engagement and retention.

For organizations seeking to build robust growth paths, investing in a structured employee development program can make a measurable impact on both engagement and retention.

4. Embrace Flexible Work Arrangements

Flexibility in work hours and location has become a non-negotiable for many employees.

• Offer remote work options, flexible schedules, and compressed workweeks.

• Use technology to maintain seamless communication and collaboration.

• Support work-life balance to reduce burnout and improve job satisfaction.

Microsoft’s hybrid work model has led to increased employee productivity and retention by empowering employees to choose where and when they work best, demonstrating the power of flexibility. Gartner’s Future of Work Trends Report highlights that flexibility ranks as a top retention driver in 2025.

To further support productivity in flexible environments, organizations can benefit from exploring strategies to boost employee productivity across hybrid and remote teams.

5. Prioritize Employee Well-being and Mental Health

Mental health support is critical in 2025, with a large majority of workers reporting work-related stress. Wellness programs that address physical, emotional, and mental health boost engagement and reduce turnover.

• Provide access to counseling, mindfulness sessions, and health screenings.

• Promote a psychologically safe environment where employees feel heard.

• Integrate wellness into company culture with regular check-ins and resources.

Companies using integrated wellness platforms report significantly lower burnout-related turnover, underscoring the importance of holistic well-being initiatives.

6. Build Strong Communication and Feedback Loops

Open, transparent communication fosters trust and engagement. Employees who feel their voices are heard are much more likely to give their best effort.

• Conduct regular surveys and one-on-one meetings.

• Actively listen and respond to employee feedback.

• Use AI tools to analyze sentiment and identify engagement risks early.

At Eubrics, we leverage AI to provide managers with real-time insights into team morale, enabling proactive engagement interventions that keep teams motivated and connected.

For more on how to create a culture of ongoing improvement, see our guide on organizational development, which covers best practices for communication and change management.

7. Implement Comprehensive Onboarding and Mentorship Programs

A strong onboarding experience sets the tone for long-term engagement.

• Design onboarding that goes beyond paperwork to include cultural immersion and goal-setting.

• Pair new hires with experienced mentors for guidance and support.

• Continuously nurture these relationships to foster belonging and growth.

Employees with mentors are much more likely to be engaged, as mentorship fosters connection, learning, and career development. For sales teams, an effective sales rep onboarding program can accelerate ramp-up and long-term engagement.

Leadership quality is one of the most significant drivers of employee engagement. Organizations with strong, supportive leadership experience substantial increases in engagement levels.

Supportive leadership involves:

• Leaders who listen actively and communicate transparently.

• Managers trained to lead hybrid and remote teams effectively.

• Encouragement of autonomy and empowerment.

• Recognition of individual and team contributions.

• Commitment to employee development and well-being.

People often leave managers, not jobs. Investing in leadership development programs can reduce turnover and boost engagement simultaneously.

Gallup’s 2025 Workplace Report underscores that manager engagement is a key driver of employee retention and engagement, with declining manager engagement signaling risks for organizations. You can learn more about this in the Gallup 2025 Workplace Report.

During my tenure leading Strategic Data Solutions at Apple, a focus on transparent communication and leadership training helped maintain high engagement levels even during rapid scaling phases. To further develop your leaders, consider implementing leadership development programs tailored to your organization’s unique culture and needs.

In 2025, technology plays a pivotal role in understanding and improving employee engagement and retention.

• Predictive analytics tools can forecast turnover risks by analyzing resignation trends and employee sentiment.

• AI-powered feedback platforms collect and analyze real-time feedback to identify disengagement early and recommend tailored interventions.

• Digital recognition programs integrated into daily workflows increase the frequency and impact of employee appreciation.

• Learning management systems with personalized learning paths encourage continuous development, increasing engagement and reducing turnover.

At Eubrics, we use AI to provide managers with actionable insights on team performance and morale, enabling timely support and recognition that keeps employees motivated.

To ensure strategies are effective, organizations must rely on data and key performance indicators:

• Turnover rate: A direct indicator of retention health. Sudden spikes can signal cultural or management issues.

• Employee satisfaction and engagement scores: Regular surveys provide insights into workplace sentiment and engagement levels.

• Professional development participation: High rates indicate employees feel invested in their growth.

• Absenteeism and productivity metrics: Can reveal disengagement or burnout early.

Tracking these metrics allows companies to refine their employee engagement strategies and respond proactively to workforce needs.

Engagement and retention are ongoing commitments, not one-time initiatives. To build a sustainable culture:

• Prioritize continuous learning and development through a robust employee development program.

• Maintain open communication channels and feedback loops.

• Celebrate diversity and foster inclusivity to create a sense of belonging.

• Invest in employee well-being holistically.

• Leverage technology to personalize engagement efforts.

• Empower managers with leadership training.

This holistic approach creates resilient organizations where employees are motivated to contribute their best over the long term. If you’re considering a broader transformation, our article on HR transformation offers insights into aligning people, processes, and technology for lasting impact.

Adobe’s “Check-In” Program

Replacing annual reviews with frequent, informal check-ins allowed Adobe to increase employee satisfaction and retention. Employees felt more connected and recognized, which fostered a culture of continuous feedback and growth.

Microsoft’s Hybrid Work Model

By offering flexible hybrid work options, Microsoft improved productivity and retention. Employees appreciated the autonomy to choose their work environment, which reduced burnout and increased engagement.

LinkedIn’s Internal Mobility Focus

LinkedIn’s emphasis on internal hiring and career development resulted in a significant increase in employee retention. Employees saw clear pathways for growth, reducing turnover and boosting morale.

In 2025, improving employee engagement and retention requires a holistic, data-driven approach that combines meaningful work, recognition, career growth, flexibility, and well-being. Organizations that invest in these areas not only enhance employee satisfaction but also drive innovation, productivity, and profitability.

By leveraging AI-powered tools and fostering a culture of respect and recognition, companies can create workplaces where employees thrive and stay committed for the long haul.

What is the difference between employee engagement and retention?
Employee engagement refers to how emotionally committed employees are to their work and organization, while retention focuses on keeping employees employed over time. High engagement often leads to better retention.

How can technology help improve employee engagement?
AI and data analytics provide personalized insights, identify at-risk employees, facilitate communication, and automate recognition programs, making engagement efforts more effective and scalable.

Why is flexibility so important for retention in 2025?
Flexible work arrangements address employees’ need for work-life balance and autonomy, reducing burnout and increasing job satisfaction, which are key to retaining talent.

How does recognition impact employee performance?
Recognition boosts motivation, loyalty, and productivity. Employees who feel appreciated are more engaged and less likely to leave their jobs.

What role does mental health play in employee engagement?
Mental health support reduces stress and burnout, creating a healthier, more focused workforce. Organizations prioritizing well-being see higher engagement and retention.