Why Engagement Matters More Than Ever in 2025

allynitschke
Sep 4
3 min read

We've had a busy couple of weeks travelling across the country to host our Leadership Networking Breakfast and also share my most recent whitepaper on 'The Future of Leadership In The Age of AI'.

To say it's caused a stir, is an understatement. If you'd like to access a copy, it'll be available in next week's newsletter.The whitepaper, which I've rebranded as a Special Report has been prompting a lot of discussion on what the future of workplaces look like as well as what leaders' roles are going to mean in the future.The most common theme over the last couple of weeks has been people asking me “What’s the secret to retaining good people?”

My answer is simple: engagement.

But here’s the problem, engagement is currently in free fall. Globally, only 21% of employees are engaged at work, and that number has barely shifted in the last decade. In Australia, the story is just as worrying, with rising burnout and attrition putting pressure on leaders to keep their teams motivated and connected (not to mention to keep them inspired and productive)

And this isn’t just a “nice-to-have.” Engagement is the difference between a team that goes through the motions and a team that drives transformation.

Engagement = Energy

At its core, engagement is about energy. Engaged employees bring curiosity, passion, and commitment to their work. They feel connected to a bigger purpose and know how their efforts contribute to it.

When engagement is low, energy collapses. People start “quiet quitting,” doing the bare minimum to get by. Creativity dries up. Leaders spend their time chasing, checking, and correcting instead of inspiring.

That’s why engagement matters now more than ever, because without it, organisations fall into a spiral of busyness without progress.

The Cost of Disengagement

The numbers are staggering: disengagement costs the global economy US$438 billion every year in lost productivity. That shows up as:

Higher turnover and recruitment costs.
Missed opportunities for innovation.
Slower growth and execution delays.

In short, disengagement isn’t just a cultural issue, it’s a performance and profit issue.

Why Traditional Engagement Levers Don’t Work Anymore

Leaders often default to perks: pizza Fridays, beanbags, or wellness apps. But engagement doesn’t come from surface-level fixes, it comes from meaningful leadership.

Today’s employees want:

Clarity – What’s the purpose, and how does my role matter?
Connection – Do I belong here? Am I seen and valued?
Courage – Will my leaders make the tough calls to protect culture, well-being, and integrity?

When these are missing, no amount of free coffee will make people stay.

In every single conversation I've had in the last 2 years with CHROs, CPOs and People Professionals on their engagement survey, every single one shows that their people are looking for more leadership visibility and more leadership capability.

Building Engagement Through Courageous Leadership

Here are three practical ways leaders can build real engagement in 2025:

Start With PurposeReconnect your team not only to the "why", but more importantly to their “why.” Share not just the goals, but the impact of their work.
People rally around meaning, not metrics.
Foster BelongingPsychological safety isn’t a buzzword, it’s the foundation of connection. Ask for opinions, encourage debate, and show appreciation often. (here's an article I wrote on connection and belonging last year).
Model CourageEngagement thrives when leaders walk their talk. Hold people accountable fairly, make hard decisions transparently, and admit when you don’t have all the answers. (here are my thoughts on accountability)

Engagement isn’t fluffy, it’s fuel.

In an era where burnout, disruption, and busyness threaten progress, it’s the leaders who prioritise clarity, connection, and courage who will have teams ready to rise to the challenge.

The question isn’t whether engagement matters, it’s whether you’re prepared to create it.

If you would like to book in a time to speak with Ally: CLICK HERE.

Ally Nitschke is a best-selling Author, an award-winning Thought Leader and Speaker. She has been working with leaders and as a Leader for over 20 years.

She is on a mission to change the way we communicate at work, to lean into those uncomfortable conversations and lead with courage.

Ally is a Keynote Speaker at conferences, delivers Transformational Programs & highly engaging workshops as well as provides Executive Coaching.