Preparing for 2025: How Shifting Work Trends and AI Are Reshaping Employee Engagement
November 22, 2024 – Employees are grappling with multiple shifts in the ever-changing landscape of work. Layoffs and high levels of executive turnover continue to disrupt multiple industries. Generative AI tools like ChatGPT are unlocking new opportunities as well as stoking fears around job security. And almost five years after the onset of the COVID-19 pandemic, employees are still navigating new norms around remote and hybrid work, according to DHR Global’s Workforce Trends Report. As employers chart their course through these dynamic trends, understanding employees’ perspectives becomes crucial. In its inaugural DHR’s report, they surveyed 1,500 white-collar, desk-based knowledge workers across North America, Asia, and Europe about how these shifts affect their engagement and productivity.
Today’s desk-based employees appear to be highly enthusiastic and invested in their jobs, with 88 percent of respondents feeling very or extremely engaged. However, a closer look at the data reveals a more complicated picture. DHR’s survey defined “being engaged” as “feeling enthusiastic about your work and/or emotionally invested in achieving the goals of your team or overall organization.” However, when asked what drives their engagement, many employees cited factors that had more to do with external economic conditions than emotional investment. For example, over two-thirds of respondents (67 percent) say the tighter job market increases their engagement and 61 percent cite job insecurity as a motivator to stay engaged at work.
One way to shift employees from fear-based engagement to emotional investment in their work might be to offer more relevant professional development opportunities. More than three in four respondents (80 percent) said professional development opportunities increase their engagement. In addition, almost all respondents (93 percent) agree that they would feel more engaged at work if employers offered more relevant professional development opportunities.
“Employee engagement is high — but not for the reasons employers might want,” the DHR report said. “Some employees may feel compelled to stay engaged not out of enthusiasm or commitment, but because they are wary of the potential risks of leaving their jobs. Bolstering professional development offerings can help boost engagement in a deeper way, building employees’ emotional investment in their work.”
The Burnout Epidemic: Uneven Impacts Across Demographics
Despite high rates of engagement, DHR found that employees also reported high rates of burnout. Defined as feeling mentally, physically, and/or emotionally exhausted and stressed at work, burnout remains a pervasive workplace issue, the report notes. One in three employees (34 percent) say burnout reduces their engagement, and over eight in 10 employees (82 percent) say they feel burnt out to some degree.
Related: Use AI to Elevate Talent Acquisition
“Younger generations are more likely to say they feel burnt out,” the DHR report said. “Baby boomers on the verge of retirement might not feel as much pressure at work as Gen Zers new to the workforce who are still proving themselves, or millennials who may be stepping into management or leadership roles for the first time.”
DHR found that the drivers of burnout are similar across the board. Top contributors include working too many hours (58 percent), overwhelming workloads (35 percent), and difficulty balancing work obligations with personal/family life (34 percent). External factors can also exacerbate burnout. Sixty-one percent of employees agree that changes in their country’s political environment make them less engaged and more distracted at work. DHR explains that this could put employees at more risk for burnout in times of political turmoil or in important election years.
Twenty-two percent of APAC respondents feel extremely burnt out, compared to 13 percent of European respondents and 10 percent of North American respondents. Sixty-nine percent of APAC respondents say politics distracts them at work, compared to only 59 percent of European and 54 percent of North American respondents.
“The top drivers of burnout — long hours, overwhelming workloads, and difficulty balancing work and personal life — reveal systemic issues within organizations,” the DHR report said. “To better support all employees, organizations must implement strategies to help manage workloads, promote work-life balance, and give employees space to process difficult external events.”
Navigating AI’s Impact
The rise of generative AI tools like ChatGPT and Microsoft Copilot is sparking greater engagement and productivity, with 70 percent of respondents reporting these tools positively impact their engagement and 72 percent reporting a positive impact on productivity. However, employees’ feelings about generative AI are more complicated. While most (52 percent) feel enthusiastic about using generative AI to improve their job productivity, a significant portion of respondents feel unsure (10 percent), neutral (21 percent), or skeptical (17 percent). In addition, more than half (51 percent) are concerned about the threat generative AI poses to job security.
DHR found that almost three-quarters of European respondents (71 percent) said generative AI increases their productivity, signaling embracing the new technology. However, only 54 percent said generative AI increases their engagement — lower than both APAC (80 percent) and North America (61 percent).
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“Nearly half of all respondents remain neutral, skeptical, or unsure about AI’s potential impact on productivity,” the DHR report said. “That underscores the need for organizations to provide clear guidance and support to help employees navigate these tools — potentially an important focus for professional development.”
Trust & Turnover
In the past year, half of respondents experienced the departure of a C-suite executive at their organization. Given that 74 percent of employees express trust in their senior leaders (43 percent deeply trust them and 31 percent somewhat trust them), it’s understandable that C-suite departures have an impact on 93 percent of employees. Over half of respondents (55 percent) said the departure of a C-suite executive has made them question whether their organization’s mission is worth believing in or working for, and 52 percent said it created operational problems, like delays and confusion over ownership of projects.
However, DHR explains that the new leadership can also be an opportunity to inspire employees with a refreshed vision or new direction for the company. Almost two-thirds of employees (63 percent) said executive turnover increases their engagement.
The departure of C-suite executives can disrupt employees’ trust and confidence, according to the DHR report. “However, it doesn’t have to be that way,” it said. “Organizations that approach leadership transitions carefully can maintain morale — and even take advantage of the opportunity to re-engage and inspire employees. When a new executive takes the reins, it’s vital that they present a clear vision for where they want to take the company, then take immediate steps to implement it. If they can make their first six months count, they will create momentum that will last the rest of their tenure.”
Looking Ahead
The past few years have been tumultuous for employers, and 2025 is unlikely to be any different, the DHR report concludes. “In the U.S. specifically, employers will need to adjust to a new presidential administration and any accompanying regulatory shifts,” DHR said. “Worldwide, economic uncertainty will continue to rattle financial markets. Long-term trends like generative AI and remote work will continue to evolve. Addressing these and other current trends today will lay the groundwork for your organization’s future success.”
Related: Top 5 Hiring Trends for 2025
Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
