Perceptyx, the AI company for employee experience, has released new research revealing a historic reversal in what drives employee engagement in the workplace. A decade-long analysis of over 20 million global employee survey responses shows a striking shift in 2025: belonging and feeling valued, once the strongest predictors of high engagement, how rank among the lowest. Taking their place, employees now prioritize confidence in senior leadership and how well their organization adapts to change. The data suggests a pivot toward performance and strategic clarity over traditional culture markers.
“For nearly a decade, the strongest drivers of engagement were emotional and culture-based,” says Brad Wilson, global head of workforce insights and innovation at Perceptyx. “In 2025, that has now flipped. Employees aren’t asking, ‘Do I feel valued today?’ They’re asking, ‘Do I believe this company will succeed and will I succeed with it?’ This is the biggest shift we’ve ever recorded.”
Amid economic uncertainty, reorganizations, and fluctuating talent markets, employees are increasingly evaluating organizational credibility, stability, and leadership effectiveness—not perks, morale programs, or managerial support.
“Change is handled effectively in my company” has risen to the top driver of employee engagement in 2025, its highest position ever on record. Employees who believe their organizations effectively handle change report markedly higher levels of commitment, pride, motivation, and willingness to recommend their company as a great place to work.
Confidence in senior leadership has emerged as the second highest predictor of employee engagement in 2025, despite not ranking in the top five before 2021. While it ranked third in 2024 and held the No. 4 spot from 2021 to 2023, it did not appear in the top five from 2016 through 2020.
Deeper analysis revealed the following.
- Employee engagement becomes extra vulnerable during change. Employees report that advocacy and their intent to stay declines first after major disruptions such as layoffs, reorganizations, or post-merger integrations, further highlighting the importance of handling change effectively in today’s economic climate.
- Employees who feel a strong sense of personal accomplishment and growth report significantly higher engagement. Those who strongly agree their work contributes to organizational progress score more than 40 points higher in both trust and engagement.
- Employees are 3.5 times more likely to stay when they feel they have meaningful input into workplace decisions. This is a clear signal that effective leadership through change depends on fostering dialogue.
“Leaders are operating in a moment when confidence is the currency of performance,” Wilson adds. “The Perceptyx Engagement Model helps organizations pinpoint exactly where confidence is breaking down and how to rebuild it.”
In today’s climate, understanding the current drivers of employee engagement gives leaders a clearer view into retention, innovation, and performance risks. Organizations that can successfully align culture, leadership, and employee experience around the top drivers will be positioned to outperform their peers.
