Employee expectations are shifting in ways that are hard to ignore. What motivates people, how they define growth, and what they expect from work don’t look quite the same as they did even a few years ago. At the same time, engagement has been trending downward. In 2025, U.S. employee engagement fell to 30%, its lowest point in more than a decade.
Insights from Marsh McLennan Agency’s (MMA) 2026 National Benefits Survey and 2026 Employee Health & Benefits Trends Report highlight what’s driving these shifts—and where employers are focusing next.
For employers, this raises an important question: What actually keeps people connected to their work today? More often, it comes down to how well organizations understand and respond to what employees need in the moment. In other words, meeting employees where they are.
What’s behind the shift in engagement
For many employees, disengagement isn’t tied to one specific issue; it’s built over time. Change fatigue is part of it. Many HR leaders say their workforce is feeling the strain, which can show up as uncertainty, burnout, or a sense of being stuck. In fact, two in three professionals report feeling that way in their careers.
There’s also a shift in how employees view their role at work. Four in ten say they feel more replaceable and less valued than they did a few years ago. For younger employees, the traditional path forward doesn’t hold the same appeal. Only a small percentage of Gen Z workers say they’re aiming for leadership roles, and many see middle management as high pressure with limited upside.
Taken together, these trends suggest that engagement is becoming more personal. Employees are looking for work that feels relevant to them—not just in what they do, but in how they’re supported.
Flexibility is now the baseline
One of the most visible changes has been around flexibility. Many employers now offer hybrid or fully remote work options, with most hybrid models still including some time in the office. What’s interesting is how closely flexibility ties to engagement. Hybrid work has been linked to lower turnover and stronger engagement levels, with hybrid employees more likely to feel connected to their work than those working entirely on-site.
At the same time, return-to-office policies haven’t always landed the way organizations expected. In many cases, stricter requirements have led to talent loss. In fact, according to our 2026 Trends Report findings, eight in ten companies report that their return to office policies caused them to lose talent.
Flexibility is also expanding beyond where work happens. More than half of employees say a four-day workweek is one of the benefits they’re most interested in. For many organizations, the conversation has shifted from offering flexibility to figuring out how to make it work in a way that supports both the business and the workforce.
Growth still matters, but it looks different
Even with more flexibility, employees are still thinking about what’s next. Many organizations are responding by putting more focus on development. Nearly half are expanding professional development opportunities, while others are investing in additional resources to support employee growth. Leadership development is also getting more attention as employers look for ways to strengthen engagement.
But the idea of growth itself is evolving. Traditional career ladders don’t carry the same weight they once did, especially for younger employees. Instead of a linear path, many are looking for options—ways to build skills, take on new challenges, and shape a career that fits their interests.
Organizations that can offer that kind of flexibility in career development tend to create stronger connections with their workforce over time.
Culture is happening at the team level
Culture still plays a big role in engagement, but where it shows up is changing. More organizations are recognizing that employees experience culture most directly within their teams. Many business leaders point to small teams and microcultures as effective ways to build connection and adaptability.
When teams have a strong sense of alignment and support, employees are more likely to feel connected to their work. It also gives organizations a better way to understand what’s happening on the ground and adjust as needed. Instead of trying to define culture from the top down, many employers are focusing on how to support it at the team level.
Benefits are still a key part of the experience
Benefits continue to be an important piece of the engagement conversation, especially as employees weigh their options more carefully.
MMA’s 2026 National Benefits Strategy survey highlights how employers are adjusting:
- 59% have increased compensation.
- 49% have updated onboarding to improve the early experience.
- 33% have expanded perks and benefits beyond traditional offerings.
- 20% are offering additional PTO.
There’s also a growing focus on long-term support. Nearly half of employers view retiree medical benefits as a way to help employees transition into retirement.
At the same time, organizations are placing greater emphasis on listening. Almost half currently administer employee engagement surveys, with another 13% planning to introduce them in the coming year.
These efforts point to a broader shift—benefits strategies are becoming more intentional, more personalized, and more closely aligned with what employees actually value.
Turning insights into action with MMA
Having a clear view of these trends is helpful. The next step is figuring out how to apply them in a way that works for your organization.
MMA works with employers to connect the dots between workforce insights and practical strategy. This can include evaluating benefits programs, rethinking communication approaches, or identifying ways to better support different employee groups.
Tools like iNGAGED HQ can help bring those efforts together. iNGAGED HQ gives organizations a more connected way to reach employees, whether they’re in the office, working remotely, or somewhere in between. It supports communication across multiple channels, helps organize important resources in one place, and makes it easier for employees to find what they need.
With the right strategy and tools in place, you can turn insights into action. MMA can help you meet employees where they are and help create experiences that feel relevant and easy to engage with.
