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December 8, 2025

How Positive Culture and Leadership Can Improve Employee Engagement and Retention

Explore how fostering inclusive leadership, open communication, and a supportive culture can reduce disengagement and help build a motivated, productive workforce.

Summary

  • Employee disengagement remains a critical workplace challenge.
  • Inclusive leadership fosters authentic employee connections.
  • Clear communication supports a positive, engaged culture.
  • Addressing incivility improves morale and productivity.
  • MMA offers resources to help build a caring workplace culture.

Tackling disengagement is a growing priority for organizations today. According to Gallup, 17% of employees are completely disengaged, while only 32% feel engaged in their work. Disengaged employees can cost companies through reduced productivity, higher turnover, and lower morale. Adding to the challenge, incivility in the workplace is a significant factor driving disengagement. The Society for Human Resource Management (SHRM) reports that 26% of employees are likely to leave their jobs in 2025 due to workplace incivility.

What is the state of employee engagement today?

Recent studies show that only 31% of employees strongly agree they have someone at work encouraging their development, and just 32% feel connected to their organization’s mission. Additionally, 28% believe their opinions count. SHRM also found that 60% of U.S. workers think it’s important for companies to address incivility, with 44% expecting it to worsen.

Incivility in the workplace goes beyond simple rudeness—it creates a toxic environment that lowers morale, increases stress, and fuels employee disengagement.

What makes an engaged employee?

Gallup defines engaged employees as those who are psychologically committed to their roles, feel their work has purpose, understand expectations, have the resources they need, and take ownership of their work and customer experiences.

Making culture better: Plant your cultural seeds now.

A strong, accepting, and connected culture is essential for tackling disengagement and building a motivated, productive workforce. Culture isn’t just a top-down directive—it’s an ecosystem that requires planting the right seeds and nurturing them continuously.

Key cultural “seeds” include:

  • Positive, inclusive leadership that values employees’ authentic selves
  • Clear communication of purpose, values, and expected behaviors
  • Resources that support work-life balance, health, and growth
  • Talent management focused on recognition, training, and advancement
  • Open, respectful, two-way communication promoting civility 

Positive leadership: The first seed for success

Inclusive leadership actively promotes engagement by recognizing employees for who they are and what they accomplish. Gallup reports that employees who don’t feel recognized are twice as likely to quit within a year. Building real relationships through honest conversations and active listening can foster a culture where employees feel they belong.

Harvard Business Review found that inclusive organizations reduce attrition by 76%, increase innovation revenue by 73%, and are 70% more likely to capture new markets.

Culture thrives on open and consistent communication.

Effective communication means more than occasional emails—it’s about creating ongoing systems for listening and learning. Tools like focus groups, Employee Resource Groups, candid conversations, civility training, and anonymous surveys help organizations understand and address employee concerns.

Ready to tackle disengagement?

Marsh McLennan Agency (MMA) offers expertise and resources to help organizations make culture better and reduce employee disengagement. Visit our website for toolkits, mental health resources, and playbooks to support well-being and engagement.

Contact your MMA representative today to learn more.
 

Contributors

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Susan Morgan Bailey

SVP, Culture & Inclusion Consulting Practice Leader

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Gary Abernathy

Vice President, Culture & Inclusion Consulting