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UK Employee Engagement Statistics 2025-2026

Joe Morrison
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Statistics showing 2025 UK employee engagement and trends in EVP, happiness, and workplace performance.

UK Employee Engagement Statistics 2025-2026: What the Numbers Really Tell Us

If you’ve ever wondered whether happiness at work really makes a difference, here’s your answer – in numbers.

 

 

At CHEER we often quote a number of stats to highlight the importance of EVP and having an engaged workforce.
Below is a snapshot of the latest employee engagement statistics for 2025, heading into 2026, alongside data on disengagement, happiness, and the power of a great Employee Value Proposition (EVP).

 

The State of Engagement in the UK

  • Only around 10% of UK workers are engaged, according to Gallup’s State of the Global Workplace report.
    → Source: AOEC

  • The UK ranks 33rd out of 38 European countries for engagement levels.
    → Source: AOEC

  • UK employees report more negative daily emotions than most of Europe: 40% feel stressed, 27% feel sad, and 20% feel angry at work.
    → Source: Insider Media

  • Only 38% of UK employees trust their senior leadership, affecting overall engagement and EVP effectiveness.
    → Source: Stribe
  • Only 8% or fewer UK-based employers indicate high degrees of trust in their employees, suggesting a trust deficit in organisations.
    → Source: Productivity UK
  • One in four UK employees feel voiceless in their organisation, suggesting communication issues.
     → Source: Stribe

In short: most UK employees are not engaged, and that emotional burden is hitting productivity hard.

The Cost of Disengagement to UK Businesses

  • The UK economy loses over £257 billion every year to low worker engagement — about 11% of GDP.
    → Source: ADVFN

  • Some studies place that figure even higher, at £340 billion+ annually, once you include recruitment, training, absenteeism, and presenteeism.
    → Source: DiversityQ

  • Each disengaged employee costs their organisation roughly 20% of their annual salary in lost output.
    → Source: People Management
  • UK Business is losing £15bn a year on benefits and reward that don’t align with what their employees value
    → Source: Isio/YouGov Study

If nothing changes, that number will only rise in 2026 – especially as stress and burnout continue to climb.

The Benefits of Engaged Employees

While the UK’s overall engagement picture is poor, the pockets of organisations getting it right tell a powerful story:

  • Engaged employees are 2.5 times more likely to exceed performance expectations, reinforcing the benefits of engagement strategies.
    → Source: Productivity UK

  • Engaged Employees are 14% more productive. Sales can be 18% higher
    → Source: Gallup

  • They are 23% more profitable
    → Source: Gallup

  • 21% lower turnover for high‐turnover organisations and 43% lower turnover for low‐turnover organisations
    → Source: Gallup

  • Another quote suggests companies with high employee engagement experience a 59% lower turnover rate, emphasizing retention benefits.
    → Source: Various

  • Engaged employees are 41% less likely to be absent from work
    → Source: Gallup (via this link)

The Opportunity

This also means that if you take action, you’ll get a competitive advantage in attracting talent to your organisation – and keeping them engaged!

So What Do People Want, and what are companies doing?

A strong Employee Value Proposition (EVP) ties everything together – purpose, culture, growth, and reward. But what are people saying they want? and what are businesses doing to support people?


This is where EVP comes in

This also means that if you take action, you’ll get a competitive advantage in attracting talent to your organisation – and keeping them engaged!

  • Organisations with a well-defined EVP are twice as likely to report effective leadership
    →  Source: Gartner (Paywall)

  • Organisations with a well-defined EVP are three times more likely to report higher levels of employee engagement
    →  Source: Gartner (Paywall)

  • Organisations with a well-defined EVP are six times more likely to report a strong sense of direction
    →  Source: Gartner (Paywall)
  • Employees are 28% more likely to recommend their organisation after they implement an EVP
    →  Source: Gartner
  • Turnover can decrease annually by 69% when a business implements an effective EVP
    →  Source: Gartner
  • CHEER wants less anonymous surveys, more EVP style communication: 33% of employees say a lack of open, honest communication negatively impacts morale, highlighting the need for transparency
    →  Source: Build Empire

✅ Final Word

As we move into 2025–2026, these UK numbers should serve as a wake-up call.
Disengagement is costing billions, but the fix isn’t mysterious – it’s measurable.

When people feel happy, valued, and connected to the purpose of their work, they perform better.
And that starts with understanding what matters most to them.

That’s exactly what the CHEER! Survey helps businesses do – mapping how important things are to employees, how well you deliver on them, and what to prioritise next.

👉 Contact us now to talk engagement, and create happiness, employee engagement and results in your business.

EVP through CHEER