Employee Engagement and Happiness: Are We in Crisis?

Josh Bersin’s latest article, Employee Engagement and Happiness Crisis: What Should We Do?, delivers a stark look at the state of engagement and happiness in the workplace.

Recent data from Gallup and the World Happiness Report highlight a worrying trend: only 21% of employees are fully engaged, a 10% drop from last year.

Meanwhile, 66% are “suffering” and 8% are “struggling.”

Even managers aren’t immune. Engagement among leadership has fallen to 27%, an 11% decrease. Bersin attributes this decline to factors such as:

• A “financial first” approach in many organisations
• Lack of accountability
• Limited investment in employee development

What can organisations do?

Bersin outlines several practical steps:

• Rethink the “Financial First” Focus: Treat human capital as an investment, not a cost.
• Refocus on Purpose with Accountability: Balance meaningful work with clear accountability.
• Avoid Over-Hiring: Grow internal talent instead of over-relying on external hires.
• Invest Generously in Development: Offer continuous learning to support growth and well-being.

Bersin concludes that the most successful organisations, which he calls “Irresistible Organisations,” consistently outperform peers by prioritising employee engagement and experience. He stresses a holistic approach—bringing the whole of organisation together to support employees.

This article is a call to action for leaders and HR professionals.

How is your organisation responding to the engagement and happiness challenge?

You can read the full article here