Skip to content
ADVERTISEMENT

Employee engagement declines as burnout reshapes workplace loyalty, study finds

According to a report from Resume Genius, engagement has fallen from its 2020 peak.

Employee engagement declines as burnout reshapes workplace loyalty, study finds
ADVERTISEMENT

Employee engagement has declined in recent years, with research from Resume Genius suggesting a combination of burnout and financial pressure affecting how employees feel about their roles.

According to a report from Resume Genius, engagement has fallen from its 2020 peak, with data from Gallup indicating there are now around eight million fewer engaged workers across the US.

The 2026 Employee Engagement Report identified several key factors behind the shift, including rising levels of burnout, increased financial stress and a decline in perceived management support.

The findings suggest that disengagement is less about dissatisfaction with work itself and more about wider conditions affecting employees’ wellbeing and sense of security.

Nathan Soto, career expert at Resume Genius, said: “Engagement isn’t just about whether employees like their jobs. It also translates to whether they feel secure and supported in their jobs as the nature of work changes.

ADVERTISEMENT

“AI may be increasing productivity, but if it also increases anxiety or weakens social connections, employers could see employee loyalty quietly decline, even as engagement rises in the short term.”

The report highlighted burnout as a significant factor, particularly among younger workers.

Around 75% of Gen Z employees said they experience burnout at least sometimes, with 27% reporting frequent burnout and 14% saying they feel burned out all the time.

ADVERTISEMENT

Mental health pressures are also influencing workplace behaviour.

Some 35% of employees said they have taken sick leave specifically for mental health reasons, while 51% said they feel pressure to avoid showing vulnerability at work and 38% said they hesitate to speak up due to fear of judgement.

ADVERTISEMENT

The research also pointed to financial concerns as a key driver of engagement.

ADVERTISEMENT

Workers said they expect an average annual pay increase of 8.6%, rising to 10% among Gen Z employees, while 85% of younger workers said they would leave their job for higher pay.

Among financially stressed employees, more than half (56%) said they spend at least three hours a week distracted by personal financial concerns during working hours.

Just 54% of these employees said they feel optimistic about their future with their employer, compared to 69% of those not experiencing financial stress.

The report also found a decline in perceived management support.

ADVERTISEMENT

Fewer employees said they clearly understand what is expected of them, feel cared for at work, or believe they have the opportunity to use their strengths on a daily basis.

Resume Genius said these factors are contributing to a shift in how engagement is defined, with issues such as psychological safety, financial wellbeing and the impact of new technologies increasingly shaping employee loyalty and long-term commitment.