How Australia’s employee engagement measures up

Australia is facing a decline in employee engagement, with just 16% of workers feeling fully engaged in their roles – down from 18% last year. This sharp dip stands in stark contrast to global trends, where engagement is steadily rising.

The latest research from ADP reveals a nuanced picture: Aussie employees working on-site or in the office report slightly higher engagement (17%) than those in hybrid settings (15%). The most disengaged group? Remote workers, with only 7% describing themselves as fully engaged.

“Our research demonstrates employee engagement ultimately comes down to how connected employees feel to their teams and employers, no matter where they work. Businesses should recognise that one-size-fits-all approaches no longer work, especially in an increasingly hybrid workforce,” said Emmy Andriotis, Human Resources Director, ADP Australia.

She added, “Investing in personalised, flexible solutions and cultivating a sense of belonging is a great starting point to bridge the gap, ensuring employees feel connected, valued, and motivated—whether they’re working from home or the office.”

Globally, more than half (56%) of employees now work on-site daily – up two percentage points from last year and up eight points from 2022. Meanwhile, 32% operate in a hybrid model, and only 12% work fully remotely. Despite Australia’s heavy investment in remote work capabilities, flexibility in choosing where to work seems to be the real game-changer.

The data makes one thing clear: autonomy fuels engagement. Employees who have more freedom over where they work – whether on-site or remotely – are significantly more engaged. Yet in Australia, only 21% of employees enjoy this level of flexibility. That figure lags behind other APAC nations such as India (45%), Singapore (27%), and even New Zealand (24%).

Ultimately, it’s not just about where people work, but how empowered they feel in making that choice. Even if employees remain in traditional workplaces, having autonomy appears to be a key driver of their emotional and professional investment.

In roles that require on-site presence, organisations must turn to another powerful lever: team belonging. The research shows a sharp contrast – while 90% of employees are technically part of a team, only 52% of those on high-performing teams are fully engaged. Among those who don’t see their team as high-performing, that figure drops dramatically to just 10%.

This points to an undeniable truth: cultivating high-functioning teams and nurturing a sense of belonging isn’t a soft skill – it’s a business imperative.

As companies navigate the evolving workplace landscape, the development of local leaders is critical. These leaders serve as linchpins for team performance, morale, and sustained engagement.

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