As we step into 2025, employee engagement has never been more critical to the success of organizations. In the dynamic world of work, where five generations—Baby Boomers, Gen X, Millennials, Gen Z, and the emerging Gen Alpha—coexist, leaders are faced with the challenge of crafting engagement strategies that resonate across this diverse spectrum. From the desire for stability to the search for purpose and meaning in work, engagement strategies must be flexible, inclusive, and personalized.
Join us as Deborah Merkin, a leader in workplace culture and engagement incentives, shares her perspectives from the 2024 From Day One event in Brooklyn. In light of the evolving workplace, Deborah explores the importance of flexibility, recognition, and timely employee engagement to foster long-term loyalty and productivity. Through a deeper understanding of the needs of today’s workforce, this blog provides a blueprint for organizations looking to engage their employees meaningfully and effectively in 2025 and beyond.
Why is employee engagement more important than ever in 2025?
As we step into 2025, employee engagement has become a cornerstone for organizational success, driven by the diverse needs of a multigenerational workforce. With five generations active in the workplace—including Baby Boomers, Gen X, Millennials, Gen Z, and the emerging Gen Alpha—leaders face an unprecedented challenge: addressing a spectrum of preferences, values, and expectations shaped by distinct life stages. This diversity demands tailored approaches to engagement, emphasizing flexibility, inclusivity, and personalized recognition.
In 2024, Gallup reported that employee engagement in the U.S. dipped to its lowest levels in years, with only 33% of employees fully engaged and 16% actively disengaged. As younger generations prioritize meaning and purpose in their work, while older generations often value stability, organizations must rethink strategies to resonate across age groups. The stakes are high: engaged employees are not only more productive but also contribute to stronger team morale and reduced turnover. In this rapidly evolving landscape, fostering engagement isn't just a strategy—it's a business imperative for attracting and retaining top talent.
Using flexible work hours to support employees
Flexibility in work schedules isn't just a convenience—it’s a lifeline for many employees navigating challenging personal circumstances. In Deborah's example, an employee juggling homeschooling and a demanding full-time workload during the pandemic was offered a solution: part-time hours tailored to her needs. This thoughtful approach not only alleviated the pressure but also preserved her valuable contributions to the team. Fast forward, this flexibility has become a cornerstone of her continued success and loyalty to the organization.
This story exemplifies how personalized flexibility can support employees in both immediate crises and long-term career development. Research backs this up: a 2023 LinkedIn survey found that 83% of professionals view flexible work policies as a top factor when evaluating new opportunities. Moreover, fostering flexibility has been linked to reduced burnout and increased employee retention. Leaders who proactively address individual challenges, as seen here, can cultivate a workplace culture where employees feel seen, supported, and empowered to thrive.
Advantage of gift cards over cash bonuses
Gift cards offer a memorable and meaningful way to reward employees, standing apart from cash bonuses that often blend into everyday finances. While a cash bonus might cover bills or get absorbed into routine expenses, a gift card creates a special experience. Employees can use it to treat themselves, share a dinner with loved ones, or enjoy a unique activity—transforming the reward into a cherished memory.
Research supports this sentiment: studies show that experiential rewards often generate stronger emotional impacts than monetary equivalents. By offering gift cards as part of a thoughtful recognition program, organizations emphasize the value of an employee’s contribution, creating lasting positive associations with their workplace. Additionally, the flexibility of modern gift cards, such as the Engage2Reward™ Choice Card, allows employees to choose how they celebrate, enhancing the overall satisfaction and personal connection to the reward.
Recognizing individuals' unique contributions and needs
In today's workplace, acknowledging each employee's individuality is not just a courtesy—it's essential for building confidence and fostering a sense of belonging. Recognizing unique strengths helps individuals feel valued, even if their contributions differ from traditional measures of success. For employees, this might mean celebrating specialized skills or providing the flexibility for them to address personal needs, all of which contribute to a richer, more inclusive workplace environment.
Flexibility and empathy play pivotal roles in recognizing these unique contributions. Whether it’s allowing time off for personal challenges or avoiding rigid policies like micromanaging vacation time, such understanding builds trust and loyalty. Gallup found that employees are three times more likely to be engaged at work when they believe their employer genuinely cares about their well-being. By embracing this personalized approach to recognition, organizations cultivate stronger relationships with their teams, which ultimately enhances performance and retention.
Difference between employee recognition vs rewards
Understanding the distinction between recognition and rewards is crucial for building a thriving workplace culture. Recognition is a direct acknowledgment of an employee’s effort, often linked to personal contributions or going above and beyond. For example, thanking someone for working over the weekend to meet a deadline highlights their dedication and value to the team, especially for younger generations like Gen Z and Millennials, who prioritize their personal time and work-life balance. Recognition, in this sense, validates their commitment, and according to Quantum Workplace, employees who feel recognized are 2.7 times more likely to be engaged in their work.
Rewards, on the other hand, are typically tied to tangible outcomes and achievements, such as financial incentives or bonuses. If an employee’s efforts result in a successful project or meeting company goals, such as bringing in new revenue, that’s when a reward may follow. This reinforces the employee's role in contributing to the company’s success. While both recognition and rewards serve to motivate and encourage employees, the key difference is that recognition is about acknowledgment, while rewards are about reinforcing those contributions with incentives that directly benefit the individual. Both are necessary for a balanced employee engagement strategy.
Combatting quiet quitting with mindful employee engagement
As the workplace evolves, new terms like "quiet quitting" and "quiet thriving" have emerged, highlighting shifts in employee engagement and well-being. Quiet quitting refers to employees doing the minimum required to meet job expectations without actively engaging beyond their core responsibilities. However, there’s also a new concept gaining traction—“quiet thriving”—which emphasizes employees striving to succeed in a more balanced, yet still proactive, way. This shift reflects a broader need for employees to feel personally valued and supported, especially in a diverse workforce with varying needs.
As employees increasingly prioritize well-being, the role of managers becomes even more crucial. They must ensure their teams are not only aligned with organizational goals but also feel recognized and supported. This personalized approach fosters engagement, ensuring that employees don’t “ghost” their managers or disengage entirely. By acknowledging the diverse needs of their workforce—ranging from mental health support to flexible work arrangements—companies can better manage and support the thriving of every employee, reducing the risk of quiet quitting and cultivating a more collaborative, engaged work environment.
Maintaining the human touch with customer service vs chatbots
In a world increasingly reliant on automation, the balance between chatbots and human customer service is more critical than ever. While chatbots excel at handling simple, routine inquiries, their limitations become apparent in nuanced or emotionally charged situations. As Deborah mentions, delivering personalized support, such as ensuring customers can connect with a real representative within 24 hours, can significantly enhance the customer experience and foster loyalty.
75% of customers prefer interacting with a human rather than a chatbot for complex queries, and 63% said they would stop using a brand after a single poor customer service experience. Although chatbots are a valuable tool for efficiency, the role of empathetic, responsive human service remains irreplaceable in building trust and long-term relationships. As businesses look to the future, finding the right mix of human interaction and automation will be key to standing out in a competitive marketplace.
Mastering reward timing and execution
In employee recognition, timing is everything. Acknowledging an employee’s contribution immediately after a significant achievement makes a stronger impact than waiting too long.
However, timing isn’t just about speed—it’s about personalization. For example, public recognition might be perfect for some employees, while others may prefer a private acknowledgment. Understanding the individual preferences of your team members can ensure that the execution of recognition is both timely and well-received. By recognizing achievements promptly, whether it’s closing a new deal or completing a challenging project, you reinforce positive behavior and foster a culture of continuous improvement.
1 key takeaway: The importance of frequent recognition
One of the most impactful insights about rewards and recognition is the critical distinction between the two. While rewards are often tangible and tied to performance milestones, recognition is about consistent, meaningful acknowledgment of an employee’s contributions. According to recent research from Gallup, employees now expect weekly recognition from their direct supervisors. This shift highlights the growing importance of fostering a culture where acknowledgment is a routine part of leadership practices.
Though meeting the expectation of weekly recognition may seem daunting, it underscores how recognition directly impacts engagement and morale. Employees who feel valued are more likely to stay motivated, contribute creatively, and remain loyal to their organizations. Leaders who prioritize frequent, personalized recognition—whether through verbal praise, team shout-outs, or written acknowledgments—can significantly improve workplace culture and employee satisfaction.
