Many engaged employees are leaving despite high engagement levels, indicating a growing disconnect between employee engagement and retention and a potential shift in traditional workforce stability metrics.
This trend challenges the long-held assumption that a highly engaged workforce is a loyal one. For decades, organizations have used engagement scores as a primary proxy for retention and overall company health. Now, leaders must look beyond these surface-level metrics to understand the deeper factors driving attrition, such as communication failures, job insecurity, and dissatisfaction with leadership, which may be causing even committed employees to seek opportunities elsewhere.
What We Know So Far
- A new study from Firstup suggests that employee engagement may no longer be a reliable indicator of workforce stability, according to a report from uctoday.com.
- The same study found that almost half of engaged employees across office-based, managerial, and hourly roles are likely to seek another job within the next year.
- Average U.S. employee engagement for all employees has fallen from 35% to 31%, according to reporting from thenonprofittimes.com.
- Job satisfaction at nonprofits has reportedly continued a downward trend, dropping every year from 2023 through 2025.
- Job insecurity is a concern for staff members, even at organizations recognized as 'Best Nonprofits To Work For', according to the nonprofit-focused report.
The Paradox of Engaged Employees Leaving
A Firstup study of over 3,000 UK workers reveals a paradox: 76% of office-based employees are engaged, yet nearly half are considering leaving. This trend, reported by uctoday.com, is consistent across roles, with 48% of office staff, 50% of managers, and 47% of hourly workers planning to leave within the next year.
Traditional engagement metrics may mask instability, as "engagement alone is no longer a reliable signal of workforce stability," said Firstup CEO Bill Schuh, in a statement covered by uctoday.com. The study suggests employees commit to roles and colleagues but disconnect from the broader organization due to systemic issues.
One of the primary factors identified in the report is a breakdown in communication. According to uctoday.com, the Firstup study suggests communication failures play a major role in this disconnect. For instance, up to 76% of survey respondents reported missing important policy or procedural announcements, and many office-based employees and managers spend several hours each week just searching for basic information required to perform their jobs.
Why Engaged Employees Are Quitting
While the Firstup study points to communication, other reports highlight broader dissatisfaction with core aspects of the employee experience. A separate analysis focused on the nonprofit sector, detailed by thenonprofittimes.com, reveals a steady decline in job satisfaction over three years. The approval rating for the 'core employee experience' at nonprofits dropped to 90% in the 2026 report, down from 95% in the two preceding years.
This decline is attributed to several key problem areas: compensation, senior leadership, communication, and professional development. These factors contribute to a work environment where employees may feel unappreciated despite their hard work. Even in highly-rated workplaces, underlying anxieties can persist. "Job insecurity is real," Deb Taft, chief executive officer of global executive search firm Lindauer, told thenonprofittimes.com, indicating that even engaged staff feel vulnerable.
U.S. workforce engagement has declined to 31%, signaling growing discontent despite some experts like Peter Burke, president of Workforce Research Group, noting that "going from 97% to 92%, while a decrease, is still really quite good." However, the simultaneous rise in turnover intention suggests "good" engagement is no longer sufficient for retention.
Bridging the Gap: Engagement vs. Retention
Organizations must adopt a nuanced approach to workforce management, recognizing engagement and retention as distinct outcomes. An employee engaged by challenging work may leave due to lack of trust in senior leadership or frustration with internal processes, highlighting a disconnect between their role and the organization.
Addressing this gap requires a focus on foundational elements of the work environment. According to Nathan Lowis, Managing Director for EMEA at Firstup, technology can play a critical role. "If organizations want to improve communication and drive critical business outcomes such as increased retention, productivity, and safety, they have to empower all employees with the right technology," he stated in the uctoday.com report. This involves ensuring that critical information is accessible and that employees feel connected to the company's mission and direction, not just their immediate team.
To solve the paradox of quitting-but-engaged employees, organizations must diagnose root causes of discontent beyond survey scores. Ineffective communication, stagnant compensation, or lack of confidence in leadership are proving powerful enough to sever the link between employee engagement and loyalty.
