Australia worker engagement plummets to 16%

Recent research has displayed some alarming revelations around worker engagement throughout Australia.

ADP’s recent People at Work 2025 report found that less than one in five (16 per cent) Australian employees reported being fully engaged while on the job – a decrease from 18 per cent in the previous year.

The research shows that Australia’s engagement rates are reportedly higher for those operating out of the office or on-site (17 per cent) compared to hybrid workers (15 per cent). According to the data, remote workers are experiencing just a 7 per cent engagement rate.

This contrasts with a number of previous claims and global trends, which have shown that hybrid workplace arrangements promote greater engagement among the workforce.

According to ADP, Australian hybrid and remote workers may experience a more profound disconnect from their teams and company culture, exacerbating disengagement.

“Our research demonstrates employee engagement ultimately comes down to how connected employees feel to their teams and employers, no matter where they work,” said Emmy Andriotis, human resources director at ADP.

“Businesses should recognise that one-size-fits-all approaches no longer work, especially in an increasingly hybrid workforce. 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.”

In terms of office attendance data, 56 per cent of employees surveyed worldwide said that they work on-site every day (a two-point increase from the previous year), whereas only 12 per cent work exclusively remotely, and 32 per cent work in hybrid mode (down two percentage points compared to last year).

The data pointed out that of those workers who have the freedom to decide their working arrangements, their engagement rates were higher. However, just one in five Australian workers are afforded this autonomy, sitting at 21 per cent compared to countries such as India (45 per cent), Singapore (27 per cent) and neighbouring countries like New Zealand (24 per cent).

It underpins the importance of flexibility for workers and how much this workplace benefit can intertwine with an employee’s productivity and engagement. Hybrid working arrangements especially seem to be the preferred model, fostering face-to-face connection while still having flexibility.

As previously reported by HR Leader, data from the Australian Human Resources Institute revealed that 70 per cent of organisations plan to maintain their current hybrid model over the next two years, up from 59 per cent in 2023 and 53 per cent in 2022.

Kace O'Neill

Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.