Employee engagement in India has sharply declined, falling to 19% in 2025 from 24% the previous year, according to ADP Research Institute’s “People at Work 2025” report. This five-point drop represents the steepest fall globally, reversing gains and contrasting with global engagement trends, which have shown steady improvement.
A Wake-Up Call for Employers
Rahul Goyal, Managing Director of ADP India and Southeast Asia, described the decline as a signal that organisations must urgently re-examine how they engage employees. “Our research shows that flexibility and a sense of belonging can significantly influence employee engagement,” he said. “Employees who feel connected, valued, and empowered are considerably more engaged.”
Goyal urged companies to adapt their strategies by offering greater location flexibility, prioritising interpersonal connection, and investing in skills development—particularly for younger employees, who reported the lowest engagement levels. “Adopting a proactive approach to employee engagement is essential for ensuring long-term business success,” he added.
Location Flexibility Drives Engagement
The report highlights a strong link between employee autonomy over work location and higher engagement. India ranks among the top countries globally in this regard, with 45% of employees enjoying complete autonomy, second only to Egypt (47%).
In terms of work arrangements, 50% of Indian employees work on-site daily, 36% follow a hybrid model, and only 14% work fully remotely. Those with full location control are significantly more engaged than those without.
Globally, the share of on-site workers has risen to 56%, while fully remote workers now make up 12%, and hybrid arrangements account for 32%.
Regional and Demographic Insights
India’s engagement decline contrasts with gains in the Middle East and Africa, where engagement rose by three percentage points to 25%. Within India, on-site workers reported higher engagement (21%) than hybrid (19%) and remote workers (8%).
Women reported higher engagement (22%) than men (17%), and employees aged 40 to 54 were the most engaged at 24%. By comparison, only 15% of those aged 18–26 felt engaged, highlighting a potential generational divide.
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Team Belonging: A Vital Lever
The report also underlines the importance of fostering a sense of team belonging to boost engagement, especially in roles that require on-site presence. Although 33% of Indian employees reported being part of what they consider the best team—a figure second only to Egypt—this represents a 3% decline from the previous year.
Globally, team dynamics play a crucial role. Employees who consider themselves part of high-performing teams are five times more likely to be fully engaged (52%) compared to those who don’t (10%).
Outlook
The findings suggest that Indian employers must prioritise building inclusive work environments and flexible arrangements, while investing in team culture and skill development. With employee engagement closely linked to business performance, the cost of inaction could be high. The onus is now on employers to bridge the gap before it becomes a permanent trend.
