Right Management’s latest report reveals what truly drives engagement and
retention in today’s global workforce.
In today’s workplace, the pressure to attract and retain top talent is more intense than ever. Organizations are navigating a landscape shaped by shifting employee expectations, evolving skill demands and a growing disconnect between leadership perception and employee reality.
Yet many companies are still relying on outdated playbooks, investing heavily in recruitment strategies, compensation packages and workplace perks. Unknowingly, they are overlooking the deeper drivers of long-term engagement.
This is one of many critical insights from the first global report in Right Management’s 2025 The State of Careers series: “The Career Equation: What Attracts Talent Isn’t What Keeps Them.”
As a global talent development leader for over 45 years, Right Management partnered with Reputation Leaders to conduct independently commissioned, proprietary research across eight countries and four major regions, including North America, Latin America, Europe and Asia-Pacific. The study gathered insights from 2,402 white-collar employees and 1,029 business leaders, revealing a critical misalignment in how engagement is understood and acted upon. For employers in Michigan, these findings highlight the urgent need for modern employee engagement strategies that improve retention and workforce resilience.
The Engagement Illusion: A Global Disconnect
One of the most striking findings from the report is what Right Management calls the Engagement Illusion: a significant gap between how leaders perceive employee engagement and how employees actually feel.
- 53% of leaders believe their teams are fully engaged.
- In reality, only 37% of employees are fully engaged.
- Even more concerning, 41% of employees are disengaged, and 22% are only somewhat engaged — a group shown to be at the highest risk of leaving.
This illusion isn’t just a matter of differing opinions. It’s a strategic blind spot that leads organizations to prioritize the wrong initiatives, invest in ineffective solutions and ultimately lose the very talent they worked so hard to attract.
The consequences are real. According to Gallup, only 31% of U.S. employees are engaged — the lowest level in over a decade — costing companies billions in lost productivity. This external data reinforces the urgency of the issue: employee engagement in Michigan and across the U.S. is not just a soft metric; it’s a business-critical one.
Attraction vs. Engagement: A Misguided Strategy
So where does the disconnect begin? Often, it starts with a fundamental misunderstanding: what attracts talent is not what keeps them. This is what we call the Talent Paradox.
When considering new job opportunities, employees prioritize pay and benefits (36%) and job logistics (19%). These are tangible, immediate incentives that help lure candidates in. But once inside the organization, these factors play a much smaller role in long-term engagement.
Instead, employees stay when they feel aligned with leadership and the culture, see a future for themselves and have opportunities to grow. The report shows that fit and career development are far more influential in driving engagement than compensation or perks.
Yet many leaders continue to rely on attraction levers — competitive salaries, flashy benefits and brand reputation — assuming they’ll translate into retention. This flawed assumption leads to short-term wins but long-term losses.
What Really Drives Employee Engagement: Fit and Career Development
To build a truly engaged workforce, organizations must understand the deeper, more intrinsic drivers of employee engagement. The report identifies two key factors:
- Fit — alignment with leadership, team, values and organizational culture.
- Fit accounts for 37% of engagement variance among employees.
- Leaders, however, attribute only 23% of engagement to fit.
- Career Development and Support — the ability to grow and see a future within the organization.
- Career support and development drive 27% of employee engagement.
- Leaders rate it much lower, at around 20%.
Meanwhile, leaders overemphasize compensation (21%) and job logistics (17%), which have far less impact on actual engagement.
Organizations in Detroit and Grand Rapids that focus on leadership alignment and career coaching Michigan employees will gain a competitive advantage in retention.
Regional Nuances: Global Engagement Isn’t One-Size-Fits-All
While the Engagement Illusion is global, its manifestations vary by region. Understanding these nuances is essential for multinational companies, needing to tailor their talent strategies across continents.
- In Latin America, career advancement and development are the top engagement drivers. Employees prioritize the likelihood of success and growth opportunities.
- In North America and Asia-Pacific, fit and confidence in organizational strategy play a central role.
- In Europe, alignment with organizational values takes precedence.
Despite these differences, one theme remains consistent: employees want to feel connected to their organization’s purpose and confident in their ability to grow within it.
Good Reasons to Make a Change: The Costs of Misalignment
When leaders focus on the wrong engagement and retention levers, they risk:
- High turnover among top performers
- Widening skills gaps due to reactive hiring cycles
- Reduced productivity and morale
- Missed opportunities to build a future-ready workforce
For Michigan employers, the cost of disengagement goes beyond turnover—it weakens local talent pipelines and hurts competitiveness in industries already facing shortages.
From Illusion to Insight: Retention and Engagement Strategies That Work
The good news? These challenges are far from unfixable. The report offers a clear path forward for organizations willing to listen, learn, and lead differently.
To close the gap between perception and reality, leaders must:
- Hardwire culture into talent strategy
Assess values and motivations during hiring. Coach leaders to role-model purpose and conduct meaningful career conversations. - Prioritize potential over performance
Use tools like 360 reviews and psychometric assessments to identify growth traits. Track internal mobility and retention trends to inform development decisions. - Build meaningful careers
Offer coaching, self-awareness assessments and visible career paths. Upskill managers to support career ownership and flexibility.
Incorporating these employee engagement strategies Michigan leaders can strengthen workforce resilience while showing a clear commitment to talent retention.
Conclusion: Employee Engagement Is a Journey, Not a Perk
As the “The Career Equation” makes clear, engagement isn’t a one-time fix or a line item in a budget. It’s a continuous journey rooted in connection, purpose and growth. Leaders who embrace this reality will build more loyal, productive teams and position their organizations for long-term success.
The Engagement Illusion is a turning point. New engagement strategies are essential to meet the needs of today’s evolving workforce. By shifting from assumptions to understanding, organizations can move from insight to impact — and from retention risk to workforce resilience. Ready to strengthen your workforce with proven career transition and leadership solutions? Contact Right Management Great Lakes today to learn how our outplacement services in Michigan and career coaching programs in Detroit and Grand Rapids can protect your brand, retain top talent, and empower your people to succeed.
FAQs: Building a More Engaged and Resilient Workforce
Why is employee engagement declining in Michigan and across the U.S.?
Many organizations continue using outdated engagement models that focus on pay and benefits instead of purpose, connection, and growth. Michigan employers who emphasize career development and leadership alignment see stronger engagement and retention results.
How can career development improve employee retention?
Career development gives employees a clear sense of direction and growth within the organization. When professionals have access to coaching, learning, and mobility opportunities, they’re more likely to stay committed and contribute at higher levels.
What steps can leaders take to build a more engaged workforce?
Leaders should integrate engagement into every part of their talent strategy, from hiring for cultural fit to offering coaching programs and visible career paths. Regular feedback and authentic communication also help employees feel valued and connected to the organization’s mission.
How can organizations in Detroit and Grand Rapids strengthen engagement today?
Michigan-based organizations can boost engagement by aligning leadership with workforce needs, offering personalized career coaching, and using data-driven insights to guide employee development. Partnering with a trusted outplacement and talent solutions provider can accelerate these improvements.
Where can I learn more about improving employee engagement?
Visit Right Management Great Lakes to explore the full State of Careers report and discover how our Michigan-based career transition and coaching programs can help your organization retain top talent and build a more resilient workforce.
