The Workplace Engagement Index
Discover what's driving engagement, productivity, and retention in 2026.
Our third annual Workplace Engagement Index shares exclusive insights from over 2,000 Australian and New Zealand employees and business and HR decision makers, uncovering the latest trends shaping employee engagement across workforces and generations.
The 4 trends to watch for in 2026
Significant perception gaps
This year’s report brings to light a persistent gap between how leaders perceive their workforce and the everyday experiences of their employees. While decision makers generally remain optimistic about the productivity, support, and engagement of their teams, our findings reveal that employee sentiment often lags behind these perceptions.
Recognition and rewards is business critical
Recognition and rewards remains fundamental to a high-performance culture, ranking as the number one driver of productivity for a second consecutive year. Our findings also highlight some interesting gaps between Australian and New Zealand employees that HR leaders need to be aware of.
The power of joy at work
One of the biggest trends coming out of this year's research is the impact of feeling joy at work. This underrated performance lever can dramatically improve employee engagement, productivity, retention, connection, and support. Our research cements that joy is not a soft cultural concept, but a measurable economic force.
Pressure is easing, but it hasn’t disappeared
Productivity is rising, with nearly two-thirds of employees reporting they frequently feel productive. Performance doesn’t improve in isolation; employees’ energy, focus, and resilience directly determine how effectively they work. That’s why stress and burnout are critical warning signs, and why the downward trends we observed in both are encouraging.
What our research reveals...
A snapshot of our latest findings, showcasing the state of engagement, productivity, and retention in 2026 across Australia and New Zealand.
1 in 4
A quarter of employees feel less engaged at work
46%
But almost half of business and HR decision makers believe engagement has increased
More than half of surveyed employees say they have considered leaving their job in the last six months
Almost two thirds of employees frequently feel productive, up from 47% in 2025
Methodology
This report is based on quantitative research conducted from a sample of 1,021 employees and 1,030 HR and business decision makers from organisations with over 100 employees across Australia and New Zealand.
The analysis includes:
- Employee sentiment on engagement, productivity, retention, recognition, support, and joy at work
- Business and HR decision makers' perceptions of the above areas
- Comparative trends across generations and workforces
This methodology ensures a balanced, evidence-based view of the challenges and opportunities shaping the HR landscape in 2026.
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