Employee Engagement Stagnates as Compensation and Career Development Lag
Event summary
- McLean & Company's 2026 Employee Engagement Trends Report shows 79.7% of employees expect to stay with their organization, up from 77.5% in 2024.
- Total compensation remains the lowest-scoring driver at 52%, with little year-over-year improvement.
- Career advancement and development scores sit at 58.3%, identified as the top reason employees leave organizations.
- 40% of employees report higher job-related stress, and only 23% rate leaders as highly effective at coaching.
The big picture
McLean & Company's report highlights that while overall employee engagement has remained stable, key drivers such as compensation, career development, and leadership effectiveness are lagging. Organizations that fail to address these gaps risk plateauing performance and losing competitive edge. The data underscores the need for targeted HR actions to translate engagement into measurable business outcomes.
What we're watching
- Compensation Alignment
- Whether organizations can align total rewards strategies with employee expectations to address ongoing compensation concerns.
- Career Development
- The pace at which companies strengthen career development pathways to improve engagement and reduce turnover risk.
- Leadership Capability
- How improvements in leadership coaching and feedback will support employee growth and development.