7 Trends Likely to Impact Employee Engagement and Loyalty in India in 2025

Employee engagement is in the middle of a storm, with a staggering 59% of global employees feeling disengaged and 18%, actively disengaged. This disconnect, when anticipated on a large scale, is a dangerous challenge for organizations, leading to reduced productivity, higher turnover, and no alignment with the organization’s vision. However, as organizations engage with this reality, they begin to focus their awareness on the crucial role that engagement and loyalty play in building a motivated and committed workforce.

In India, however, things take a more serious turn, given that employee expectations are changing, and workplaces are changing dynamically too. The coming of technology and giving meaning to workplace experiences are driving transformative changes in the way organizations engage. Seven major trends will redefine the norms of employee engagement and loyalty in 2025. This will give visibility and insights into how companies can navigate through this rapidly changing scene.

7 Trends Likely to Impact Employee Engagement and Loyalty in India in 2025

1. Refining the Hybrid Work Model

The hybrid work model is the norm in 2025. This makes organizations change their approach to adapt to supporting employees working in offices as well as from home. A survey by Slack globally, among 9,000 workers, stated that 72% prefer a hybrid model, whereas only 12% like the full office environment and 13% wish to work from home. An additional reason that Zoom’s whitepaper, Navigating the Future of Work, highlights hybrid work’s benefits for employee connection is that:

• Employees who work on a hybrid schedule express a strong/moderate sense of connection to their supervisors (82%), colleagues (87%), and the organization at large (76%).
• Those working remotely convey a similar level of connection to management (79%), peers (81%), and the company overall (75%).
• Staff based in the office feel less connected to their managers and the company as a whole, at 72% and 68%, respectively.

AV technology for corporates, for instance, can be vital in ensuring communication and collaboration within hybrid setups. Immersive video conferencing, interactive whiteboards, projectors, and collaboration spaces help bridge the gaps between remote and in-office workers, creating inclusivity and deeper engagement.

2. Employee Well-Being as a Strategic Priority

Employee well-being has emerged as the new backbone of workplace engagement strategies. 59% of employees experience stress at work most of the time, and that, according to Gallup, results in many repercussions:

• 75% of medical costs are because of preventable conditions worsened by poor mental health.
• For every 10,000 workers, $20 million in opportunities are lost due to struggling or suffering employees.
• Burnout costs organizations $322 billion annually in turnover and lost productivity globally.

Wellness initiatives, such as wellness programs, flexible schedules, and mental health support, can help organizations address these challenges, reduce stress, and foster loyalty.

3. Personalization of Employee Experiences

According to Gartner, 82% of employees say it’s important for their organization to see them as a person, and not just an employee. Moreover, it is noteworthy that Salesforce mentions the interrelation between EX—employee experience—and CX—customer experience:

• 61% of C-suite executives are of the view that good EX has resulted in better CX.
• 58% consider EX as a priority, but only 12% of employees feel that organizations have equal priority on EX and CX.

Personalized approaches such as tailored onboarding, career development plans, and rewards are associated with stronger emotional connections between employees and their organizations, thus boosting engagement and loyalty.

4. Emphasis on Learning and Development (L&D)

By 2030, it will become essential for over 1 billion people to undergo important reskilling initiatives, which spells the need for intensive learning and development (L&D) programs. The need for L&D in handling the transformations of the workplace is aptly captured in the following excerpt from the 2022 Workplace Learning Report released by LinkedIn:

• 74% of organizations say L&D has become more cross-functional.
• 72% define it as a more strategic activity in their business operations.

Organizations that invest in continuous learning—using technology to enable flexible and immersive learning programs—place them as employers of preference, thereby enhancing employee satisfaction and organizational resilience.

5. Inclusion and Diversity at the Forefront

It is no longer possible to compromise on diversity and inclusion (D&I) as factors in employee loyalty. According to Glassdoor, 76% of job seekers think about a company’s diversity while considering job opportunities, while 50% of employees want their organizations to focus on D&I initiatives. Research backs the business case for diversity:

• Companies with higher diversity experience 19% more revenue in innovation, as reported by Harvard Business Review.
• Organizations that are above-average in gender diversity and engagement outperform their competitors by 46%-58%, according to Fast Company.

Inclusive workplaces that celebrate diverse perspectives not only attract the best talent but also drive engagement and innovation in the long run.

6. Employee Advocacy and Brand Ambassadorship

Employee advocacy is a marketing strategy that utilizes employee networks, think friends, family, and social media, to increase awareness and promote a company and its products/services. Employee advocacy has emerged as a potent tool for trust and brand loyalty. Unlike traditional influencer marketing, advocacy is based on authentic, personal networks. Research shows that:

• Employee networks have 10X more connections than a company has followers, according to LinkedIn Research.
• 76% of the consumers believe in content shared by employees rather than the content directly shared by the companies, as per Adweek.

Employee sharing experiences and achievements would enable organizations to create authentic brand ambassadors who strengthen loyalty and improve their reputation outside.

7. Leveraging Technology to Enhance Engagement for the Human-Tech Balance

As the adoption of AI accelerates, organizations are reassessing how technology can support human roles. While 34% of marketing teams use Generative AI daily, only 12% of HR teams are using it, reflecting a cautious yet deliberate approach. According to ADP, 87% of executives believe roles will be augmented—not replaced—by AI.

This balance between human empathy and technology efficiency is crucial for any engagement. In this regard, AV technology for businesses can really play a vital role in enhancing the sort of balance one could imagine by availing immersive experiences, for example, unified communication systems, collaboration spaces, meeting rooms, and interactive feedback systems. In this manner, employees would not feel bored while integrating seamlessly with technological change, promoting innovations and collaboration.

Conclusion

Work is changing, and so are the types and forms of employee engagement and loyalty, which are profoundly affected by expectations, workplace dynamics, and technology. Organizations that anticipate these trends—hybrid work, well-being, personalization, L&D, diversity, advocacy, and tech integration—will assist employees to adapt and motivate them to develop a future-ready workforce.
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