A new study from Firstup suggests that employee engagement may no longer be the reliable indicator of workforce stability it once appeared to be. This follows the company’s State of Employee Engagement Report UK, which surveyed more than 3,000 workers across office-based, managerial, and hourly roles.
The results reveal a workforce that, on the surface, appears committed to their organizations. Yet beneath that engagement is a growing willingness to move on.
That sentiment cuts across job types and seniority levels, indicating that the issue is not confined to one segment of the workforce but may reflect broader structural challenges within organizations.
“This disconnect means that engagement alone is no longer a reliable signal of workforce stability,”
Bill Schuh, CEO of Firstup, said following the study.
A Workforce That Appears Engaged but Plans to Leave
Digging deeper into the report shows just how widespread the disconnect has become. Among office-based employees, 76% describe themselves as engaged or highly engaged at work. Managers report even higher engagement levels at 83%, while hourly workers come in slightly lower at 69%.
Yet across all these groups, almost half say they are likely to seek another job within the next year. Specifically, 48% of office-based employees, 50% of managers, and 47% of hourly workers say they are considering leaving despite their reported engagement.
So what is causing this rift? The research suggests that communication failures play a major role in creating this contradiction. Although most respondents said they receive updates from their organizations regularly, up to 76% reported missing important policy or procedural announcements.
Part of the issue lies in how messages are delivered. Employees frequently report that workplace communication is poorly prioritized or scattered across systems that do not align with how people actually work. Too many messages, too little time to process them, and uncertainty about where to find key updates were among the most common challenges.
The report also highlights growing strain on middle management. Managers remain the most trusted source of information for employees, but they are increasingly overwhelmed by the expectation that they will both deliver leadership messages and maintain team engagement.
In fact, 77% of managers reported challenges communicating with their frontline teams, and only 21% feel very confident that their current communication methods keep workers compliant.
Understanding the Engagement and Retention Gap
The research suggests that the engagement paradox may stem from deeper structural issues related to trust, recognition, and organizational communication.
Employees may feel connected to their work or colleagues, but that does not necessarily translate into long-term loyalty to their employer.
For frontline and hourly workers, disengagement often arises from feeling undervalued. Among hourly employees who reported being disengaged, 65% said they do not believe their employer cares about their well-being. Many also cited poor workplace culture, lack of recognition or rewards, and low trust in leadership.
When asked what could alleviate these feelings, communication was a recurring theme. Across roles, the top requests beyond pay were consistent: they want their organizations to show they care (50 to 55%), improve communication (42 to 54%), and provide better tools (37 to 44%).
“If organizations want to improve communication and drive critical business outcomes such as increased retention, productivity, and safety, they have to empower all employees with the right technology,”
Nathan Lowis, Managing Director for EMEA at Firstup, said.
The data also highlights the practical consequences of these gaps. Many office-based employees and managers said they spend several hours each week simply searching for basic information needed to do their jobs. Over time, that inefficiency can lead to frustration and disengagement even among workers who still consider themselves committed to their work.
Rethinking Communication for the Modern Workforce
Taken together, the findings suggest that employee engagement metrics alone may no longer provide a clear picture of organizational health. Workers can feel connected to their roles while still exploring opportunities elsewhere, particularly when internal communication systems fail to support them.
For HR leaders and executives, the report points to a need for more targeted and effective communication strategies. Information must reach employees in ways that align with how they actually work, whether that means simplifying channels, improving prioritization, or ensuring frontline teams have access to the same tools as office-based staff.
Equally important is reducing the pressure placed on managers. While managers remain trusted sources of information, relying on them as the primary communication link between leadership and employees may no longer be sustainable.
Organizations may need to invest in systems that deliver critical information directly while still empowering managers to provide context and support.
Improving communication infrastructure could also bring broader business benefits. The research links communication breakdowns to productivity loss, higher stress levels, and declining teamwork, all of which can ultimately affect retention.
Looking ahead, companies that treat communication as a strategic capability rather than a simple administrative function may be better positioned to retain talent.
