Employee engagement in India has experienced a significant downturn, plummeting to 19% in 2025 from 24% in the previous year, according to the second study in ADP Research’s newly refreshed “People at Work 2025” report series. This five-percentage-point drop marks the most substantial decline globally, starkly contrasting with the consistent growth observed in overall global engagement levels.
Rahul Goyal, Managing Director of ADP India and Southeast Asia, cautioned that this dip in workforce engagement could trigger reduced productivity and a potential exodus of talent. “Our research shows that flexibility and a sense of belonging can significantly influence employee engagement,” he stated. “Employees who feel connected, valued, and empowered are considerably more engaged.”
Goyal emphasised the need for companies to re-evaluate their strategies to boost engagement. “To enhance engagement, companies need to rethink their strategies by offering location flexibility, strengthening interpersonal connections, and investing in skills development. This is particularly critical for younger employees, who currently report the lowest levels of engagement. Adopting a proactive approach to employee engagement is essential for ensuring long-term business success.”
Location flexibility emerges as a key factor
The survey data highlights the importance of location flexibility in driving engagement. In India, 50% of employees work on-site daily, 36% follow a hybrid model, and only 14% work exclusively remotely. Interestingly, India ranks high globally, with 45% of employees reporting complete autonomy over their work location, second only to Egypt (47%). The study found a strong correlation between location flexibility and engagement, with employees having full control over their work location being significantly more engaged than those with less empowerment.
Globally, the trend leans towards more on-site work, with 56% of employees working on-site daily (a two-point increase from last year and an eight-point increase from 2022). Only 12% work fully remotely (a one-point decrease), and 32% operate in a hybrid model (a two-point decrease from the previous year).
Geographical disparities in engagement
The report also underscores how economic, social, and political conditions influence employee engagement across different markets. While the Middle East/Africa region witnessed the most significant gain in engagement, rising three percentage points to 25%, India experienced the sharpest decline.
Within India, on-site workers (21%) reported higher engagement levels compared to hybrid (19%) and remote (8%) workers. Notably, women in India (22%) showed higher engagement than men (17%). Age also played a role, with workers aged 40 to 54 being the most engaged (24%), while the 18-26 age group reported the lowest engagement (15%).
The power of team belonging
Recognizing that on-site work is unavoidable in many roles, the report emphasizes the importance of fostering a strong sense of team belonging as another crucial lever for engagement. While 33% of Indian workers reported being part of what they consider the best team (the second highest globally after Egypt), this figure has seen a 3% decline since last year.
Globally, while a vast majority (90%) of employees are part of a team, a significant disparity exists in engagement levels. A striking 52% of those who feel part of a high-performing team are fully engaged, compared to a mere 10% among those who do not feel part of such a team. This clearly highlights the significant impact of team dynamics on employee engagement.