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Retention is Rising – But Engagement is Crashing

By July 27, 2025 No Comments

Retention is Rising – But Engagement is Crashing

In our last blog, we flagged a growing paradox in the Australian workforce – and the latest 2025 data confirms it: employee retention is up, but engagement and workplace happiness are sinking fast.

According to a new Deloitte study of over 2,000 Australian employees and HR leaders, some worrying trends have emerged:

🔻 Engagement is at an all-time low

🤯 Managers are under pressure as performance drops

🙌 Recognition and work-life balance are the top drivers of employee happiness

So what’s really happening? The tough job market is keeping people in their roles – not because they’re happy, but because it feels too risky to leave. For businesses, this hidden disengagement shows up in higher sick leave, lower productivity, and poorer customer experiences – right when margins are tight and competition is fierce.

While no single tool can fix the problem, recognition platforms like Brownie Points can be a powerful weapon in your retention and engagement toolkit. When employees feel valued and connected to your mission, they’re less likely to check out – emotionally or literally.

Do your people feel seen, supported and inspired?

If you don’t have a clear engagement strategy in place, your business could be vulnerable when the talent market turns.

Tony Delaney, CEO, Brownie Points

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