Professional Development Top Driver of Engagement: Study

Attracting and retaining top talent has become one of the most pressing challenges for CEOs and business leaders worldwide. With employee engagement falling and burnout on the rise, leaders must respond with strategies that build resilience and connection. And, the common denominator is the call for trust, connection, and support is consistent.

DHR Global’s 2026 Workforce Trends report underscores the power of culture as a driver of engagement and adaptability. Organizations that support flexibility, invest in learning and development, and lead with authenticity are better positioned to overcome today’s challenges and shape a brighter future for employees.

“Economic uncertainty, rapid AI advancements, and ongoing debates about when and where to work have made change a constant. In this environment, our role as leaders goes beyond navigating complexity. We also need to keep our people engaged and our organizations resilient in order to deliver continued growth and success,” says DHR Global CEO Priya Taneja.

Key takeaways:

·        Nearly all respondents say their workplace culture is somewhat (40%) or very (53%) important to their employee experience. But only 36% of workers feel their company culture is well-defined and drives performance, with many instead describing it as reactive and inconsistent across teams (46%) or vague and not actively shaped (15%). While 77% of C-suite leaders say culture is “very important,” only 37% of entry-level employees feel the same. Executives are also 2.5 times more likely than entry-level staff to view their company’s culture as well-defined.

·        Nearly one-third of respondents (31%) chose “a stronger, more purposeful workplace culture” as one of the Top 3 improvements they want from their employer over the next year.

·        Employee engagement dropped significantly year-over-year, with just 64% of workers describing themselves as very or extremely engaged, down from 88% in 2025. This trend is consistent across regions, with engagement lowest in Asia (59%), and slightly higher in North America (67%) and Europe (68%).

·        Professional development continues to be the top driver of engagement (71%), ahead of remote/hybrid work (63%) and GenAI tools (55%).

·        As engagement declines, burnout remains a major challenge among employees, with 83% of workers feeling at least some degree of burnout, consistent with 2025 (82%). The issue is most pronounced in the retail (62%), technology (58%), and healthcare (61%) industries where moderate to extreme burnout is highest.

·        Associates (62%) and entry-level employees (61%) are the most likely to report reduced engagement due to burnout, compared to just 38% of C-suite leaders, 55% of VPs, 44% of directors, and 48% of managers.

·        Over the past year, 39% of employees reported noticeable productivity gains from AI tools, with the highest impact in Asia (44%), followed by Europe (40%) and North America (33%).

·        Organizations are responding by adjusting learning and development priorities (34%), shifting more responsibilities to strategy and critical thinking (27%), and creating new roles to oversee AI systems (25%).

·        Despite AI’s growing influence, most employees are still waiting for guidance on what the technology means for their daily roles and skills. Only 34% say their organization has already communicated this information “very clearly.”

·        24% of workers ranking a clear plan for how AI will affect their job among the Top 3 changes they want this year.

·        Most are prioritizing deep expertise in a specific area (35%), while others are focusing on broader cross-functional knowledge (29%), soft skills like communication and leadership (22%), or AI and data literacy (13%).

·        Half of employees (52%) working in tech say their company has been very clear about AI’s impact, the highest of any sector surveyed. Tech employees are also most likely to report a significant engagement boost from GenAI tools (37% vs. 14-23% in other sectors), signaling a clear line between AI strategy and benefits.

·        Over the past two years, 38% of employees have been directly impacted by return-to-office mandates, yet only 34% fully support their organization’s approach. Nearly a quarter (23%) somewhat or strongly oppose it.