State of Engagement 2026 Report |
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The cost-of-living crisis is a heavy, unavoidable shadow looming over us all. But while employers are grappling with budgets, our latest Best Companies State of Engagement report research reveals a far more insidious and expensive internal crisis: a sharp decline in employee wellbeing driven by a perception of being unfairly treated and unsupported.
Our analysis of the feedback from over 145,000 employees over the past year shows that the Fair Deal factor - the employee's perception of fair compensation, support and treatment - saw the steepest decline of all of the 8-Factors that make up the Best Companies Methodology this year. Every single statement within this factor dropped in score.
If you think the solution is simply issuing bigger pay cheques, think again.
While 78% of employees are reportedly stressed due to financial pressures1, the data shows this is just the first falling domino. This external economic strain is now compounding internal concerns about job security, excessive workload and work/life balance.
The result? A similar decline in Wellbeing, with over half of organisations surveyed seeing their scores plummet.
In fact, the statement, “Most days I feel exhausted when I finish work”, was the lowest scoring statement across the entire methodology.
Our report strongly indicates that the Fair Deal and Wellbeing issues are not siloed problems; they are symptoms of a deeper, organisational flaw that doesn't require a massive budget to fix.
A key strategic driver of negative wellbeing is the pervasive feeling of constant upheaval and a reactive work environment.
The statement, “This organisation is more reactive than proactive” is now one of the lowest-scoring statements overall. When your organisation is perceived as constantly putting out fires and subject to sudden changes, it directly fuels employee stress, compounds workload pressure and accelerates a sense of a lack of work/life balance.
The most powerful, non-budget-intensive step an organisation can take to reduce internal pressure and improve wellbeing lies in creating Organisational Clarity.
When employees lack Organisational Clarity on priorities, strategy or even their own roles, they are thrown into a reactive cycle that fuels anxiety and drops engagement. By focusing on increasing clarity, organisations can empower employees to manage their work - and their stress - far more effectively.
Our full State of Engagement 2026 report delves into the critical connections between these factors and provides a clear strategic roadmap for reversing the current trends and removing existing pressures to protect both your employees and your bottom line.
