Quick Summary
Employee engagement is declining and it is time for organizations to start taking steps to make it better.
India is facing a quiet crisis, and it’s unfolding inside office cubicles, Zoom calls, and Slack threads.
According to the 2025 ADP Research Institute report, employee engagement in India has plummeted to just 19%, down from 24% in 2024. This marks the steepest global drop and raises serious concerns for business leaders and HR professionals.
As Rahul Goyal, MD of ADP India, notes, “Low workforce engagement could lead to reduced productivity and a talent exodus.” Add to this the fact that half of India’s workforce is considering switching jobs, and 30% report daily stress, and you have a recipe for organizational instability.
It's clear: paychecks are no longer the only priority. To truly retain and empower talent, Indian employers must pivot from transactional engagement to building employee-centric workplaces rooted in well-being and care.
Let's dive into how you can make your employees more engaged and what you can do make this happen.
What is employee engagement?
Employee engagement helps define the employee's commitment towards the organization's goals. It measures the passion, enthusiam of the employees to take your company toward growth.
How can HRs improve
What’s missing in today's workplaces
Indian HR policies have long revolved around salary packages and statutory compliance. But today’s workforce expects more. Employees want workplaces that support their mental, physical, and financial well-being, not just once a year during appraisals but every single day.
Here are some of the most common gaps:
- Mental health is still taboo: Despite rising awareness, access to therapy or emotional wellness support remains either unavailable or under-communicated.
- Benefits exist but are invisible: Employees often don’t know how to access perks like wellness sessions, insurance coverage, or preventive health checkups.
- Inflexibility stifles autonomy: Only 14% of Indian employees work remotely full-time, and rigid work environments continue to erode trust and productivity.
- Lack of connection: Employees thrive when they feel seen and heard. Yet, many still struggle to build a sense of belonging, especially in hybrid or large-scale organizations.
Why employee well-being is important for organizations
Globally, 88% of employees say workplace well-being is just as important as pay. What was once considered a “nice-to-have” is now a strategic necessity.
Companies that prioritize well-being see:
- Higher productivity
- Lower absenteeism
- Improved retention and loyalty
Ways you can improve employees' well-being
- Health initiatives that address physical, mental, and financial wellness.
- Trained managers who can identify burnout and encourage open conversations.
- Flexible work models that give employees autonomy and reduce daily stressors.
Important role of Employee Health Insurance
One of the most powerful tools to demonstrate care is employee health insurance. It's no longer just a compliance checkbox. A thoughtful policy can serve as the foundation of a caring culture.
Why it matters
- Covers pre-existing conditions from day one.
- Offers mental health consultations and telemedicine access.
- Protects families, not just employees.
- Comes with tax benefits and long-term savings.
- Signals trust, stability, and commitment from employer to employee.
Leading platforms like Pazcare make it easy for HRs to implement customizable, scalable group insurance plans that are simple for employees to understand and use.
How Mental Health Benefits Work
Even when mental health support is technically available, it's often underutilized. Why? Because social stigma, lack of awareness, and poor communication prevent employees from accessing the help they need.
Steps HRs can take
- Normalize mental health conversations during one-on-ones and team meetings.
- Ensure confidential and stigma-free access to therapy or counseling services.
- Encourage leaders to model vulnerability and empathy.
Turning the Corner: What HR Leaders Can Do
Ready to build a truly employee-first workplace? Start with these tangible actions:
Audit existing benefits: Ask: Are we offering benefits that employees actually use and value?
Champion mental health: Conduct workshops, train managers, and keep resources visible and accessible.
Simplify access to benefits: Provide guides, onboarding sessions, and self-service tools to ensure no one’s left confused.
Support flexibility: Move away from a one-size-fits-all model. Flexibility drives trust and reduces attrition.
Measure and improve: Run regular engagement and well-being surveys using tools like Pazcare’s Employee Satisfaction Survey Template.
Want to get compensation conversations right? Try our Salary Hike Calculator to stay competitive and fair.
Key Takeaway: Prioritizing employee well-being, mental health, and group health insurance is the key to improving engagement and building a resilient, people-first workplace in India.
Conclusion: Building a Truly Employee-Centric Workplace
India’s engagement numbers are a red flag, but also a call to action. The solution doesn’t lie in perks alone, but in creating a workplace culture that places employee well-being at the center.
When companies invest in group health insurance, mental well-being programs, and flexible work options, they create workplaces that not only attract top talent, but keep them happy, productive, and loyal.
Because ultimately, a healthy workforce is a high-performing workforce.
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