Around half of US employees feel disconnected or undervalued at work, according to a new study.
Just 53% of workers say they feel valued – that’s a 10-point drop from last year, revealed the findings from MetLife’s research. Engagement is slipping too, down to 66%.
The US labour market looks stable. Hiring is slowing and fewer people are quitting. But stability doesn’t mean satisfaction. Burnout is rising and morale is falling, according to the findings.
MetLife found that 39% of employees feel burned out – that’s up 3 points from 2024. More than half, 56%, say they feel less connected to their work. Still, 75% plan to stay with their employer over the next year. Many are staying and job hugging, but not fully engaged.
HEALTH BENEFITS MATTER
The study shows a clear link between benefits and engagement. Workers who understand their benefits are 1.4 times more likely to feel engaged. They are also 1.2 times more likely to be productive.
Interest in accident and health coverage is high. Ninety per cent want accident or critical illness insurance. Yet only 32% have any accident coverage, and just 26% are covered for critical illness. Hospital indemnity is also popular, with 86% interested in this health benefit. But only 26% have this coverage. Employees with at least one accident/health product are 12% more satisfied in their role, and 6% more loyal.
UNDERSTANDING THE BENEFITS GAP
A major barrier is understanding. Only 57% fully understand what their benefits cover. Seventy-two per cent want communications tailored to their needs. With open enrolment coming, employers have a chance to close the gap.
Clear guidance and personalised support can drive engagement and loyalty. As Todd Katz, head of Group Benefits at MetLife, said: “We’re at a critical moment where employers have the chance to do more than just lift morale, they can drive real impact.”
When organisations elevate how they support their people through thoughtful benefits and meaningful engagement, “they don’t just improve sentiment, they unlock the potential for stronger performance, deeper loyalty, and a more resilient workforce,” added Katz. “We’re at a crossroads where employees recognise the value of benefits, yet many still don’t fully understand what’s being offered.”
HOW EMPLOYERS CAN MAKE A DIFFERENCE
Katz believes this is a moment for employers to rethink how benefits and wellness programmes are positioned, leveraging benefit communications, tools and resources to ensure employees feel supported to make informed decisions that improve employee sentiment and ultimately drive stronger workplace outcomes.
If employers do nothing, disengagement could deepen. Productivity may fall. Hidden turnover may rise. Innovation could slow. But the upside is real. Benefits done well can improve satisfaction and loyalty. They can transform work culture. As open enrolment approaches, the moment calls for more than forms. It calls for connection.
MetLife’s research highlights an opportunity for employers to shift sentiment with the following clear steps:
- Clarity: Communicate benefits simply. Avoid jargon.
- Choice: Offer options that fit different needs and life stages.
- Education: Provide tools, webinars, and guidance.
- Empathy: Show employees they are valued. Trust is fragile.
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