In the fast-paced world of finance, employee engagement is more than a morale metric—it’s a tangible driver of performance. Yet only 21%–31% of finance professionals report feeling truly engaged, with U.S. levels sinking to a decade low of 31% in 2024. Strong leadership holds the key to reversing this trend and unlocking extraordinary gains.
Employee engagement in banking, insurance, asset management and related fields is typically assessed through pulse surveys, eNPS scores and comprehensive annual reviews. These tools capture dimensions like pride, advocacy, motivation and intent to stay.
Global benchmarks reveal just 23% of employees are highly engaged, 62% remain unengaged, and 15% are actively disengaged. Within finance, hybrid and remote workers boast engagement rates of 33%–35%, compared to a mere 25% for fully on-site teams. This gap underscores the rising value of flexible work.
Research shows that direct manager influence accounts for 70% of engagement variance at the team level. Effective leadership correlates with:
Furthermore, organizations with strong leadership achieve a 24% rise in engagement, 22.5% better goal alignment, and a nearly 20% improvement in customer focus. The ripple effects extend from lower compliance risks to enhanced risk management.
Top-performing finance leaders invest in four core behaviors to boost team motivation and loyalty:
Empathy alone makes employees 76% more likely to feel connected, while those who trust their leaders are 14 times more engaged. When leaders make themselves visible—in town halls, mentoring sessions or volunteer events—engagement can soar to 87%, as demonstrated by firms like Northleaf Capital Partners.
Despite leadership’s proven leverage, engagement in finance continues to slide. Young professionals report even lower levels of motivation, often citing poor communication and scant recognition. Mandatory return-to-office directives risk further disengagement, while flexible models attract top talent.
Industry-wide, pride in the workplace, willingness to recommend employers, and intent to stay have all declined. With leadership cited as both a root cause and solution to these slumps, the onus is on executives and managers to act decisively.
Leaders who translate data into action see the greatest gains. Consider the following best practices:
Synchrony Financial’s employee experience overhaul serves as a prime example: 92% of its workforce now regards the workplace positively, driving high returns on capital and stronger competitive performance.
In finance, where margins and reputations hinge on peak performance, engagement is non-negotiable. Leadership isn’t a soft skill—it’s a quantifiable catalyst for profitability, productivity and retention. By championing onboarding and leadership visibility boost, embedding recognition and fostering psychological safety, finance organizations can aim for engagement rates above 70%—far exceeding today’s benchmarks.
Now is the moment for finance leaders at every level to step forward, leverage these proven strategies, and transform disengaged teams into passionate advocates of your firm’s vision.
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