Half of employees feel disconnected, undervalued at work

NEW YORK, NY  — As the U.S. job market shows signs of stagnation, characterized by reduced hiring activity and lower quit rates, new MetLife data indicates employees are quietly cracking, exhibiting heightened feelings of disconnection and undervalued at work. According to the company’s latest research, just over half (53%) of employees report feeling valued, a 10% decrease compared to last year, and employee engagement has dropped to 66%, down 6% from 2024.

While more employees are staying put—according to the U.S. Bureau of Labor Statistics’ latest report¹—that doesn’t necessarily mean they’re happy at work. MetLife’s study finds that despite 75% of employees saying they plan to remain with their current employer over the next year, up 4% from 2024, disengagement is on the rise with 39% of the workforce, up 3% from 2024, feeling burned out and 56% feeling less connected to work.

“We’re at a critical moment where employers have the chance to do more than just lift morale, they can drive real impact,” said Todd Katz, head of Group Benefits at MetLife. “When organizations 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.”

MetLife’s research reinforces this connection, finding employees who understand and are satisfied with their benefits are 1.4 times more likely to feel engaged and 1.2 times more likely to be productive at work. These results emphasize how benefits, when prioritized as part of the broader employee experience, can be a powerful lever for driving meaningful workplace outcomes.

While employees are showing greater interest in benefit offerings, the latest insights also find gaps in employee interest and enrolled coverage, specifically with Accident & Health (A&H) products. For example, 90% of employees note they are interested in Accident and Critical Illness insurance, yet only 32% and 26% currently own it, respectively; similarly, 86% are interested in Hospital Indemnity, however ownership remains at 26%. Closing this gap not only helps to provide protection but it can also drive outcomes, as this research shows employees who own at least one A&H product are 12% more satisfied and 6% more loyal at work.

This coverage gap may in part be due to lack of understanding, which remains a major barrier as only 57% of employees fully understand what their benefits cover, and 72% want their employer to provide benefit communications that are tailored to their needs. As Open Enrollment approaches, employers have a timely opportunity to close this gap, empowering employees with clearer, more personalized benefit comprehension and utilization support that drives engagement and loyalty.

“We’re at a crossroads where employees recognize the value of benefits, yet many still don’t fully understand what’s being offered,” said Todd Katz, head of Group Benefits at MetLife. “This is a moment for employers to rethink how benefits and wellness programs 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.”

For resources and information to help employees navigate Open Enrollment, visit metlife.com/open-enrollment, to learn more about MetLife’s benefit decision support tool, visit upwise.com.

Research Methodology
The latest wave of MetLife’s 23^rd Annual U.S. Employee Benefit Trends Study was conducted in June -July 2025 and was fielded by Strat7 – a global strategy, insight and planning consultancy. The survey included 2500 interviews with full-time employees, aged 21 and over. All employees were based in the U.S. and were nationally representative of the U.S. Data in this release was collected as part of Wave 3 and was not reported in MetLife’s 23^rd Annual U.S. Employee Benefit Trends Study.