When we hear that employment and income in Brazil are at record highs, it’s tempting to picture a workforce that’s happier than ever. Unfortunately, new data paints a very different picture: employee engagement is at its lowest point in three years, with a staggering 61% of workers saying they are unmotivated at work. This widespread disengagement could cost businesses up to R$77 billion each year in lost productivity and turnover-related expenses—a figure that represents almost 0.66% of Brazil’s GDP.
But what exactly is driving this wave of workplace dissatisfaction? And how can leaders reverse the trend? Let’s take a deeper look at the key findings from the 3rd edition of the Engaja S/A national engagement survey, conducted by Flash in partnership with FGV EAESP, and explore actionable strategies for building a more engaged workforce.
The Hidden Price Tag of Disengagement
First, let’s break down the numbers. According to the survey, which included responses from over 5,300 professionals across Brazil:
| Scenario | Annual Cost (BRL) |
|---|---|
| Optimistic | R$ 64.3 billion |
| Realistic | R$ 77 billion |
| Pessimistic | R$ 89.6 billion |
This massive financial drain comes not just from absenteeism, but from a more insidious issue: “presenteeism.” Workers may be physically present but mentally checked out—so much so that 22% of actively disengaged employees report losing more than 5 hours of productivity every day.
Quick Stats at a Glance
- 61% of employees feel unmotivated at work
- Estimated disengagement costs: R$77 billion per year
- Productivity loss equals 0.66% of GDP
- 18% experience daily negative mental health symptoms
- 6 in 10 employees are considering quitting
- For the first time, pay and benefits are not the biggest complaint—purpose and flexibility matter more
For further insights, check out: Growth Secrets of Brazil’s Best Companies to Work For.
Dissatisfaction and the Purpose Gap: Why Money Isn’t Enough
Post-pandemic, Brazilian corporations initially embraced more flexible work policies and prioritized employee well-being. Fast-forward to 2025, and things are changing: the economy faces high interest rates, inflation pressures worker incomes, and the rise of artificial intelligence is challenging traditional roles and expectations.
Researchers behind the Engaja S/A index say the “psychological contract” between employers and employees is showing signs of strain. There’s a widening gap between what workers expect (purpose, recognition, growth) and what organizations deliver.
What Motivates Employees Today?
Professor Renato Souza, HR specialist at FGV EAESP and study co-author, explains there are two types of motivation:
- Extrinsic factors (pay and benefits): Their absence increases dissatisfaction, but their presence won’t necessarily boost engagement.
- Intrinsic factors (meaningful work, purpose): These are now stronger drivers of motivation and satisfaction.
The survey highlights that a sense of meaning and a positive work environment have a far greater impact on engagement than financial rewards. In fact, 44% of employees now report satisfaction with pay and incentives—up three points from the previous year—yet overall motivation continues to drop.
Workers crave:
- Autonomy in how they do their jobs
- The ability to see the impact and purpose behind their work
- A balanced life, with time for personal projects and flexible hours
For more socio-economic context, see: How Brazil Reached 8 Million Negative CNPJs and 80 Million People in Debt.
“Present But Not Engaged:” Presenteeism’s Quiet Toll
One of the most concerning findings is the rise of presenteeism. Employees may show up and clock in—but they’re not mentally or emotionally engaged with their work. Survey data reveals that:
- 22% of disengaged workers admit to wasting over five hours per day due to lack of motivation.
- This inefficiency adds a further R$6 billion to annual productivity losses, due to self-reported wasted hours rather than systemic inefficiencies.
Leadership Burnout: A Critical Weak Link
It’s not just front-line employees who are disengaged—leaders are feeling it, too. In fact, middle and senior management reported the sharpest decline in engagement over the past year. Fatigue, anxiety, and insomnia are on the rise:
- 78% of executives and managers deal with some form of anxiety
- 74% report recurring fatigue
- Many leaders now question their own career trajectory and organizational purpose
If leaders are burned out and demotivated, it’s nearly impossible for them to inspire or support their teams. For further reading on leadership best practices, read: 4 Simple Leadership Practices to Boost Team Performance.
How Can Companies Spark Engagement Again?
Based on the research, a successful turnaround will require significant organizational changes—beyond just pay increases.
5 Key Strategies to Boost Employee Engagement
- Invest in Motivation Programs. Proactively addressing engagement can mitigate multi-billion dollar productivity losses due to disengagement, presenteeism, and turnover.
- Redefine Purpose at Work. Strengthen the psychological contract by promoting meaningful work, autonomy, and regular recognition.
- Champion Employee Well-being. Prioritize mental health and work-life balance—especially for leaders and managers under strain.
- Increase Flexibility. Embrace flexible scheduling and benefits instead of rigid, outdated processes. Customization is key to modern engagement.
- Make Retention a Strategic Focus. With salaries more standardized, dimensions like purpose, autonomy, and well-being are critical to keeping top talent.
Engaging Factors by Role: What Really Matters?
Based on survey ratings, here’s what employees and leaders value most (scale: 1=”Strongly Disagree” to 5=”Strongly Agree”):
Leaders
- Camaraderie: 4.36
- Relationships: 4.28
- Trust in leadership decisions: 4.27
- Opinions valued: 4.26
Managers
- Camaraderie: 4.36
- Role fit: 4.16
- Relationships: 4.13
- Open, diverse environment: 4.09
Employees
- Camaraderie: 4.14
- Open, diverse environment: 3.92
- Role fit: 3.89
- Relationships: 3.85
Factors that scored lowest included time for personal projects, feedback culture, and variable compensation.
Conclusion: Rebuilding Engagement, One Step at a Time
Brazilian organizations stand at a crossroads. Despite strong employment and income numbers, a lack of motivation is silently eroding productivity and morale across industries. Real change requires more than financial incentives—employees want flexibility, meaningful work, well-being, and authentic connections. Leaders must be equipped and supported, not just expected to inspire.
Ready to take action? Evaluate your workplace engagement strategies, invest in mental well-being, and reimagine work as a shared journey toward purpose—not just profit. Want to learn more? Check out research from FGV EAESP and start building a more engaged, productive workforce today.
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