Jodi Kovitz is the chief executive officer of the Human Resources Professional Association (HRPA)
It is time for Canada to inspire, build confidence in our future and empower our people.
Across boardrooms and industries, we are making daily decisions about productivity, cost control and flexibility that, together, could be eroding the belief systems of our people. We may be draining purpose from work, replacing inspiration with compliance, and mistaking attendance for engagement. If that continues, we risk not just damaging culture, but quietly dismantling Canada’s economic engine – employee engagement.
Global research shows that only 21 per cent of employees are engaged at work, down from 23 per cent a year earlier. The resulting loss of discretionary effort and innovation costs the world economy US$438-billion annually in productivity. Canada’s own productivity growth has slowed to one of the weakest levels in the OECD and disengagement is part of the story. When belief fades, performance follows.
This is not about meditation breaks or team lunches. During the pandemic, many organizations mistook wellness gestures for employee engagement. They substituted belonging with pizza Fridays and connection with video calls. True engagement is neither transactional nor ornamental. It is the deep alignment between people, purpose and performance. It is the feeling that one’s work matters to the organization, to society and to the economy at large.
People want to be inspired. They want to see how their contribution builds something enduring. Yet, too often, our systems teach managers to control, not to inspire; to measure hours, not outcomes; to communicate mandates, not meaning.
Another research study from Gallup confirms that 70 per cent of engagement variance is determined by the manager. That means engagement begins at the top. It is not a “people and culture” file to be delegated. When managers and executives model cynicism or panic, that tone cascades. When they model clarity, trust and recognition, engagement and performance follow.
At the same time, macro-level forces have made engagement harder. Employees are navigating inflation, rising debt and existential uncertainty about artificial intelligence and job security. In Deloitte’s Human Capital Trends 2025 report, the top employee demand is no longer flexibility or pay; it is purpose and stability. When leaders downsize without transparency, automate without context or manage by fear, they can erode confidence and decrease engagement.
Organizations that thrive in this climate are doing something simple but powerful: they are building confidence. This means creating systems of trust, fairness and recognition that empower people to do their best work and contribute to the organization’s long-term vision. In a world of volatility and change, confidence is the new currency of engagement.
For business owners and leaders, this is especially critical. In times of market uncertainty and constraint, fuelling your business requires confidence in long-term growth and vision, and confidence in people to make decisions, take initiative and drive results. Engagement and performance are born from this empowerment. PwC’s global workforce study reinforced that when people feel excited and motivated about what lies ahead, they’re far more likely to embrace change.
The O.C. Tanner 2024 Global Culture Report found that organizations with integrated systems of recognition, where appreciation, feedback and rewards are embedded into daily operations, see five times higher engagement and three times greater intent to stay than those relying on occasional or monetary rewards alone. Recognition and rewards tied to business strategy together create confidence. They tell people their work is seen, valued and meaningful. When employees feel empowered to act and confident that their efforts matter, engagement rises and organizations accelerate. Canadian organizations that intentionally design to build confidence in their teams’ purpose and business outcomes are improving morale and strengthening productivity – all in an effort to drive national competitiveness.
Accountability rounds out the equation for success. McKinsey’s research shows 87 per cent of workers report higher productivity when allowed to structure work around outcomes rather than rigid schedules. Autonomy fuels focus, while accountability maintains direction.
In a period of economic and technological upheaval, engagement has become the ultimate leadership test. The most effective CEOs, CHROs and boards are those who recognize that engagement is not about happiness. Engagement is about belief systems. Leaders who connect people to aspiration, align work to strategy, communicate with transparency and empower people build a confident workforce, in turn driving Canada’s growth and competitiveness in the years ahead.
Under HRPA’s Vision 2027, our focus is to Elevate the Human in HR. That philosophy extends beyond the HR profession to every sector. The human elements of trust, recognition, inclusion and confidence are the infrastructure of prosperity. When people feel inspired and empowered to contribute, productivity rises, innovation accelerates and resilience follows.
Canada cannot close its productivity gap through policy or innovation alone. Leadership must be at our core. Every decision to cut investment in people, to reduce transparency or to ignore engagement data has economic consequences. The cost of disengagement is not an abstract concept. It is validated in how it manifests in lower output, higher turnover, lack of innovation and declining competitiveness.
But the inverse is also true. When leaders choose to re-engage, to communicate purpose, to build confidence in their teams, and to reward progress, they ignite performance and rebuild trust in institutions. The impact scales far beyond one company. It strengthens our national fabric.
The future of Canada’s economy will be decided not only in capital markets and government budgets, but in how our leaders inspire belief inside their organizations. Engagement is not an HR metric. It is a measure of leadership, accountability and vision.
If we want a more productive, prosperous and inclusive economy, we must start by reigniting confidence in our businesses, leadership and our people at work. Because when people believe again, and when leaders build confidence in them and with them, Canada grows stronger.
This column is part of Globe Careers’ Leadership Lab series, where executives and experts share their views and advice about the world of work. Find all Leadership Lab stories at tgam.ca/leadershiplab and guidelines for how to contribute to the column here.