Employee engagement in professional services: why now is the time to rethink your people strategy

The professional services sector is facing a period of uncertainty. In the UK, legal and professional services firms are navigating a cautious and slow-moving market. While the US shares many of these challenges, this article focuses on the UK and how businesses can use this time to strengthen their people strategy.

Despite the current climate, one thing remains clear: employee engagement is more important than ever. In fact, it may be the most critical factor in determining whether your business emerges from this period stronger and more resilient.

Why employee engagement matters now more than ever

Employee engagement is not just a buzzword. It is a measurable, strategic driver of performance, retention and profitability. According to Gallup’s State of the Global Workplace: 2025 Report, global employee engagement fell by two percentage points in 2024, dropping from 23% to 21%. This decline cost the global economy an estimated $438 billion in lost productivity. Highly engaged employees are more productive, more loyal and more likely to deliver exceptional customer satisfaction. In contrast, low engagement can lead to higher turnover, lower morale and a negative impact on your bottom line.

In professional services, where people are your product, the stakes are even higher. Engaged employees are more likely to stay, grow and contribute to a high-performing culture. They are also more likely to advocate for your brand, both internally and externally.

The engagement gap is growing

Since the pandemic, many businesses have struggled to maintain the engagement levels they once had. The optimism of 2021 and 2022 has faded, replaced by caution and cost-cutting. Initiatives that once supported employee well-being, career development and flexible work have been scaled back or paused altogether.

This shift has created a growing gap between what employees need and what businesses are offering. Development opportunities, career progression and work-life balance are no longer guaranteed. And yet, employees still expect them.

The result? Disengagement. And in a market where talent is still quietly on the move, that’s a risk you can’t afford to ignore.

The recruitment experience is part of the problem

Hiring has become more rigid. Many firms are only willing to consider candidates who meet every requirement on paper. This narrow approach not only limits your talent pool but also sends a message that your business is not open to growth or innovation.

Worse still is the candidate experience. Many applicants never hear back. Others are left in limbo after interviews. This lack of communication damages your employer brand and undermines your employee engagement strategy before someone even joins your team.

Using specialist human resources recruitment and executive search consultancies, like Frazer Jones, can ensure every candidate receives clear, timely communication. It is part of our job to protect your employer brand and help you build a reputation as a company that values people.

Retention is your most cost-effective strategy

Replacing employees is expensive. It takes time, money and resources to find the right fit. In a cautious market, investing in employee retention is not just smart, it’s essential.

Even with limited budgets, there are practical steps you can take to improve employee satisfaction and reduce turnover:

• Offer meaningful development opportunities
• Create clear pathways for career progression
• Prioritise employee well-being and work-life balance
• Use engagement surveys and focus groups to listen to your team members
• Recognise and reward contributions regularly
• Review and refine your pay strategy to ensure it remains competitive and aligned with market expectations, a key driver of employee engagement. For insights into current compensation trends, you can download our 2025 HR salary guide.

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These initiatives don’t just boost morale. They create a workplace culture where people feel valued and supported. And that has a direct, positive impact on your business strategy and long-term success.

Measuring what matters

To improve employee engagement, you need to measure it. Engagement surveys, real-time feedback tools and performance management metrics can help you understand what’s working and where you need to improve.

Look at benchmarks across your industry. How do your engagement scores compare? Are your employees more or less satisfied than those at similar firms? Use this data to inform your decisions and shape your initiatives.

Remember, what gets measured gets managed. And when it comes to employee engagement, the right metrics can lead to better decision-making, stronger leadership development and a more engaged workforce.

Preparing for the future of work

The future of work is not just about technology or hybrid models. It’s about people. It’s about creating a work environment where employees feel connected, supported and inspired to do their best work.

That means investing in onboarding, flexible work policies, and employee development. It means listening to your team members and responding to their needs. And it means building a company culture that reflects your values and vision.

At Frazer Jones, we work with HR teams and senior leaders to design strategies that align with your goals and your people. Whether you need help with talent management, leadership development or improving your employee experience, we bring deep expertise and a personal, consultative approach.

Final thoughts

Employee engagement is not a luxury. It is a necessity. In professional services, where your people are your greatest asset, how you treat them today will shape your success tomorrow.

Now is the time to rethink your people strategy. To invest in your employees. To build a workplace culture that supports well-being, growth and performance.

Because when the market recovers, and it will, the businesses with engaged employees will be the ones leading the way.