The Psychology of Engagement: What Makes Employees Thrive?
Why do some employees flourish while others quietly disengage? The answer often lies in the psychology of workplace engagement and it’s not as mysterious as it seems.
Research continues to show that the key drivers of employee engagement are deeply psychological. Employees who feel valued, trusted, and led by authentic leaders are more likely to be energized, productive, and loyal. In fact, a growing body of work highlights that authentic leadership, rooted in trust, transparency, and integrity directly boosts employee work engagement (WE) and overall well-being (WW).
A recent study by Baquero (2023) offers a compelling model using social contagion theory to explain this relationship. The findings reveal that when leaders exhibit relational transparency (RT), an internalized moral perspective (IMP), balanced processing (BP), and self-awareness (SA), they spark meaningful levels of employee trust (TL). Trust acts as a mediator, positively impacting employee engagement, while workplace well-being acts as a moderator intensifying these effects across the organization.
“Employees in the millennial generation dominate many hospitality industry roles. Leadership practices that take account of this group’s needs like work-life balance, career development, and emotional well-being—help increase job satisfaction and WE” (Baquero, 2023).
Engagement Starts with Trust
Trust is not just a soft skill it’s a strategic asset. Research shows that when employees trust their leaders, they exhibit stronger work behaviors, higher morale, and greater motivation to go above and beyond. In the hospitality industry, for instance, a strong link was found between trust in leadership and job commitment. Leaders who are honest about their strengths and weaknesses create a culture where employees feel safe, heard, and inspired to contribute (Baquero, 2023).
In addition to trust, moral framing also plays a significant role in engagement. Maneethai et al. (2025) argue that employees interpret belonging efforts through moral lenses—such as care, fairness, loyalty, and authority which shape their reactions to engagement and inclusion initiatives. If the moral framing of workplace efforts doesn’t align with an employee’s own moral perspective, it may lead to disengagement. However, when efforts are perceived as authentic and morally resonant, employees are more likely to invest emotionally and behaviorally in the workplace.
Authentic Leadership in Action
Authentic leadership fuels positive employee outcomes by fostering ethical behavior and fairness. One study cited in Baquero’s work found that employees who perceive their leader as sincere and fair develop more positive attitudes and display greater engagement. This is especially vital in psychologically vulnerable groups such as Generation Z, where authenticity and trustworthiness are prerequisites for psychological safety and motivation.
The Role of Workplace Well-Being
Workplace well-being is more than wellness perks it is about emotional and psychological safety. When workplace environments support emotional security, employee engagement thrives. Baquero (2023) notes that authentic leadership leads to “pleasurable or positive emotional states” in employees, driving both engagement and job satisfaction.
Recent findings reinforce this connection. Lara-Moreno et al. (2025) identified what they term the Exhaustion Triangle, highlighting the interconnected nature of psychosocial risk factors, employee engagement, and burnout. Their research emphasizes that burnout and engagement are not isolated experiences but operate together to significantly impact workplace well-being. High levels of psychosocial risk factors and burnout were found to correlate negatively with engagement, while strong engagement was associated with better job satisfaction and emotional health.
“Authentic leadership is associated with higher-order constructs, entailing moral values and integrity features that correlate positively with emotional happiness and lead to motivation and WE” (Baquero, 2023).
So, What Does This All Really Mean?!
At the core, this research tells us something simple but powerful: people do their best work when they feel safe, supported, and seen.
It’s not just about salaries, perks, or job titles about how people are treated and led. When employees trust their leaders, when they feel their work matters, and when their well-being is prioritized, they are more likely to show up with energy, motivation, and a willingness to grow. That’s what engagement looks like.
On the flip side, when leaders are inconsistent, dismissive, or fail to create a healthy work environment, employees withdraw. They might not quit on paper, but they quit emotionally. That’s when burnout creeps in, productivity drops, and turnover increases.
This means that good leadership isn't just a nice-to-have, it's a business necessity. If you want better performance, stronger teams, and long-term success, you have to lead with intention, integrity, and empathy.
Authentic leadership, trust, and emotional well-being aren’t soft concepts. They are the building blocks of thriving workplaces, and the research proves it!
If you are wondering how to take this insight and apply it in your own leadership here’s where to begin:
Practical Takeaways for Leaders
If you are a leader looking to increase engagement on your team, here are a few evidence-based takeaways:
Be transparent: Share your thoughts and admit your limits. It builds trust.
Lead with fairness: Employees who feel they are treated fairly will reciprocate with commitment.
Prioritize well-being: Emotional safety fosters energy, collaboration, and retention.
Cultivate self-awareness: Great leaders know how their actions impact others.
When engagement is viewed through a psychological lens, it becomes clear: Leadership isn't just about performance, it’s about people. And people thrive when trust, authenticity, and emotional well-being are part of the culture.
References
Baquero, A. (2023). Authentic Leadership, Employee Work Engagement, Trust in the Leader, and Workplace Well-Being: A Moderated Mediation Model. Psychology Research and Behavior Management, 16, 1403–1424. https://doi.org/10.2147/PRBM.S407672
Lara-Moreno, R., Ogallar-Blanco, A., Guzmán-Raya, N., & Vázquez-Pérez, M. L. (2025). The Exhaustion Triangle: How Psychosocial Risks, Engagement, and Burnout Impact Workplace Well-Being. Behavioral Sciences, 15(4), 408. https://doi.org/10.3390/bs15040408
Maneethai, D., Johnson, L. U., Atwater, L. A., & Witt, L. A. (2025). Enhancing engagement in workplace belonging efforts: Why moral processes matter. Industrial and Organizational Psychology, 1–18. https://doi.org/10.1017/iop.2024.60