State of the Global Workplace: 2025 Report (Gallup)
The 2025 Gallup State of the Global Workplace report highlights several critical trends affecting employee engagement, managerial effectiveness, and overall workplace well-being.
Decline in Global Engagement
Employee Engagement: Global employee engagement decreased from 23% in 2023 to 21% in 2024, marking only the second decline since 2009.
Manager Engagement: Manager engagement saw a sharper drop, falling from 30% to 27%. Younger managers (under 35) and female managers experienced the most significant declines, at 5% and 7% respectively.
Economic Impact: This disengagement is estimated to have cost the global economy $438 billion in lost productivity in 2024.
The Crucial Role of Managers
Influence on Teams: Managers account for 70% of the variance in team engagement.
Training Deficit: Despite their influence, only 44% of managers have received formal management training.
Promotion Practices: Many managers are promoted based on technical skills rather than leadership abilities, with only 10% naturally possessing managerial talent.
Generational and Cultural Shifts
The “Great Detachment”: Younger workers, particularly Gen Z, are increasingly disengaged, leading to trends like “quiet quitting” and “quiet vacationing.”
Changing Priorities: This demographic values mental health, diversity, and work-life balance, often clashing with traditional workplace expectations.
Recommendations for Improvement
Manager Development: Investing in comprehensive training and coaching for managers is essential to enhance team engagement and productivity.
Regular Communication: Implementing consistent check-ins and clear expectations can bolster employee engagement.
Leveraging AI: Integrating AI tools, such as “coachbots,” can support managers in their roles, especially in hybrid work environments.
10 Strategies for Employee Engagement
Here are 10 effective strategies to increase employee engagement in 2025, tailored to current workplace dynamics and expectations:
1. Prioritise Manager Development
Train managers in communication, empathy, and coaching skills. Gallup’s 2025 report shows managers influence up to 70% of team engagement — yet many lack formal training.
2. Foster Meaningful Work
Help employees see the purpose in what they do. Align individual roles with broader company goals and social impact.
3. Embrace Flexibility
Offer hybrid and remote work options where possible. Allow flexible scheduling to support work-life balance — a top priority, especially for Gen Z and millennials.
4. Recognise and Reward Contributions
Use real-time feedback tools and recognition platforms. Celebrate individual and team achievements in meaningful ways (not just monetary).
5. Invest in Learning & Career Growth
Provide continuous learning opportunities (online courses, training, mentorship, stretch assignments). Create transparent internal mobility paths.
6. Empower Through Autonomy
Give employees ownership over their work. Avoid micromanagement; instead, set clear goals and let people decide how to achieve them.
7. Leverage Technology Thoughtfully
Use AI tools (like “coachbots”) to support managers and streamline repetitive tasks. Avoid tech overload by ensuring tools are purposeful and integrated.
8. Promote Psychological Safety
Encourage open communication and safe expression of ideas. Actively combat toxic workplace behaviours or exclusion.
9. Prioritise Wellbeing
Offer mental health resources, employee wellbeing programs, and burnout prevention initiatives. Encourage time off and create a culture that respects boundaries.
10. Gather and Act on Feedback
Use frequent pulse surveys and engagement check-ins. More importantly, take visible action based on employee feedback to build trust.
These approaches reflect not only best practices but also the evolving expectations of today’s workforce in a post-pandemic, AI-influenced, and values-driven work environment.
Contact us to talk more about practical ways to support and engage your leaders and people.