The Gallup State of the Global Workplace 2025 report reveals the working world is under immense strain. Global employee engagement has declined to 21 per cent, down two percentage points from the previous year and matching the impact seen during the peak of the COVID-19 pandemic. The main driver? Manager burnout. Manager engagement fell from 3 per cent w to 27 per cent, while engagement among individual contributors remained unchanged. As manager engagement directly shapes team engagement and productivity, this trend is a critical warning for global leaders. The cost of disengagement is staggering, with an estimated US$438 billion in lost productivity globally each year.
Wellbeing on the Decline
The report also highlights a worrying decline in overall life satisfaction. Only 33 per cent of workers worldwide consider themselves “thriving” in life, a significant drop from previous years. Daily stress remains high, with 40 per cent of employees, while anger, sadness, and loneliness also continue to affect millions. Managers, especially younger and female leaders, have seen the sharpest declines in well-being, mirroring global patterns of burnout and disconnection. The decline in well-being is linked to workplace pressures and external economic factors, such as housing affordability, inflation, and shifting societal expectations around work-life balance.
A Path Forward Through Leadership
Despite these challenges, Gallup’s data suggests a hopeful path forward: Investing in managers. The report finds that managers drive 70 per cent of team engagement, yet fewer than half of managers worldwide have received any formal training. The impact of targeted support, therefore is significant – basic management training can halve active disengagement, while ongoing coaching can boost engagement by up to 28 per cent and improve manager wellbeing by as much as 32 per cent When leaders focus on manager development and provide support, training, and growth opportunities – they improve individual well – being and create healthier, more productive teams.
The Opportunity for Transformation
Gallup estimates that fully engaging the world’s workforce could unlock an astonishing US$9.6 trillion in productivity, equivalent to 9 per cent of global GDP. This potential highlights the urgency for organisations to reimagine how they lead and support people in an era of AI, digital disruption, and evolving employee expectations. The report calls on leaders to seize this moment: to close the growing gap between executives and employees, invest in their managers, and foster workplaces where people can thrive professionally and personally. The future of work depends on it.
(Source: Gallup State of the Global Workplace 2025 Report)
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