Gallup’s 2025 State of the Global Workplace report serves as an important wake up call for the business world. Global employee engagement dropped from 23% in 2024 to 21%, with further decline expected in 2025. While the numbers may seem small, the impact is enormous, translating into an alarming $438 billion loss in productivity for the global economy.
What makes this drop especially concerning is that managers are just as disengaged. The very leaders who are expected to inspire motivation, are struggling with their own. Engagement among managers fell from 30% in 2023 to 27% in 2024, with sharper declines among younger and female leaders. Behind this trend lies a growing workload, constantly shifting expectations, and the relentless pressure to balance work and personal life. Younger leaders often feel more vulnerable at the start of their careers, while women leaders continue to face the weight of the glass ceiling alongside multiple responsibilities. For a deeper dive into how family and caregiving responsibilities disproportionately affect women, and how this plays out in the economy, you can read our article on “The Invisible Burden of the Care Economy”.
Falling engagement is more than just a cultural issue. It poses a direct threat to organizational performance. Low engagement doesn’t just undermine productivity, it also decreases creativity, innovation, and long-term sustainability. A disengaged employee views work as a task to complete. An engaged employee however, creates value, strengthens company culture, and contributes to lasting success.
How Can Engagement Be Restored?
The first step is to stop treating engagement as something measured only through “employee satisfaction” surveys and start embedding it as a core strategic priority. Since employee engagement is directly shaped by managerial engagement, leaders must come first. A manager with low motivation cannot possibly motivate their team. Supporting leaders, therefore, has a ripple effect, boosting not just their own energy and performance, but that of their entire teams. Key drivers of engagement include flexible practices that support work-life balance, inclusive and trust based leadership, investment in personal development, and creating a culture of open communication.
The real risk for organizations is not just the loss of productivity but also the decreasing long-term resilience. In environments where employees don’t feel valued, creativity declines, innovation slows, and company culture suffers. As a result, talent retention weakens, turnover rises, and organizational sustainability comes under threat. Research shows that engagement impacts far more than economic outcomes. It directly influences corporate reputation, customer satisfaction, and competitiveness in the market.
That’s why employee engagement must be treated as a strategic priority that shapes the future.
