The stark truth: employee engagement and wellbeing continue to decline worldwide

Keywords: wellbeing, engagement, mentalhealth, managers, leadership, transformation

Date: 29 April 2025, WorkLife Digital

The 2025 Gallup State of the Global Workplace report paints a stark picture: employee engagement and wellbeing continue to decline worldwide, with profound implications for productivity, retention, and the future of work. For business leaders, these findings are both a warning and a roadmap for action.

Key facts and statistics

1. Global engagement decline

Only 21% of employees worldwide are engaged at work, down from 23% the previous year - a drop equal to that seen during the COVID-19 lockdowns.

Engagement has only fallen twice in the past 12 years: in 2020 and 2024.

62% of employees are "not engaged," and 17% are "actively disengaged," meaning they are working against their organisation’s goals.

2. Manager engagement Is critical and falling

Manager engagement dropped from 30% to 27% globally.

Young managers (under 35) saw a five-point drop; female managers, a seven-point drop.

Only 44% of managers report having received management training.

Critically, 70% of team engagement is attributable to the manager. Disengaged managers lead to disengaged teams, which directly impacts productivity and profitability.

3. Wellbeing and life satisfaction are down

The percentage of employees who describe themselves as "thriving" in life has dropped to 33%.

Managers again saw the largest declines: older managers’ wellbeing fell by five points, female managers by seven.

Regions like the US/Canada and Australia/New Zealand, while still above global averages, have seen historic drops in wellbeing, likely due to factors like inflation and housing costs.

Half of engaged employees are thriving, compared to only a third of those not engaged.

4. Daily negative emotions are high

40% of employees globally experienced stress "a lot of the day yesterday."

21% reported anger, 23% sadness, and 22% loneliness.

5. Retention risks are growing

50% of employees globally are watching for or actively seeking a new job.

6. Regional variations

Engagement is highest in the US/Canada and Latin America/Caribbean (31%), lowest in Europe (13%) and Middle East/North Africa (14%).

Wellbeing ("thriving") is highest in Australia/New Zealand (56%), lowest in South Asia (15%) and Sub-Saharan Africa (18%).

What this means for business leaders

Productivity at stake: Gallup estimates that if the world’s workplace were fully engaged, it would add $9.6 trillion in productivity - equivalent to 9% of global GDP.

Manager burnout Is a systemic risk: As manager engagement and wellbeing decline, so does team performance, customer satisfaction, and ultimately, business results.

Retention and recruitment challenges: With half the workforce open to new opportunities, organisations risk losing talent, especially among younger and remote-capable employees.

Recommendations and strategies

The report identifies three evidence-based actions for leaders:

1. Build a culture of engagement and wellbeing

Make engagement and mental health a core business strategy, not an HR initiative. Best-practice organisations with high engagement see consistent gains in productivity and profitability across industries and regions.

Regularly measure engagement and wellbeing, and act on the data.

Foster a sense of mission, recognition, and connection - especially in hybrid and remote environments where loneliness and intent to leave are higher.

2. Invest in manager training and development

Ensure all managers receive basic role training. Only 44% currently do, yet training can halve the rate of active disengagement among managers.

Effective coaching skills can be taught: participants in manager training saw up to 22% higher engagement, and their teams’ engagement rose by up to 18%.

Ongoing development and encouragement can boost manager wellbeing by 32% - from 28% to 34% thriving, and up to 50% if development is actively encouraged.

3. Reimagine the role of the manager

Shift expectations from "boss" to "coach." Managers must be empowered to support, develop, and motivate their teams.

Provide resources and autonomy, especially as AI and digital transformation reshape work.

Recognise and address the unique pressures faced by young and female managers, who are experiencing the steepest declines in engagement and wellbeing.

Simple strategies to implement now

Mandatory Manager Onboarding: All new managers should complete a structured training program within their first three months.

Monthly 1:1s: Require managers to hold monthly one-on-one meetings focused on development and wellbeing, not just performance.

Wellbeing Check-ins: Integrate wellbeing and mental health surveys into regular employee feedback cycles.

The global workplace is at a crossroads. Declining engagement and wellbeing, especially among managers, threaten productivity and growth. Yet, the data also show a clear path forward: invest in managers, build a culture of engagement, and prioritise employee wellbeing. Organisations that act now will not only weather the coming disruptions but unlock the full potential of their people and their business

WorkLife Digital is a global mental-wellbeing consultancy driven by the mission to improve the sustainability of businesses. Our psychological wellbeing tool, Worklife Quotient (WL-Q), is modelled on cutting-edge scientific research and provides organisation-wide measurement and intelligence on the mental wellbeing levels and psychological resilience of staff. WL-Q also assesses the impact of organisational practices (i.e. people and culture, leadership styles, organisational purpose and values, social impact) that have a direct influence on staff wellbeing and provides strategic recommendations on addressing risks and promoting strengths.

For more information, get in touch at lisa@worklife.digital

REFERENCES

Gallup (2025). State of the Global Workplace
https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx