Are We Experiencing an Employee Engagement Crisis? 

Are We Experiencing an Employee Engagement Crisis? 

By Lin Grensing-Pophal, Contributing Editor, HR Daily Advisor

For only the second time in over a decade, global employee engagement has declined, dropping from 23% to 21% in 2024, according to Gallup’s latest State of the Global Workplace report.  

This downturn is not just a meaningless statistic—it translates to a staggering $438 billion in lost productivity worldwide.  

The decline is most pronounced among managers, whose engagement fell from 30% to 27%. Younger managers under 35 and female managers experienced the sharpest drops, with decreases of 5% and 7%, respectively.  

Crisis

Managers Feel the Heat 

“Managers have a lot of things coming at them,” says Jim Harter, Gallup’s chief scientist for workplace management and well-being. “The new demands coupled with the old demands of the manager’s job have caused kind of an overwhelming feeling for a lot of managers.”  

Of course, when managers disengage, there’s a ripple effect that cascades through their teams. Gallup’s research has consistently shown that 70% of team engagement is directly tied to the manager. A disengaged manager isn’t just a retention risk—they’re a risk multiplier. 

The Solution: Better Management 

The report points to one solution: better management, backed by behavioral science.  

According to Gallup, managers need training, support, and clarity on expectations—most of which are still missing in many workplaces. Only 44% of global managers say they’ve received formal training for their role. 

Gallup also underscores the importance of employee well-being as a key performance lever. “For employees to thrive at work, they need more than pay and perks,” the report notes. “They need purpose, development, a caring manager, and a healthy work-life balance.” 

Next Steps 

So what can companies do? 

  • Invest in manager development. It’s not optional. The managers feeling the biggest pressure are often the least equipped. 
  • Clarify priorities and expectations. Help managers focus on people, not just output. 
  • Foster cultures of feedback. Managers need support—and space—to adapt and lead. 

This isn’t just an engagement dip. It’s a warning. And if companies don’t act on the warning, they won’t just lose productivity—they’ll lose the very people who make productivity possible. 

Originally posted on HR Daily Advisor

Nikki L

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