Leading Through the Storm: Gallup’s 2025 Global Workplace Report and the Leadership Imperative
The Engagement Crisis is Back
In a year where technological acceleration and economic uncertainty have intersected with rising workplace strain,
Gallup’s State of the Global Workplace: 2025 Report delivers a sobering headline:
global team member engagement has dropped to just 21%, down from 23% in 2023.
This is only the second recorded global decline in engagement since 2009 and its effects are already being felt in productivity,
wellbeing, and workplace culture across continents.
"We stand at the edge of a new era of work.
With thoughtful leadership and strong, empowered managers,
AI can elevate human potential rather than diminish it."
Jon Clifton, CEO of Gallup
Global Trends, Productivity at Risk, Wellbeing in Decline
Engagement Down,
the global drop in engagement has cost the world economy $438 billion in lost productivity,
with Gallup estimating a $9.6 trillion potential if full engagement were achieved.
Manager Burnout,
engagement among managers fell from 30% to 27%, disproportionately affecting young (–5pts)
and female (–7pts) leaders a clear signal of burnout in the leadership layer.
Remote Work Fatigue,
fully remote workers report higher levels of stress (45%), sadness (30%),
and loneliness (27%) compared to their on-site and hybrid counterparts.
These trends are not merely technical or procedural they reflect deep emotional
and relational shifts in how people experience their work.
The report notes that 70% of team engagement is directly linked to the manager.
Regional Highlights,
A Divided Workforce
| Region |
Engagement |
Thriving |
Job Market Optimism |
| North America |
31% (top) |
52% |
57% (declining) |
| Latin America |
31% |
54% |
58% (rising) |
| Australia & New Zealand |
23% |
56% |
72% (top) |
| Europe |
13% |
47% |
57% (steady) |
| South Asia |
26% |
15% |
50% |
| East Asia |
18% |
34% |
51% |
Europe reports the lowest engagement globally (13%) and has seen no improvement in over a decade.
Australia & New Zealand show high life satisfaction (56% thriving) and top global job confidence but stress remains high at 49%.
Latin America matches North America in engagement (31%) and is one of the few regions showing upward movement.
In South Asia, however, the situation is more complex. Despite relatively strong engagement (26%),
the region ranks lowest in life satisfaction (15%) and highest in sadness and anger, reflecting a
disconnect between effort and experience.
The Leadership Solution, Empowering Managers for a New Era
Gallup makes one message clear; manager capability is the lever that moves engagement, wellbeing, and performance.
In this context, leadership development is not a perk it's a necessity.
Three critical actions emerge from Gallup’s findings:
Train Every Manager, less than half of global managers have received formal training.
Basic role training can halve active disengagement rates.
Coach for Impact, effective coaching boosts manager performance by up to 28%, with team engagement also rising by up to 18%.
Sustain Manager Wellbeing. ongoing development increases manager thriving from 28% to 50%.
"If we are all working, going in the same direction, being thankful and respectful to each other,
then anything becomes easier even in tough times."
Bryan V., Systems Engineer, U.K. (Gallup Report, 2025)
For organisations navigating hybrid models, economic pressures, and a looming wave of AI disruption,
investing in human-centred leadership is not only strategic its survival.
A Call to Lead
This year’s Gallup report is more than a warning it’s a roadmap.
It shows that engagement, productivity, and wellbeing hinge not on grand initiatives but on everyday
leadership interactions. As artificial intelligence reshapes industries, the human experience of work must
be re-centred through skilled, compassionate, and equipped leaders.
The future of work will not be built by software alone. It will be built by people who are led well.
Reference:
Gallup (2025). State of the Global Workplace: 2025 Report. Retrieved from:
https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx