Global Employee Engagement Declines: Insights From Gallup

Author(s): Scott Douglas Jacobsen

Publication (Outlet/Website): The Good Men Project

Publication Date (yyyy/mm/dd): 2025/06/02

Dr. Jim Harter, Chief Scientist at Gallup, discusses global employee engagement trends. In 2024, engagement fell from 23% to 21%, costing an estimated $438 billion in lost productivity. Manager engagement dropped sharply, especially among young and female managers. Only 44% of managers receive formal training, highlighting a need for development in communication, recognition, and goal-setting. North America and Latin America lead engagement globally, though North America has declined. Global well-being also worsened, with thriving rates in Canada dropping from 73% to 53%. Harter emphasizes that engagement and well-being together impact retention and workplace performance.

Scott Douglas Jacobsen: Today, we’re joined by Dr. Jim Harter, Chief Scientist for Workplace Management and Well-being at Gallup.

Dr. Jim Harter: Thanks for having me.

Jacobsen: Dr. Harter has conducted over 1,000 studies on workplace effectiveness, including the largest ongoing meta-analysis of human potential and business team performance. His research has been featured in prominent publications such as Harvard Business Review, The New York Times, and The Wall Street Journal. He’s also a best-selling author of several books, including 12: The Elements of Great Managing, Wellbeing: The Five Essential Elements, Wellbeing at Work, and It’s the Manager, which he co-authored with Gallup Chairman Jim Clifton. Their most recent book, Culture Shock, examines the evolving workplace in the wake of the pandemic and the shift to remote and hybrid environments. 

He earned his doctorate in psychological and cultural studies from the University of Nebraska-Lincoln, focusing on quantitative and qualitative methods. For those unfamiliar, quantitative psychology is known for its rigorous statistical analysis, making it one of the more challenging doctoral tracks.

Harter: That’s right. It builds the foundation for our data-driven approach at Gallup.

Jacobsen: Let’s examine the data. What was the global employee engagement rate in 2024, and how did it compare to the previous year?

Harter: In 2024, the global employee engagement rate dropped from 23% to 21%, marking only the second decline since we began tracking it in 2009. This two-percentage-point decrease is significant, correlating with an estimated $438 billion in lost productivity worldwide.

Jacobsen: That’s substantial. Can you elaborate on how engagement levels impact productivity?

Harter: Certainly. Engagement reflects employees’ involvement and enthusiasm in their work. When employees are engaged, they put in more discretionary effort, which drives performance and productivity. When they’re disengaged, those contributions drop, and that can damage organizational outcomes.

Jacobsen: Are there specific groups where engagement has declined more sharply?

Harter: Yes. In 2024, engagement among managers dropped from 30% to 27%. Younger managers—those under 35—saw a five-point decline, while female managers saw a seven-point decline. This drop is especially concerning because managers account for about 70% of the variance in team engagement.

Jacobsen: With such significant impacts, what can organizations address declining engagement?

Harter: Organizations need to double down on manager development through training, coaching, and support. Managers need the right tools, clear expectations, and a culture that prioritizes well-being and performance. When managers are engaged, their teams are far more likely to be involved.

Jacobsen: The overall cost of a lack of engagement is about $9.6 trillion globally, correct?

Harter: That’s right. It’s essential to be clear about that number—it reflects the magnitude of lost productivity due to disengaged employees.

Jacobsen: But do we see predictable ups and downs in engagement year to year?

Harter: No, not really. Engagement trends don’t follow a predictable cycle. They depend almost entirely on what organizational leaders do—specifically, how well they equip managers to do their jobs effectively.

Jacobsen: What are the current challenges affecting manager engagement?

Harter: Right now, we’re seeing a significant issue with manager resiliency. Managers have a tremendous amount coming at them. Even before the recent shifts in the economy and workplace—much of it a continued aftershock of the pandemic—they already had heavy job demands. I can share some examples if you’d like, but the key point is this: the most significant causal factor in the drop in engagement is the drop in manager engagement.

Jacobsen: Why is that such a critical factor?

Harter: When managers are disengaged or uninspired, it’s difficult for them to inspire others. In other words, if your manager isn’t engaged, the employees will be unlikely to be involved. Engagement flows downward, which is why it’s so critical.

Jacobsen: Are all employee groups affected equally?

Harter: No. Not all workers—or groups—are impacted the same way. The most significant drop in engagement occurred among young managers and, in particular, female managers.

Jacobsen: What’s behind that trend?

Harter: When we look at why drops occur—why people become vulnerable to declines in engagement or well-being—it’s usually a compounding effect. Globally, women often carry substantial responsibilities both at work and home. Female managers, in particular, are balancing many competing demands. Then, you add all the workplace changes post-pandemic, and they feel the most impact. We saw a seven-point drop in engagement among female managers—the most significant decline across all groups.

But managers, in general, need to be highlighted here, too. They hold a uniquely critical position in every organization.

Jacobsen: How many managers have received formal management training?

Harter: Only 44% of managers globally report receiving formal management training. That’s surprising. It matters. The kind of training typically offered has historically been administrative in nature, which does help reduce active disengagement at the bottom. But if you want to boost engagement at the top end of the spectrum, move the needle, and you need different training.

Training focused on the people side of management—things like coaching, communication, recognition, and development—is where the opportunity lies. Our data from thousands of studies shows that if organizations want to significantly improve Manager and employee engagement, they need to upskill managers in these areas.

Jacobsen: That’s helpful context. And for readers, that might need parsing, but it’s key to a long-term engagement strategy. Some of our readers may not be dealing with this day-to-day. They may be speaking to various experts, and when you’re using your terminology, it must be translatable into more concrete terms. So, when we talk about upskilling at the personal level, what exactly does that mean—and what’s a practical example?

Harter: Great question. Upskilling a manager means giving them science-based insights into how they can effectively manage performance. It comes down to three key areas: employee engagement, performance management, and well-being. These three areas enable managers to have more frequent and meaningful conversations with their employees—conversations that help prevent minor issues from becoming larger ones.

The first area is setting clear expectations and involving employees in the process. When managers are skilled at collaboratively setting goals, everything else is much easier. The number one issue we’ve seen, particularly in the U.S. in recent years, is employees feeling unclear about what’s expected of them. There’s a lot coming at them, and without clarity, it’s easy to get overwhelmed. Managers who excel at clarifying goals and roles help reduce that ambiguity.

The second area is ongoing conversations. Our research strongly supports the idea that every Manager should have at least one meaningful weekly conversation with each employee. This doesn’t need to be a long meeting—15 to 30 minutes can be enough—but it needs to be substantive. These check-ins should include setting or adjusting goals, recognizing achievements, and helping employees understand how their work connects to the team and broader outcomes. These conversations also allow managers to know their employees’ strengths and tailor their support accordingly. We have tools that help managers do this more effectively.

The third area is accountability. Effective managers create a culture of high accountability where employees know how they’re performing. That accountability should focus on three things: their performance, their collaboration with the team, and the value they deliver to customers—whether those customers are internal or external. Everyone has a customer, and everyone should have a way of knowing how well they’re serving them.

So, good upskilling should address those three areas. When done right, this kind of development pulls together traditionally siloed areas—performance management, employee engagement, and individual well-being—into a unified and effective leadership approach.

Jacobsen: Which regions currently have the highest employee engagement, and what are they doing right?

Harter: The two regions tied for the highest employee engagement globally are the United States and Canada, Latin America and the Caribbean. But to understand what’s working, you must drill down to the company level within those regions. That’s what we do at Gallup—we work with organizations to identify the leaders and understand what drives their success. It’s less about geography and more about what companies within those regions do intentionally to build strong cultures and excellent management practices.

Jacobsen: Northern America and Latin America/Caribbean are at the top in terms of engagement. But Northern America has seen a decline in recent years, right?

Harter: Yes, that’s correct. While engagement in those two regions—Northern America, Latin America, and the Caribbean—is currently the highest globally, it is important to note that engagement in Northern America has dropped recently. Engagement levels are only in the 30% range now, so it’s far from perfect.

Jacobsen: So it’s not just about geography, then?

Harter: Exactly. What is critical for people to understand, Scott, is that there is massive variation within geographies at the company level. Some companies are doing outstanding work—those are the ones hitting 70%+ engagement levels. And we’ve studied many of them across industries and regions.

So, the most significant driver is not geography or industry—it’s the organization itself. That said, certain cultural norms within different geographies may influence engagement levels somewhat. For example, how much emphasis society places on the importance of work can affect engagement norms.

Jacobsen: And economic context?

Harter: Yes, macroeconomic conditions can play a role, especially in levels of active disengagement. In healthier economies, where workers have more choices, you tend to see lower active disengagement. However, active disengagement increases in weaker economies, where people feel stuck in bad jobs with fewer alternatives. We’ve written about that before. These economic pressures mainly influence the lower end of the engagement spectrum.

Jacobsen: Let’s move to a country-specific example. India is the largest democracy in the world and, as of 2021, overtook China as the most populous country. How was employee engagement in India, and how did that affect South Asia?

Harter: India is a dominant force in South Asia, so what happens there significantly impacts the region. Engagement in India declined substantially in the most recent data. They had reached a peak in recent years, but that trend has now reversed. As a result, South Asia’s overall engagement also declined, which has ripple effects on the global engagement numbers.

Jacobsen: Understood. I know we’re nearing the end of our time. Do you have a few more minutes?

Harter: Sure, I can take a few more minutes.

Jacobsen: Great. I’ll let you choose: Do you want to discuss job market sentiment or employee well-being?

Harter: Let’s go with well-being.

Jacobsen: What percentage of employees reported thriving in 2024? And how does that compare to previous years?

Harter: Let me pull that up real quick… I had the report open here a moment ago.

Harter: The report provides specific numbers, but “thriving” is an especially interesting metric from a well-being perspective because its trajectory varies significantly by region.

For instance, the percentage of people thriving in the U.S. and Canada has dropped significantly over the years. In Canada, the thriving rate was once as high as 73%. Now it’s around 52%. In the U.S., the number has also declined from 60% down to 52%.

Globally, the percentage of people reporting they’re thriving is about 32%.

The two regions with the sharpest declines are the U.S., Canada, Australia, and New Zealand. These drops suggest that more people in those areas struggle with evaluating their overall lives.

Jacobsen: What about other well-being indicators like stress?

Harter: That’s a good question. We track a range of well-being indicators, and stress has increased significantly. For example, in Canada, the percentage of people reporting daily stress rose from 45% to 58%. That’s a substantial increase.

Anger has also gone up—by about four percentage points globally.

To clarify one earlier point, Canada’s thriving rate dropped from 73% to 53% between 2009 and today—a 20-point decline. The U.S. saw a similar drop, though not quite as steep.

Jacobsen: Those are significant changes in how people perceive their lives overall. How does this tie into employee retention and the job market?

Harter: That’s a key point, Scott. When people consider a job change, engagement—how they feel about their work—is central. But well-being plays a significant role, too.

When we consider engagement and well-being together, they have an additive effect on predicting whether someone intends to stay with their organization or leave. Even in a tight job market, where fewer people may be actively switching jobs, these psychological factors influence how employees show up and whether they’re committed to doing great work.

When the job market loosens again, those same psychological factors will shape how people perceive their organizations—whether they want to stay or go.

Jacobsen: So well-being is a cultural investment, not just a retention strategy.

Harter: Exactly. One of the most impactful improvements organizations can make is to take a holistic approach to supporting their employees—not just as workers but as people. I’m not saying managers should be life counsellors, but they should be equipped to have regular, meaningful conversations with their employees.

Managers can adapt and support more effectively by understanding what’s going on in people’s work lives. When employees are engaged but have low well-being, they often start looking for other jobs because their lives are not going well. High engagement helps, but it’s the whole picture that genuinely matters.

At the start of the report, every variable we measure—thriving, stress, engagement—is broken down by region.

Thanks for being so thorough, Scott.

Jacobsen: Thank you again. It was great to meet you.

Harter: Likewise. Nice to meet you, Scott. Take care.

Jacobsen: Bye.

Harter: Bye-bye.

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