Employee engagement slipping. Why managers are to blame

Global employee engagement is on the decline and findings suggest that fixing it starts with fixing manager engagement. Without that, productivity, morale, and even economic growth could be at risk.

A study by research firm Gallup found that the root of the problem is clear: Managers are burning out.

The latest State of the Global Workplace report found that the percentage of engaged employees worldwide dropped from 23 per cent in 2023 to 21 per cent in 2024 — only the second time in 12 years that global engagement has fallen.

The main reason? A noticeable dip in manager engagement.

While engagement among individual contributors held steady at 18 per cent, engagement among managers dipped from 30 per cent to 27 per cent. Young managers under 35 saw a five-point drop, and female managers experienced a seven-point decline — the largest of any worker group.

“Manager engagement affects team engagement, which affects productivity,” said Jim Harter, Gallup’s chief workplace scientist. “Business performance — and ultimately GDP growth — is at risk if executive leaders do not address manager breakdown.”

North American trends

The U.S. and Canada have historically led the world in employee engagement, but in 2024, that lead narrowed. Both regions posted a 31 per cent combined engagement rate, tying with Latin America for the first time. In the U.S., engagement has fallen to its lowest point in nearly a decade. Canada, meanwhile, held steady at 21 per cent — matching its recent three-year average.

While the U.S. has always had a higher engagement rate, the gap between the two countries has shrunk to 11 points, the smallest difference Gallup has recorded since it began tracking three-year rolling averages in 2010.

What can be done?

Gallup recommends three key actions to reverse the trend:

1. Train managers: Engagement among managers who receive training is significantly higher. In fact, active disengagement is cut in half for those who undergo development programs.
2. Teach coaching skills: Managers trained in coaching techniques see up to 22 per cent higher engagement. Their teams also benefit, with engagement rising by as much as 18 per cent.
3. Support ongoing development: Manager “thriving” — a measure of well-being — improves from 28 per cent to 34 per cent with training. That number jumps to 50 per cent when training is paired with active encouragement from someone at work.

Job market and wellbeing

Globally, 51 per cent of workers say it’s a good time to find a job — the lowest level since 2021. In the U.S. and Canada, that number is slightly higher at 57 per cent.

But wellbeing is slipping. Only 52 per cent of employees in the U.S. and Canada say they are thriving in their lives — a record low for the region, though still well above the global average of 33 per cent.

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