Global employee engagement declines, with young and female managers hit hardest

According to a new report, while individual contributors have held steady at 18%, managers saw a notable decline falling from 30% to 27%.

A recent report has revealed a decline in global employee engagement in 2024, for what is said to be the second time in over a decade. This time, it is costing the world economy an estimated US$438bn in lost productivity, according to Gallup’s State of the Global Workplace report 2024.

Per the study, engagement levels dropped from 23% in 2023 to 21% in 2024. While individual contributors have held steady at 18%, managers saw a notable decline falling from 30% to 27%. Gallup points to this drop in manager engagement as a key driver behind the broader disengagement drop.

Significant decline for young and female managers

No group has experienced as sharp a drop as managers, with two demographics standing out:

• Engagement among managers under 35 fell by five percentage points.
• Female managers experienced an even steeper seven-point drop.

According to Jim Harter, Gallup’s Chief Workplace Scientist, the risk is not just internal.

"Manager engagement affects team engagement, which affects productivity. Business performance — and ultimately GDP growth — is at risk if executive leaders do not address manager breakdown," he noted.

The report outlined three key actions leaders can take to improve manager engagement:

1. Upskill managers: Active disengagement can be halved when managers receive training, yet many say they have not received any at all.
   
2. Equip them to coach: Managers trained in best practices see up to 22% higher engagement and in return, their teams also saw engagement rise by up to 18%.
   
3. Foster long-term development: Manager thriving rises from 28% to 50% when supported with both training and active encouragement from colleagues.

Regional shifts in engagement

For the first time, the US and Canada who had the highest engagement in the world are now on par with Latin America and the Caribbean, where engagement levels have climbed to a record high.

Elsewhere, regional shifts paint a mixed picture. In South Asia, engagement fell by three percentage points in 2024 but still remains above the global average. This dip is largely attributed to India, the region’s most populous country, where engagement also declined by three points in Gallup’s three-year rolling average.

Europe, meanwhile, continues to trail behind all other regions marking its fifth consecutive year at the bottom of the engagement rankings. The Middle East and North Africa, East Asia, and sub-Saharan Africa also remain below the global average.

On a more positive note, employee engagement in Post-Soviet Eurasia reached a new high of 26%. Southeast Asia matched this figure, representing more than double the rate recorded for the region back in 2011. In Australia and New Zealand, engagement continues to increase strongly, staying near the upper end of the trend since 2012.

What about the global job market sentiment?

Globally, just over half of employees (51%) believe it’s a "good time" to find a job in their area, the lowest point since 2021. However, optimism remains strong in:

• Australia and New Zealand (72%)
• Latin America and the Caribbean (58%)
• Europe (57%)

Interestingly, while 50% of employees are open to new job opportunities, this is a slight decrease from 2022 and 2023.

Wellbeing on the decline

The percentage of employees globally who say they are "thriving" in life has also dropped now to 33%, the lowest since 2021. Key findings include:

• US and Canada: Only 52% of employees are thriving — a record low for the region.
• Australia and New Zealand: Highest global rate at 56%, but down 13 points from 2011.
• South Asia: Lowest percentage of thriving employees among all regions.
• Post-Soviet Eurasia & Southeast Asia: New highs at 33% and 36% respectively.
• Latin America & Caribbean: 54% are thriving which is the region’s highest in a decade.

Daily experiences of stress, anger, and sadness remain high in many regions, with loneliness emerging as a growing concern. For instance:

• Sub-Saharan Africa: Reports of daily stress have reached a new high at 47%.
• Europe: Reports of anger are at 14%, slightly below the previous range of 15%–19%.
• East Asia: 14% reported feeling sadness the day before, double the 7% recorded in 2011.

While engagement levels rise and fall, the findings suggest that with the right tools, training, and support, leaders can improve their workforce.

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