Addressing record low global employee engagement 

 In recent years, employee engagement has become a pressing concern for organisations worldwide. The State of the Global Workplace: 2024 Report by Gallup, surveying the adult population across more than 160 countries, reveals that nearly two-thirds of employees feel dissatisfied with their work, with only 34% reporting that they are thriving.  

The 2023-2024 Human Development Report by the  UN Development Programme  further emphasises this issue, highlighting a decade-long rise in stress and anxiety among workers. Just as a garden requires care and nurturing to grow, organisations must cultivate an environment that supports employee well-being, as neglecting this can lead to detrimental impacts on performance and profitability 

Whilst there has been an increased focus on wellbeing in the workplace, a study conducted by the University of Oxford shows that individual-level mental well-being interventions like mindfulness practice, resilience training, stress management, relaxation classes, and well-being apps show little evidence of benefits and, in some cases, may even indicate potential harm. Instead, the focus needs to be on Leadership accountabilities and tangible changes in job and workplace design including harnessing technology like AI to improve working conditions.   

Benefits of improving employee well-being 

The economic implications of low employee engagement, which reflects employees' involvement and enthusiasm in their work and workplace, are startling. Gallup estimates the global costs of low employee engagement at $8.9 trillion U.S. dollars or 9% of the global GDP. This $9 trillion message shows that improving employee engagement is not just another HR initiative but a critical business requirement with significant financial consequences. 

Three decades of Gallup research show a strong link between engagement, managerial quality, and business success. Their meta-analysis of 183,000 business units across 53 industries finds top-quartile engaged teams achieve 23% higher profitability, driven by superior talent retention, customer service, and output quality. 

When organisations increase the number of engaged employees, they see marked improvements across various performance metrics, including higher profit margins, better retention rates, and enhanced customer service. This is because engaged employees are typically more productive, innovative, and committed to their employers. 

Factors affecting employee well-being 

One of the factors affecting employee well-being is loneliness. Gallup's report highlights that 20% of the world's employees experience daily loneliness, with the highest rates among fully remote workers. This isolation can lead to disengagement and reduced productivity, making it essential for businesses to find ways to foster connection and community among their staff. 

The state of the job market also influences employee engagement. Active disengagement is lower in countries with favourable job prospects because employees can leave unsatisfactory roles. Conversely, in tighter job markets, employees may feel trapped in unfulfilling positions, leading to higher disengagement and lower morale. 

Globally, employee well-being declined from 35% in 2022 to 34% in 2023, according to Gallup's metric, which assesses overall life evaluation through present and future self-reflection. This decline was most significant among workers under 35.  

The World Happiness Report  highlights a significant happiness gap between younger and older generations. Those born before 1965 report life evaluations that are, on average, about a quarter of a point higher than those born after 1980, including Millennials and Gen Z. While this disparity is often exaggerated, it is crucial for leaders to recognise that they may not share the same perspectives as their younger employees due to generational differences. Remarkably, a decade ago, younger workers consistently reported higher life evaluations than their older counterparts, indicating that this shift is indicative of broader societal changes rather than simply a matter of life stages. 

Manager well-being matters 

According to Gallup’s findings, employee engagement is driven more by having great managers than by macroeconomic factors. A recent study by The Workforce Institute at UKG, which surveyed 3,400 people across ten countries, highlighted the crucial role of managers, with 69% of respondents citing their managers as having the most significant impact on their mental health —a figure comparable to the influence of their partners and even more important than that of their doctors (51%). 

Still, managers often experience even higher levels of stress compared to non-managers. Despite the benefits of managerial roles, the emotional toll is significant, with many managers considering leaving their positions. Given their crucial role in supporting employees and guiding them to mental health resources, it is vital to recognise and address their well-being as part of broader organisational initiatives. 

Post-COVID complications 

Since the onset of the COVID-19 pandemic in 2020, the global workplace has undergone dramatic changes. The rise in hybrid work has added complexity to managerial roles, while even on-site employees are demanding more autonomy. 

Additionally, the mental health of younger workers presents a new and challenging concern, requiring innovative management approaches. 

Improving engagement with systemic change 

Achieving high levels of employee engagement is a gradual process, Gallup's research shows. Organisations with robust engagement metrics didn't achieve them overnight; rather, they undertook intentional, long-term initiatives led by committed leadership to cultivate an engaging work culture. 

Shaping workplace culture always begins at the top, requiring widespread buy-in throughout the organisation. Leaders who are successful in building resilient organisational cultures prioritise three key areas: