Each year, Gallup publishes its State of the Global Workplace report — one of the most widely recognised and respected reports of its kind. Drawing on data from over 160 countries, the report offers powerful and in depth insights into how people are feeling at work and what this means for organisational performance, productivity, and wellbeing.
The 2024/25 findings are particularly sobering. For only the second time in more than a decade, global employee engagement has declined — a 2% drop that signals deeper, structural issues within organisations around the world. And the cost? Gallup estimates disengagement is now draining the global economy by an eye-watering $8.9 trillion annually.
UK findings
For the UK, the picture is even more concerning. With just 10% of employees engaged — below the already-low European average — the economic cost of disengagement has reached £257 billion per year, or 11.3% of GDP.
In this insight, we unpack what these findings really mean for organisations, leaders, and teams — and, more importantly, what can be done about it. We’ll explore:
- Why the UK and Europe consistently struggle with engagement
- The urgent need to rethink the role of managers
- How hybrid working has reshaped connection
- And how cross-generational dynamics could hold the key to rebuilding trust and culture
The data is alarming. But within it lies a clear opportunity — to lead differently, connect more meaningfully, and rebuild culture as a driver of performance.
Only 10% of UK employees are engaged at work, compared to the already-low European average of 13%. That means 9 in 10 employees are either not engaged, or actively disengaged. The consequences are hard to ignore and include:
- Lower productivity
- Higher absenteeism
- Increased turnover
- Stalled innovation
Culture is not a bonus — it’s the beating heart of organisational performance. When culture breaks down, engagement is one of the first things to go.
The Manager Crisis: Rethinking Leadership
At the core of the engagement problem is one group that’s often overlooked: managers.
Only 16% of UK managers are engaged. These individuals — promoted for technical expertise rather than leadership capability — are often stuck in the middle, absorbing pressure from above while shielding their teams. They’re overextended, under-supported, and increasingly burnt out, and in large very equipped for their roles (despite often good intentions).
And it matters: Managers account for 70% of the variance in team engagement, according to Gallup.
As we discuss in Why Coaching Is the Answer to Everything, today’s leaders don’t need more tools — they need transformation. Coaching mindsets, emotional intelligence, and clarity of purpose are no longer optional. They’re the levers of high performance and resilience.
Train your managers like your business depends on it — because it does.
Rebuilding Connection in a Hybrid World
As hybrid and remote work becomes the norm, many organisations are facing a quiet erosion of connection. The data is clear: when people feel isolated, engagement nosedives.
But connection isn’t just about being in the same room. In The Lost Art of Team Building, we explore how teams can build meaningful bonds, trust, and shared identity — whether they’re remote, hybrid, or in-office. It’s not about replicating the office online. It’s about designing connection with intention.
Strong teams don’t just happen — they’re built. And right now, many teams are crumbling under the weight of disconnection.
You can learn more about how we support highly connected remote teams.
Bridging the Generational Divide
Another overlooked contributor to low engagement is generational disconnect. In diverse workplaces, differences in values, communication styles, and expectations can easily become friction points.
In Five Steps to Help Multi-Generations Work Brilliantly Together, we offer practical steps to foster understanding, collaboration and inclusion across age groups. With engagement at crisis levels, organisations can’t afford generational blind spots.
Inclusive cultures are engaging cultures. And generational empathy is a key part of that puzzle.
Culture as a Competitive Edge
Engagement isn’t a “nice-to-have” — it’s a cultural and economic imperative. Businesses that actively invest in leadership, team dynamics, and meaningful connection are not only surviving — they’re outperforming.
As culture consultants, we help organisations design and embed people strategies that are as intentional, data-informed, and results-driven as their commercial strategies. Because when culture is treated as a core business priority — not a side initiative — organisations unlock higher engagement, stronger leadership, and sustained performance.
We bring a wealth of tools, resources, and expertise to support this work — and investing in your culture doesn’t have to be as costly or complex as you might think. One of our core values is light-touch impact, and we firmly believe that even the smallest, well-placed changes can lead to powerful, lasting results.
Learn more about our approach to future-proofed culture.
