State of the global workplace

Gallup estimates low employee engagement costs the global economy 8.9 trillion U.S. dollars, or 9% of global GDP.

In 2023, global employee engagement stagnated, and overall employee wellbeing declined. Although both measures remain at or near record highs, their lack of improvement is significant, especially after multiple years of steady gains. Consequently, the majority of the world’s employees continue to struggle at work and in life, which directly impacts organisational productivity. Gallup estimates that low employee engagement costs the global economy US$8.9 trillion, or 9% of global GDP.

To enhance employee engagement and improve the health and productivity of the global workforce, leaders must implement effective employee engagement strategies. In this report, we explore the current state of employee mental health and wellbeing at a global level. We then delve into the economic and policy-related factors influencing employee wellbeing, followed by an analysis of manager-related factors that affect engagement at work and overall thriving in life. Additionally, we conducted follow-up interviews with respondents worldwide to gain insights into their feelings about their work. Examples of their responses are included throughout this Research Summary to highlight the benefits of employee engagement and its impact on employee retention, employee experience, and workplace productivity.

Not all mental health issues are directly related to work, but work plays a significant role in life evaluations and daily emotions. Employees who are dissatisfied with their jobs often experience high levels of daily stress and worry, along with elevated levels of other negative emotions. On many wellbeing indicators—such as stress, anger, worry, and loneliness—being actively disengaged at work can be as detrimental as, or even worse than, being unemployed.

In contrast, when employees find meaning in their work and work relationships, employment is associated with high levels of daily enjoyment and low levels of negative emotions. Notably, half of the employees who are engaged at work are thriving in life overall. For employers, enhancing employee engagement and supporting mental health are crucial strategies for improving employee satisfaction and retention. This involves providing appropriate benefits, flexibility, and employee resource groups to support overall wellbeing. However, employers should not overlook their most powerful tool for enhancing employee life evaluation: building productive, high-performing teams aligned with company values.

To maximise the benefits of employee engagement, frequent employee engagement surveys can be used to gather insights and identify areas for improvement. These surveys, coupled with effective employee engagement strategies, are key to fostering a positive employee experience, improving workplace productivity, and ensuring long-term employee retention.

While only 30% of managers and 23% of employees globally are engaged, some organisations achieve significantly higher levels of employee engagement and wellbeing. Best-practice organisations across various industries and geographies have three-fourths of their managers engaged, along with seven in 10 non-managers. This translates to a remarkable ratio of 14 engaged employees for every one actively disengaged employee, which is 11 times the global average.

Since 2020, the global workplace has undergone significant changes. The rise of hybrid work for remote-capable employees has complicated people management, while even on-site employees are demanding greater autonomy in their work lives. Additionally, the mental health of younger workers has emerged as a pressing concern. These trends necessitate new strategies for managing and engaging employees.

Many of the organisations studied by Gallup did not initially have high levels of employee engagement. Achieving such high engagement was the result of intentional leadership efforts over several years. Leaders who cultivate strong and resilient company cultures focus on several key areas that distinguish them from other organisations:

- Prioritising Manager Hiring and Development: The manager-employee relationship is the cornerstone of employee engagement and a crucial factor in overall employee wellbeing. Leading organisations hire managers with a natural talent for engaging their teams and train them to become effective coaches who provide meaningful feedback that drives improved performance.

- Integrating Engagement into the Employee and Manager Life Cycle: These organisations make employee engagement a central business strategy, incorporating it into every stage of the employee and manager life cycle. This includes how they hire, onboard, coach, and develop talent, as well as how they approach performance management, goal setting, team meetings, and manager-employee conversations. Engagement is embedded in their company culture—it's simply how they do business.

- Emphasising Wellbeing at Work and in Life: Top organisations consistently support employee wellbeing, making their commitment visible and continuous. Many employ dedicated wellbeing teams with counsellors or coaches, offering resources beyond physical health, such as financial literacy, planning support, and mental health webinars. They also encourage community involvement. By focusing on these areas, these organisations enhance both employee lives and organisational performance.

In summary, the benefits of employee engagement are far-reaching, improving employee retention, experience, productivity, and overall workplace satisfaction. Leaders can take actionable tips from these strategies to build a strong company culture that supports and retains talent, leading to long-term success.

TOP TAKEAWAYS

1. Lowest regional percentage of engaged employees.

2. Lowest regional percentage of employees who say they are watching for or actively seeking a new job.

3. Second lowest regional percentage of employees experiencing daily sadness.