Employee engagement has been on a slow downward slide, and it’s now becoming a business-critical issue, not just a “people” issue. Gallup’s State of the Global Workplace 2026 report paints a worrying picture: global employee engagement has fallen to 20%, down from its 2022 peak of 23%. That might not sound dramatic, but across the global workforce, even one percentage point represents around 21 million people.
Engagement isn’t a “nice to have”
Gallup defines engagement as the psychological attachment employees feel to their work, their team, and their employer. In plain terms, it’s whether people care.
That matters because engagement has a direct relationship with productivity, performance, profitability, and sales. When people are disengaged, organisations become less effective. Gallup estimates low engagement cost the global economy around $10 trillion in lost productivity last year, equivalent to roughly 9% of global GDP.
If you’re leading a business, you can’t afford to ignore that.
The real warning sign: managers are disengaging the fastest
While overall engagement has dropped, manager engagement is declining even more sharply.
Gallup reports that manager engagement has fallen by nine points since 2022. The steepest year-on-year drop happened between 2024 and 2025, when it fell from 27% to 22%. Historically, managers tended to have an “engagement premium" - they felt more invested than the people they managed. That gap is disappearing.
In other words, your managers are increasingly just as drained as your teams.
Why manager burnout is spreading
There are several reasons this is happening, and most will feel familiar.
Many organisations have flattened structures in the name of efficiency. This often means fewer managers, wider spans of control, and larger teams. When managers are stretched too thin, they stop coaching, stop developing people, and focus purely on getting through the week.
Even strong managers struggle when they’re managing too many direct reports without the right support.
AI and restructuring may be fuelling the pressure
The report also suggests that sector shifts, including hiring slowdowns and reductions in mid-level and senior roles, may be contributing to the problem. Fewer managers may be expected to deliver the same output, possibly accelerated by AI adoption and cost-cutting.
This is a pattern employers everywhere should be watching. Technology can boost productivity, but if it’s used as a reason to remove management layers, the human cost can show up later through disengagement and attrition.
What high-performing organisations do differently
Gallup found that in best-practice organisations, 79% of managers were engaged. These organisations exist across industries and regions, meaning this isn’t limited to one sector or one type of culture.
The key difference is that they invest in management capability, support, and clarity - rather than simply promoting strong performers and hoping they’ll cope.
What you can do now as an employer
If you want to reverse disengagement, start with your managers.
Look closely at workload, span of control, and expectations. If you’ve reduced headcount but increased reporting requirements, your managers may be spending more time on admin than leadership.
Also consider whether you’re giving managers real authority. Engagement collapses quickly when people feel responsible but powerless.
Finally, invest in training that focuses on practical leadership behaviours: coaching, feedback, performance conversations, and motivation. These are the everyday skills that create engaged teams.
We're here to help find leading, engaged managers and teams
If you want stronger retention, better productivity, and healthier workplace culture, your management layer is where the biggest gains are still available. Get in touch to find leading talent who can strengthen your leadership capability and build high-performing teams.