S6 Ep.130: Gallup's "State of the Global Workplace: 2025 Report"

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The global workplace teeters on the edge of a major shift, and Gallup's State of the Global Workplace 2025 report confirms what many have sensed. Employee engagement has fallen from 23% to 21% in 2024, mirroring the drop seen during COVID-19 lockdowns and costing the global economy a staggering $438 billion in lost productivity.

Surprisingly, the primary driver isn't frontline worker burnout but a significant decline in manager engagement, which fell from 30% to 27%. Young managers under 35 saw their engagement drop by five percentage points, while female managers experienced an alarming seven-point decline. Caught between increasing executive demands and evolving employee expectations, managers are being asked to "square the circle" – achieve the impossible amid constant disruption.

This matters tremendously because 70% of team engagement is directly attributable to the manager. When they struggle, teams inevitably follow suit, creating a devastating ripple effect throughout organizations. The connection between engagement and overall wellbeing is equally clear – half of engaged employees report thriving in their overall lives, compared to just one-third of disengaged workers.

Yet hidden within this challenge lies a transformative opportunity. Gallup estimates a fully engaged global workforce could add $9.6 trillion to the world economy – equivalent to about 9% of global GDP. The pathway to unlocking this potential is surprisingly achievable: providing basic manager training (currently missing for 56% of managers), teaching effective coaching techniques, and implementing ongoing development focused on wellbeing.

Regional variations add fascinating context to the global picture. The US, Canada, Latin America and the Caribbean lead with 31% engagement, while Europe lags significantly at just 13%. Australia and New Zealand boast the highest thriving rates at 56%, contrasting sharply with South Asia's concerning 15%.

As artificial intelligence transforms workplaces worldwide, this pivotal moment demands strategic choices. Will organizations leverage technology to elevate human potential or risk further disengagement? The data makes one thing abundantly clear: the future of work isn't fundamentally about technology – it's about human connection, empathetic leadership, and strategic development of our most valuable resource: people.

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