Gallup’s latest “State of the Global Workplace” report reveals a sobering reality about today’s workforce. Global employee engagement has dropped to 21%, and the lifeblood of any thriving organization—its managers—is also struggling, with engagement among managers falling to a mere 27%. Behind these numbers lies a workforce that feels disheartened, disconnected, and, often, ready to walk away. This goes beyond statistics—it’s a wake-up call for leaders everywhere.
As negative and challenging as this reality may seem, it also brings a tremendous opportunity for leaders to address disengagement head-on. By acting with deep intentionality, organizations can gain a significant edge. Gallup estimates that fully engaging the world’s workforce could add $9.6 trillion in productivity to the global economy. Imagine what could happen if leaders truly unleashed the potential within their organizations.
The real question isn’t just why disengagement is happening, but how we address it. How do we, as leaders, create workplaces where people feel empowered, connected, and valued not just as employees but as individuals?
A Workforce Under Pressure
The challenges that have brought us to this very moment are complex and intertwined. For many managers, the past few years have been nothing short of tumultuous. Post-pandemic retirements, sudden turnover, hiring sprees gone awry, budget cuts, and shifts in customer expectations have left many feeling overwhelmed.
At the same time, many employees are grappling with rapid changes that touch every aspect of their lives—from inflation and housing costs to lingering concerns over health and well-being.
The latest Gallup report highlights that employee life evaluations have significantly dropped. Well-being has transitioned from an HR talking point to a full-fledged workforce crisis. Shockingly, in regions like South Asia, only 15% of employees rate their lives as thriving, while globally, 33% are in this category. The rest of the data tells a story of deep struggles and unmet needs.
Despite the prevailing uncertainty, one certainty persists: the key to overall engagement lies with people managers. They directly influence 70% of it, making them either the biggest barrier or the strongest driver in building a positive and productive culture.
The Path Forward
The path forward, especially in tough and uncertain times, is rarely straightforward. It’s easy to dwell on challenges and hope for external circumstances to improve, but that mindset isn’t leadership—it’s stagnation.
This is where the idea that true leadership is about influence, not a title, comes into play. The need for leaders to step up and make an impact has never been greater. Here are five specific steps to tackle disengagement head-on and reimagine the workplace.
1. Invest in Managers as the Linchpin
The data is clear: training can significantly reduce manager disengagement. Yet, only 44% of managers globally have received meaningful development. This is a missed opportunity. By focusing on practical coaching skills, emotional intelligence, and resilience, manager training programs can boost performance by 20–28%, with effects lasting up to 18 months.
When managers learn not just to hit KPIs but to truly connect with their teams, it can transform workforce engagement. Great managers don’t just oversee work—they build environments where people feel supported, valued, and able to thrive.
I’ve seen this challenge up close over the past decade. Manager training isn’t about a one-off professional development program every few years. Organizations that view training as constant and ongoing—like a sports team preparing for every game—see the greatest impact.
2. Prioritize Flexibility
The way we work and interact with one another has shifted forever. While remote and hybrid work may not be practical in all industries, their overall impact on employee expectations is undeniable. Flexibility is no longer a perk; it’s expected. Leaders must show that they understand employees’ lives outside of the office by offering flexible hours, adaptable policies, and remote work options.
When implemented correctly, flexibility fosters trust and empowers individuals to thrive. Start by truly listening to what employees need to perform at their best, and design work around their feedback. Disengagement often arises when organizations and leaders fail to adapt to the evolving needs and realities of their people.
3. Make Well-Being a Cultural Priority
It’s not enough to have well-being initiatives buried in a benefits package that people will never see. Leaders must actively build a workplace culture where well-being is not just supported but promoted and celebrated. This means normalizing conversations about mental health, offering resources for stress management, and ensuring team members feel psychologically safe.
A positive and thriving workplace culture isn’t built overnight, but it starts with visible and bold action. When leaders prioritize their own well-being and demonstrate vulnerability, employees are more likely to follow suit.
As I discuss in detail in Culture Is the Way, noble intentions fall flat without consistent behavior and action from an organization’s leaders.
4. Redefine Success Beyond Output
For too long, success has been measured by output alone. The truth is, a disengaged workforce can hit targets without delivering any real value. Organizations must prioritize metrics like employee satisfaction, retention rates, and internal mobility as true indicators of meaningful success.
To achieve this, leaders should seek ongoing feedback from their teams. By consistently examining and reflecting on how employees feel about their work environment, organizations can course-correct before small problems become big ones. It’s crucial to understand that informal, real-time check-ins are just as valuable as formal processes.
5. Commit to Continuous Development
The latest global workplace report makes one truth abundantly clear: organizations that actively encourage growth and development see thriving levels spike from 28% to as high as 50%. This isn’t about checklists—it’s about integrating development into the organization’s DNA as a shared commitment to success.
A powerful question I often encourage leaders to reflect on is, “How am I investing in my people not only as workers but as human beings?” This might include creating mentorship programs, giving employees ownership of special projects, or offering skill-building workshops that go beyond job-specific tasks.
Leadership That Makes a Difference
Navigating this seismic shift in the workforce requires more than business acumen; it requires heart. The real difference-makers in our organizations will be those who see their people not as cogs in a machine, but as complex, ambitious, and capable individuals.
Meaningful engagement isn’t about fancy perks or hollow gestures—it’s about making people feel seen, heard, and valued.
The challenges outlined in Gallup’s latest workplace report are daunting, but they also present an unprecedented opportunity for leaders to reimagine the workplace. By investing in managers, prioritizing well-being, and embracing flexibility, organizations can address disengagement and empower their people to thrive.
The time to act is now. Leaders must rise to the occasion and create workplaces where people and businesses thrive together. The future of work depends on it.