What’s the global state of employee engagement in 2025?
Employee engagement: it’s a much-discussed topic, but how is it looking in 2025?
Gallup has just released its latest State of the Global Workplace 2025 Report, which takes a look at the state of employee engagement around the world, and gives a wide-ranging view of how employees feel they are coping in their work and personal lives.
The global state of employee engagement in 2025
According to Gallup’s report, 21% of the world’s employees feel engaged at work. That number has declined from 23% in 2023 – only the second time in 12 years that a decrease in employee engagement has occurred (the other decrease was in 2020).
People managers are the group that has seen the biggest decrease in engagement – falling from 30% to 27%. Younger managers (aged 35 and under) have seen the biggest decrease of five percentage points, and female manager engagement has dropped by seven percentage points.
Considering the seismic shifts that workplaces have seen since the COVID-19 pandemic (in the form of economic and political turmoil, an explosion in remote and hybrid working, digital transformation, a hiring boom and bust, and disrupted supply chains amongst other factors), it’s perhaps no surprise that the effects of all of that are trickling down to employees who are showing signs of struggling to engage and thrive at work.
Regions with the highest employee engagement
United States and Canada
31% engaged
Latin America and the Caribbean
31% engaged
South Asia
26% engaged
Regions with the lowest employee engagement
East Asia
18% engaged
Middle East and North Africa
14% engaged
Europe
13% engaged
Why is employee engagement important?
Employee engagement is crucial for greater business success and outcomes. Here are five reasons why:
- Increased productivity: Engaged employees are motivated and committed to their work, which, naturally, leads to better performance
- Improved retention: When people feel connected to their workplace and believe in its values and goals, they’re more likely to stay
- Better customer service: Engaged employees are more likely to go the extra mile for customers, enhancing the service they receive
- Greater innovation: Employees who feel heard, valued and able to speak up are more likely to share ideas, contribute to discussions, be motivated to problem-solve, and work collaboratively with their colleagues
- Stronger workplace culture: Engagement fosters a positive working environment where collaboration, accountability, recognition and morale thrive – improving the workplace for all
How does employee engagement affect absence?
If employees are not engaged at work, they’re more likely to experience higher levels of absence. Not feeling motivated, or a growing sense of resentment towards their employer, might cause them to call in sick more often as a way of avoiding the workplace.
What’s more, people managers are one of the biggest driving factors behind motivating employees, inspiring them, and offering support. As we’ve seen from Gallup’s findings, managers are feeling significantly less engaged now than in 2023 – so it’s fair to assume their team members are also feeling the effect of that.
Other factors which can lead to higher absence and lower engagement include stress and burnout. In the report, 40% of employees admitted to experiencing a lot of stress on a daily basis, potentially leading to illness and more time off from work.
Without adequate absence management, organisations might be facing both an absenteeism and engagement problem. Knowing how often your employees are absent, and why, could be crucial in uncovering issues within your workforce.
How to boost employee engagement in 2025
Boosting employee engagement doesn’t happen overnight, but it can be worked on quickly in practical ways. Often the most simple things can be the most effective, and it starts from the top of the organisation. Here are three ways to boost employee engagement in 2025:
- Regular and transparent communication: Foster a culture where senior leaders in the business regularly provide updates and company goals. Communication channels such as town halls, one-to-one check-ins, and internal newsletters are a good place to start. Employees value honesty, and prefer not to be kept in the dark. Even sharing negative news is better than staying silent, as employees are more likely to appreciate knowing the facts about what’s going on behind the scenes rather than hearing rumours or fearing the worst. Employees that feel informed and valued are more likely to be committed to their employer, keen to work towards shared goals.
- Recognition and reward: Implement methods for recognising both individual and team contributions. These can be through shout-outs in meetings, peer-nominated awards, or performance bonuses. Even simple, consistent recognition from people managers and senior leaders can significantly motivate an employee to keep up their good work.
- Growth and development opportunities: Support employees’ career goals by providing access to training, mentorship, knowledge sharing and clear pathways for progression. When an employee can see a future at an organisation, they’re more likely to stay and remain committed.
Employee engagement might have taken a dip in 2025, but there are effective initiatives that organisations can implement reasonably quickly to address it – leading to higher performance and productivity, reduced absence, and better business outcomes long-term.
