A recent report by Gallup reveals a troubling stagnation in global employee engagement and a decline in employee wellbeing throughout 2023, reversing several years of steady improvements.
Gallup’s State of the Global Workplace report highlights that only 23% of employees globally are engaged at work, a figure that has remained unchanged. The highest regional engagement was observed in the U.S. and Canada, where 33% of employees are engaged, with women reporting higher engagement (35%) compared to men (31%).
“Our research has shown that engagement has a stronger effect on organizational performance during a tough economy,” said Jim Harter Gallup’s chief workplace scientist. Gallup estimates that low engagement costs the global economy $8.9 trillion, equivalent to 9% of global GDP.
The report quoted “Steven,” a line operator in Canada, as an actively of someone who is actively disengaged.
“I could push it, but I’m so frustrated with the way things are going that day that I’m like, ‘You know that I’m gonna do? I’m gonna do nothing,” he said.
Engagement levels by region
| Region | Percentage Engaged | Percentage-Point Change |
|---|---|---|
| United States and Canada | 33% | +2 |
| Latin America and the Caribbean | 32% | +2 |
| South Asia | 26% | -7 |
| Southeast Asia | 26% | 0 |
| Australia and New Zealand | 25% | +2 |
| Post-Soviet Eurasia | 24% | -2 |
| Sub-Saharan Africa | 20% | 0 |
| East Asia | 18% | +1 |
| Middle East and North Africa | 14% | -2 |
| Europe | 13% | N/A |
Mental health and wellbeing
The report also underscores the critical role of work in influencing employees’ mental health and overall wellbeing. While not all mental health issues are work-related, work significantly impacts life evaluations and daily emotions. In the U.S. and Canada, 53% of employees report thriving, compared to a global average of 34%.
However, a worrying 20% of the world’s employees experienced significant loneliness the previous day. Gallup’s findings suggest that social isolation and chronic loneliness severely affect physical and mental health, though work can mitigate these feelings. Notably, younger employees under 35 saw a decline in their overall life satisfaction, with global thriving rates dropping from 35% to 34% in 2023.
Managerial influence on wellbeing
Managers play a crucial role in employee engagement and wellbeing. Despite being more likely to be engaged and thriving, managers report higher levels of stress, anger, sadness, and loneliness than non-managers. In the U.S. and Canada, 49% of employees experienced stress, with women reporting higher stress levels (54%) compared to men (45%).
Harter highlighted the importance of managerial practices in fostering engagement, particularly in the context of hybrid and remote work.
“A core habit for effective management is providing weekly meaningful feedback for each person on your team,” Harter said. He stressed that physical distance often translates into psychological distance, necessitating greater intentionality and communication in managing remote teams.
Organizational implications
The rise in hybrid work has complicated people management, requiring organizations to adapt to maintain high levels of engagement and wellbeing. Despite the global engagement rate of 23%, some organizations achieve significantly better results through effective management practices, it said.