A new global report finds engagement among leaders has dropped
Employee engagement has dropped for the first time in four years, according to a new global survey, and the group struggling the most are the very people business relies on to lead and motivate – managers.
Gallup’s latest State of the Global Workplace 2025 report shows engagement amongst managers fell from 30% to 27% globally.
“Manager burnout eventually leads to declining performance, increased absenteeism and increased turnover — impacting the people they lead and the organization itself,” the report says.
“When we consider the decline in both manager life evaluations and employee engagement, a deteriorating workplace environment is the common denominator. As with engagement, the consequences are existential for a business.”
The Gallup results come after a separate report released in early April found workforce engagement in Australia has declined to 16%, down from 18% last year.
HRD spoke with Associate Professor Dr Will Felps from the University of New South Wales Department of Business and Management – who describes the findings as “disturbing.”
“Middle managers are the glue of many organisations and it’s critical they perform,” Dr Felps told HRD. “They’re important translators between above and below – but in a workforce where demands are increasing and resources decreasing, there’s no wonder we’re seeing disengagement.”
“Everything depends on people at all levels being able to perform well. If you’re miserable, chances are you’re not performing to your best.”
Dr Felps noted that miserable managers undermine the ability for organisations to grow and succeed – citing the ability for things to “fall through the cracks” when things aren’t done properly.
“It’s a cascading effect, really, because when you look up and see your manager disengaged or underperforming – it’s easy to take that as the norm. When you’re overworked, it’s also easy to lash out at those underneath, which can cause other problems, too,” Felps emphasised.
Addressing the issue, however, is far from straightforward, Felps warned.
With potential pressure coming to managers from the top of the company – and workers beneath having their own expectations regarding their career – Dr Felps told HRD that many managers experience a ‘sandwich’ of problems.
“Demands from above and below are constantly changing, especially with younger workers coming into the picture, so those in the middle are getting squeezed. They may have increasing demands but not enough resource.”
Felps added that with changes to management structures – many have a “larger span of control” – making workflows more difficult.
“The key is to make managers feel wanted and to give them a purpose,” Felps said, “Giving them more people to manage won’t give them any kind of advantage – it will just make them stressed.”
Felps noted the way to fix the issue isn’t a one-size-fits-all method – but looking at the business more holistically to identify issues because, according to a U.S. study, burnout is costing employees as much as $21,000 USD per employee.
"Burnout is pervasive and it's costing organizations millions each year," said Molly Kern, professor at the Zicklin School of Business at Baruch College.
“Giving managers more authority to enact change would be a big one for me,” Felps said, “Because it’s very easy to sometimes see middle managers as the messenger between C-Suite and employee. Training new managers in a timely manner is also very important – sometimes that’s something that’s overlooked because of the skills they have in other areas.”
“Upskilling and training should be put in place from day one – not when you’re treading water and barely surviving. It can happen quite often as middle managers being overlooked. That’s oftentimes the solution to a lot of problems, giving managers the skills to identify and solve the problem before it happens,” Dr Felps added.
With Australia having clearer policies in place around work-life balance, Felps told HRD this is an opportunity to help reengage those that don’t feel motivated.
“Work with managers, not against them. Look at the data you’ve got and try and make their jobs easier. If they can work from home every once in a while, let them. If AI can lighten the load, let it. Australia has a competitive advantage around expectations and work and the right to disconnect, so let your employees disconnect and review practices at management level. That’s the key.”
