Productivity Is Quietly Dropping Across The Workforce. This May Be Why
Declining employee productivity won't slow down anytime soon.
Gone are the days when people worked until they couldn't. While many business principles stay the same, the composition and mindset of the workforce are evolving rapidly—and so are the productivity risks. A quiet exit is happening across workplaces. According to a recent Gallup report, employees have been steadily working fewer hours over the past five years—dropping from an average of 44.1 hours in 2019 to 42.9 in 2024.
There's a generational divide: workers under 35 have reduced their hours by nearly two, while 35-and-over workers have cut just under one. That equates to a full workweek lost per year for 35-and-over employees and two for employees under 35. On the surface, the difference may appear small. But across an organization, this shift—if left unaddressed—can compound into significant productivity and engagement issues.
This productivity dip isn't just about time on the clock—it's part of a broader transformation in workforce values and well-being. At the heart of the issue is burnout, which is costing companies millions annually. But it's not just physical exhaustion—it's often mental, emotional, and spiritual depletion that eventually manifests itself in physical decline.
Employee engagement is also dropping. In 2024, engagement levels dropped to their lowest point in a decade, with only 31% of workers actively engaged, according to another Gallup report. Workers under 35—again, the same group working fewer hours and experiencing deeper productivity losses, were the most affected. As values and priorities shift, younger generations want more meaning, alignment, and employer support. Salary matters, but it's not enough. Without a sense of purpose and connection, disengagement sets in.
As the mental and emotional toll of work increases across all levels, including the C-suite, leaders must rethink how they define and implement wellness. Focusing on physical health isn't sufficient. What's needed now is a plan that genuinely encompasses mental and emotional well-being. It's about building a culture to support optimal energy management, psychological safety, and sustainable performance.
According to LinkedIn's Workforce Confidence Survey, workers are not only more stressed but also reporting record lows in confidence. Uncertainty regarding the future of the workplace (AI integration, among other things) is steadily affecting people's morale and performance. While older generations often prioritize salary and stability, younger employees seek more integration.
Millennials and Gen Z report higher productivity, loyalty, and well-being when their work aligns with their values and identity. When that alignment is missing, purpose suffers—and with it, output. Interestingly, nearly half (45%) of employees now report that AI is helping them become more efficient. This means old proxies for productivity, such as time at the desk or visible busyness, are quickly becoming obsolete. The organizations that adapt will win. Those that don't will struggle to retain top talent.
Disengagement and burnout aren't primarily a function of hours worked and workload. They're deeply influenced by the environments created and how people are led. Clear expectations, precise communication, thoughtful connecting, and a focus on energy rhythms are excellent foundations for organizations looking to improve their levels of productivity, and ultimately offset against the quiet exit. The companies that embed this into their DNA will quietly separate themselves from the pack.
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