Poor Workforce Engagement Cost World Economy $438 Billion In 2024
The global percentage of engaged employees slipped from 23% to 21% in 2024, with managers ... More particularly demotivated and disengaged.
Workforce engagement declined around the world last year, costing the global economy about $438 billion in lost productivity, according to new research conducted by Gallup.
According to the consultancy, the percentage of employees around the world who indicated that they felt 'engaged' at work slipped from 23% to 21% in 2024, with managers feeling particularly demotivated and disengaged.
Over the past 12 years, this measure has only declined twice, Gallup noted, the other time being in 2020. And last year's two-point drop was equal in scale to the decline that occurred in that year, as Covid-19 upended work and life and forced billions of people into lockdown.
'We are witnessing a pivotal moment in the global workplace,' wrote Gallup CEO Jon Clifton in commenting on the findings, noting that engagement is faltering just as artificial intelligence is transforming every industry. 'While few employees have harnessed AI's full potential, its rapid advance will force every organization to adapt, whether they are ready or not,' Clifton added.
The decline in managers' engagement was particularly stark across all ages and genders, but young, female managers were most affected. Engagement among managers younger than 35 fell by 5 percentage points between 2023 and 2024 while female manager engagement dropped by 7 percentage points.
In addition to only 21% of respondents saying that they felt engaged last year, some 62% said that they were 'not engaged,' which was unchanged from the previous year, and 17% said that they were actively 'disengaged,' a rise of 2 percentage points from 2023.
When asked to evaluate their lives, 58% said that they were 'struggling' and 9% said that they were 'suffering' with only 33% saying that they were 'thriving.' Reflecting on the job market, half of all respondents said that they were watching for or actively seeking a new job.
In terms of geography, the United States and Canada topped the rankings in terms of engagement, with 31% of employees saying that they feel engaged, compared to just 13% across Europe.
Gallup's research on employee engagement is conducted annually. A total of 227,347of respondents were polled for the 2024 numbers with data obtained between April 2024 to December 2024.
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