Gallup: Manager Engagement Plunges to 27%, Costing $9.6T in Productivity

Gallup's 2025 report reveals only 27% of managers worldwide are engaged, down from last year, amid tech changes and flexible work pressures, costing $9.6 trillion in productivity. Young and female managers suffer most, exacerbating workforce malaise. Companies must invest in training and support to reverse this trend.
Gallup: Manager Engagement Plunges to 27%, Costing $9.6T in Productivity
Written by Corey Blackwell

In the corridors of corporate power, a quiet crisis is unfolding: managers, once seen as the backbone of organizational success, are increasingly disengaged from their roles. According to a recent report from Gallup, only 27% of managers worldwide report feeling truly involved and enthusiastic about their work—a sharp three-point drop from the previous year. This revelation, highlighted in Slashdot’s coverage of Gallup’s State of the Global Workplace 2025, paints a troubling picture for businesses grappling with post-pandemic shifts.

The decline isn’t isolated. Overall employee engagement has dipped to 21% globally, costing the world economy an estimated $438 billion in lost productivity last year, as per Gallup’s data. Managers, however, are bearing the brunt, with their disengagement exacerbating broader workforce malaise. Factors like rapid technological changes, including the rise of AI, and evolving expectations around flexible work are cited as key culprits, leaving many in leadership positions feeling overwhelmed and undervalued.

The Demographic Divide in Managerial Morale

Drilling deeper, the data reveals stark disparities. Young managers under 35 and female managers are reporting the lowest levels of involvement, according to insights from Gallup’s chief scientist Jim Harter, as discussed in a Business Insider analysis. These groups often juggle heightened responsibilities amid hybrid work models, where the lines between professional and personal life blur, leading to burnout.

Posts on X (formerly Twitter) echo this sentiment, with users sharing anecdotes of managerial stress amplified by AI-driven disruptions and remote team dynamics. One viral thread from industry influencers noted how younger leaders feel ill-equipped for the emotional labor of guiding teams through uncertainty, aligning with Gallup’s findings that only 33% of global workers feel they are thriving.

Economic Ripples and Corporate Costs

The fallout is measurable and massive. Disengaged managers contribute to a staggering $9.6 trillion in untapped productivity potential worldwide, Gallup estimates, equivalent to nearly 9% of global GDP. Companies face higher turnover—Amazon’s warehousing operations, for instance, reportedly exceed 100% annual churn, as surfaced in various X discussions and corroborated by talent analytics from Compono’s 2025 HR statistics report.

This managerial malaise trickles down, eroding team performance and innovation. Primeast’s compilation of 2025 engagement stats, available at their insights page, underscores how poor leadership engagement directly hampers retention and profitability, with disengaged workforces costing businesses billions in absenteeism and reduced output.

Strategies for Reengagement: A Path Forward

Yet, hope lies in targeted interventions. Experts advocate for bolstering managerial training in psychological safety and meaningful work assignment, as highlighted in edays’ 2025 engagement overview at their news section. Companies like those profiled in Cerkl Broadcast’s stats roundup (Cerkl’s blog) are leveraging predictive analytics and regular feedback loops to monitor sentiment in real time.

Moreover, fostering cultures of recognition and growth can reverse the trend. Inclusion Geeks’ breakdown of Gallup’s report (Inclusion Geeks article) emphasizes that empowering managers with AI tools for efficiency, rather than overload, could rebuild enthusiasm. As one X post from a HR tech influencer put it, “Build values, build connections—that’s how teams thrive.”

Looking Ahead: The Imperative for Change

The stakes are high as we navigate 2025’s evolving work environment. With the employee engagement market projected to reach $14.7 billion by 2032, per Credence Research’s outlook (OpenPR release), investment in managerial well-being isn’t optional—it’s essential. BambooHR’s newsroom coverage (BambooHR report) warns of a deepening crisis if ignored, but proactive firms are already pivoting toward holistic support systems.

Ultimately, reversing this engagement slump demands a reevaluation of how we value those who lead. By addressing root causes like workload imbalance and technological anxiety, organizations can unlock not just managerial potential, but the full spectrum of workforce vitality. As Gallup’s data and real-time web discussions suggest, the time to act is now, before disengagement becomes the new normal.

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