The 5 Reasons for Declining Workplace Engagement and How to Fix Them According to the 2025 Gallup Study

1. Manager Burnout, the Hidden Epicenter

Managers—especially those under 35 and women—are among the most affected by burnout. Since the pandemic, they’ve been caught between leadership demands and changing team expectations (remote work, digital transformation, reduced budgets). A burned-out manager contaminates their team: less energy, risk of micromanagement or withdrawal, and less recognition for employees. “If the manager breaks down, the team follows”—a domino effect. 56% of managers worldwide experience this pressure. Acting on manager well-being is therefore not a “nice-to-have”: it’s the central lever to stop the cascade of disengagement.

2. Managers Promoted but Not Trained

Only 44% of managers have received appropriate training for their role. Promotion is often based on technical skills, not on people management. Untrained managers are twice as likely to be actively disengaged. Key skills are missing: communication, conflict management, motivation, coaching. Basic training can cut disengagement in half and reduce stress. Investing in management training is one of the fastest ROIs for performance and workplace climate.

3. The Talent Exodus Is Accelerating

50% of employees worldwide are monitoring the market or looking for a new position. This isn’t primarily about salary but about engagement and relationship with management. Replacing an employee costs 50 to 200% of their annual salary; departures take expertise and motivation with them and contaminate others (ripple effect). Organizations that invest in engagement can create nearly $10 trillion in additional value. Retention depends on management quality and daily recognition.

4. Workplace Well-Being Is Eroding

40% of employees experience daily stress, 22% feel lonely, only 33% are thriving. This malaise affects mental health, performance, and absenteeism. In organizations where engagement exceeds 70%, indicators of malaise are cut in half. Engagement and well-being go hand in hand; it’s essential to support manager well-being daily—through support, peer communities, co-development—so they can in turn support their teams.

5. AI Is Arriving but No One Is Really Ready

Artificial intelligence is transforming all sectors, but few employees and managers are prepared. Either AI becomes an engagement amplifier (freeing up repetitive tasks, refocusing on relationships), or an additional stress factor (fear of replacement, overload, opacity). Organizations that integrate AI while maintaining human engagement (training, clear vision, dialogue) see their productivity improve; others widen the gap with their teams.

Concrete Actions for Leaders and HR

• Train managers in change management, coaching, and relational skills (feedback, listening, recognition).
• Support manager well-being: facilitate communities, co-development, spaces for dialogue, training with AI to make it an ally.
• Prepare teams and managers for AI transformation with a clear vision and ongoing support.
• Measure engagement and well-being regularly to adjust actions and prioritize struggling managers.

In a nutshell…

• Five causes: manager burnout (epicenter), lack of training, talent exodus, eroding well-being, unprepared AI.
• Solution: train, coach, support managers; create communities and prepare for AI; measure and prioritize.
• The stakes: when managers thrive, teams follow; investment in management is the #1 lever against disengagement.

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