The State of the Workforce: Key Takeaways from Gallup’s Latest Research

As organisations navigate a post-pandemic world shaped by hybrid work models, shifting employee expectations, and economic uncertainty, Gallup’s latest State of the Global Workplace report offers a compelling snapshot of what’s happening in the world of work today. The data, drawn from surveys of thousands of employees worldwide, provides a clear message to leaders: employee engagement is stagnating, wellbeing is under threat, and managers are the linchpin to turning things around.

Here is our take on Gallup's Report with the highlights and an analysis of what this means for businesses, leaders, and employees alike.

1. Stagnant or Declining Employee Engagement 

Only 23% of global employees are engaged in their work. While this marks a slight increase globally, engagement in some regions—such as the U.S. and Canada—has declined for the second consecutive year. In the United States, only 33% of employees are engaged, down from a peak of 36% in 2020.

Engagement is not just a feel-good metric—it correlates strongly with key performance outcomes such as productivity, profitability, absenteeism, and retention. Stagnant engagement reflects a broader disconnection between workers and their companies, particularly as the pandemic reshaped work dynamics and expectations.

So What: Leaders must recognise that strategies that worked pre-pandemic may not be effective anymore. A renewed focus on purpose, communication and growth is essential to re-engage teams. Feeling connected to your strengths or talents is a great way for individuals to be clear on what missions align with their preferences, how they like to be communicated to and what type of leadership will maintain their engagement. Imagine a team of individuals all showing up with this power!

2. Stress Levels at Record Highs

Perhaps more concerning is the continued rise in employee stress. 44% of employees worldwide report experiencing a lot of stress the previous day—the highest level Gallup has ever recorded. Stress levels have remained alarmingly high since the onset of COVID and show no signs of decreasing.

So What: We are in a wellbeing crisis. Chronic stress not only impairs health but also undermines engagement and performance. Organisations must invest in building cultures that prioritise psychological safety, manageable workloads, and healthy work-life boundaries. In our StrengthsTrail Program, we give particpants the tools to link their strengths to Gallup's Wellbeing at Work and Burnout intervention guide as one way of supporting people to improve their stress response. 

3. The Manager’s Role Is the Key

Managers account for 70% of the variance in employee engagement. In a time of massive change, the quality of management has become even more consequential. Employees crave clarity, support, and growth opportunities and they look to their Managers for all of these. Yet many managers are burned out themselves. They are caught between upper leadership expectations and team needs, often without the training or support to manage both effectively.

So What: Organisations must invest in developing and supporting their Managers—not just their technical skills, but in emotional intelligence, coaching, and communication. Great managers multiply engagement, while poor ones drive attrition. Starting with Managers who understand their own strengths is a good step in helping them to understand the individual and collective strengths of their teams, and leverage these for success.

4. Quiet Quitting Is a Symptom, Not a Trend

"Quiet quitting” defined as employees who are not engaged and are psychologically detached from their work. Globally, nearly 6 in 10 employees fall into this category. No need to view quiet quitting as a TikTok trend—it’s a decades-long pattern tied to poor management and unclear expectations.

So What: Quiet quitting is not new—it’s the result of failing to meet core engagement needs like feeling cared for, having development opportunities, and understanding how your work contributes to a larger why? Solving it requires a culture shift, not a crackdown. Our StrengthsTrail participants report upon completion of the Program that they feel clearer on their purpose and what engages them. 

5. Hybrid Work Requires Better Communication and Culture

Hybrid work in some shape or form is now a permanent feature in many industries. Unsurprisingly, employees prefer flexibility—but it must be done right. Remote capable workers with flexible arrangements report higher engagement than those fully on-site, if communication and expectations are clear.

So What: Leaders must be intentional about how they lead in a hybrid workplace. Regular check-ins, clarity of goals, and opportunities for collaboration are more important than ever. Culture doesn’t happen by accident—it must be designed and reinforced across digital and physical spaces. Ensuring you have the right technology tools to connect and engage virtually, not just for meetings but casual chats and check ins. 

6. Wellbeing Is a Business Imperative

Gallup’s report underscores the link between employee wellbeing and organisational outcomes. When team members thrive in both their personal and professional lives, they are significantly more productive, engaged, and resilient. Unfortunately, only 24% of employees say their organisation cares about their wellbeing—a number that has declined over the past three years.

So What: Wellbeing commitment isn’t just about offering yoga or mental health days. It’s about creating a culture of empathy, flexibility, and support. Leaders should measure and manage wellbeing just as they do performance. A key way organisations can demonstrate their commitment to wellbeing, in a way that 'suits' all people is to offer their employees training and development that is just for them as a person and improves them personally and professionally. 

Final Thoughts: What Can You Do?

Gallup’s research is a wake-up call. The solution isn’t a new perk or policy—it’s a fundamental recommitment to people-centered leadership. Here are three clear take aways for organisations:

1. Prioritise Manager Development: Equip Managers with coaching skills, EQ upskilling, and the tools to lead hybrid teams effectively.

2. Measure Engagement and Wellbeing Continuously: Don’t rely on annual surveys. Pulse surveys and regular check-ins help track sentiment in real-time.

3. Rebuild Culture with Purpose: Help people connect their work to a larger mission, and involve them in shaping their workplace of the future.

The world of work is changing, but the fundamentals remain: people want to be seen, heard, and supported. Gallup’s latest data confirms that organisations that get this right will be the ones that thrive. If you are keen to integrate strengths training or coaching into your people plans in the next financial year, please get in touch with us at StrengthsTrail.