Why Manager Engagement Matters Now More Than Ever

Gallup’s 2025 State of the Global Workplace report was published recently—and it’s sounding the alarm. Last year, global employee engagement declined, leading to an estimated $436 billion in lost productivity. The percentage of engaged employees worldwide dipped from 23% to 21%, marking a return to levels we haven’t seen since the height of the COVID-19 lockdowns. This regression is a stark reminder of the challenges we faced during the pandemic and the work that still needs to be done to fully recover.

So, what’s behind this downward trend?

According to Gallup’s executive summary, a major contributor to this decline is the drop in manager engagement. In 2024, manager engagement fell from 30% to 27%. The drop was even steeper for managers under 35 (down five points) and female managers (down seven points). This data highlights a crucial truth: when managers disengage, teams follow. This is not just a leadership issue—it’s a business risk that needs to be addressed immediately.

A Personal Story: The Impact of Manager Engagement

Let’s take a moment to consider the story of Sarah, a young manager at a marketing agency. Sarah had always been passionate about leading her team, but lately, she felt overwhelmed and unsupported. After losing a few key accounts, her engagement waned, and she began to struggle with daily tasks. Instead of energizing her team in team meetings, she found herself going through the motions, leading to a culture of disengagement.

As Sarah’s enthusiasm dwindled, so did the morale of her team. They started showing up late, missing deadlines, and ultimately, the whole department felt the impact. What had once been a creative hub transformed into a place marked by stress and frustration.

One day, during a particularly rough week, Sarah received an email from a colleague congratulating her on an innovative idea she had proposed previously—an idea that had gone unacknowledged amidst the chaos. That email sparked a light in her. Sarah realized that her own mindset had directly affected her team, and they were mirroring her disengagement. It was a wake-up call.

Determined to turn things around, Sarah sought training in effective management techniques and reached out to her leaders for additional support. She also began to focus on her well-being, seeking rejuvenation outside of work through exercise, activities with family and friends, and mindfulness practices. Slowly but surely, she re-engaged with her team, and they began to rally as well.

Engagement and Well-Being Go Hand in Hand

Gallup reinforced the strong connection between employee engagement and overall well-being. When people feel better about their lives—both at work and beyond—they’re more likely to show up fully engaged. Unfortunately, managers like Sarah often experience the sharpest declines in well-being. In fact, North America and Australia/New Zealand saw historic lows in well-being last year. North America also reported the highest levels of daily stress, with 50% of workers saying they felt stressed “a lot of the day yesterday.” Yet, despite this, the U.S. and Canada reported the highest engagement levels globally at 31%.

How Can We Support Our Managers?

So, what does all this mean for you? What can we do to support our managers and boost workplace engagement? Gallup has identified three actions that could make a real difference:

1. Invest in Training for Managers: Can you believe that nearly half of all managers (44%) reported not receiving any training for their roles? That’s a huge gap! Providing proper training is essential for re-engaging our managers.

2. Teach Vital Coaching Techniques: Effective coaching and best practices can lead to a remarkable 22% increase in manager engagement. This sounds like a win-win!

3. Encourage Ongoing Development: Actively promoting development opportunities can enhance managers’ well-being by an impressive 32%. In fact, having someone at work who supports their growth can skyrocket a manager’s well-being by 50%!

A Call to Action

So, let’s take a lesson from Sarah’s journey. The support you provide to your managers is critical, as their engagement directly impacts everyone else in the workplace. Together, we can create a thriving environment where both managers and employees feel valued and engaged. Let’s invest that time, energy, and resources into our leadership teams to foster prosperous workplaces for all.

Why This Matters for You

If you’re in a leadership role—whether in HR, operations, or the C-suite—this is your moment to pause and reflect:

• Are your managers trained and supported?

• Do they feel equipped to coach and develop others?

• Are you investing in their well-being as much as their performance?

Because when managers thrive, your people thrive. And when your people thrive, your business does too.

At Inspired Training, we’re here to help you turn insight into action. From manager coaching to leadership development cohorts, we’re passionate about helping organizations build workplaces where everyone can grow.

Let’s build a culture where managers feel empowered, engaged, and energized—because they deserve it, and your business depends on it. I urge you to take this information and use it as a catalyst for change within your organization. Let’s work together to create a thriving workplace where everyone, from managers to employees, can reach their full potential.