Gallup’s 2024 Global Workplace Engagement Report provides a comprehensive overview of the current state of employee engagement worldwide and its economic impacts. This report reveals parallel findings to Moodivation’s research at the beginning of the year, showing that only a quarter of the global workforce is engaged and excited about their jobs. Let’s explore the key findings of the report, the critical role of managers, the interaction of macroeconomic factors, and the impact of work policies on worker well-being.
Global Engagement Rate Unchanged: 23%
According to the report, the global employee engagement rate remained steady at 23% in 2022. This rate indicates that only a quarter of the global workforce is engaged and enthusiastic about their work. 62% of employees are disengaged, meeting only minimum requirements, and 15% are actively disengaged and often seeking new jobs.
Cost of Disengagement Increased
The Gallup report highlights that low employee engagement costs the global economy approximately $8.9 trillion annually, equivalent to 9% of global GDP. This data underscores the necessity for organizations to proactively address engagement issues. The substantial financial losses due to low engagement compel organizations to accelerate their steps to increase employee engagement.
Key Findings
Managerial Impact:
Managers significantly impact employee engagement, with 70% of the variance in team engagement attributed to managers. Managers who exhibit high engagement lead to higher engagement among non-managerial employees. Therefore, improving managers’ engagement levels positively affects overall employee engagement.
Stress Among Managers:
Despite their critical roles, managers often experience more negative emotions than non-managerial employees. According to the report, managers report higher levels of stress, anger, sadness, and loneliness. This can negatively affect their ability to effectively support their teams. Supporting managers is crucial for promoting overall employee well-being.
Best Practices:
Leading organizations prioritize hiring and developing managers who can effectively guide their teams. These organizations integrate engagement strategies throughout the employee lifecycle, from recruitment to onboarding, coaching, and development. They also focus on employee well-being, providing resources to help employees succeed both at work and in life.
Factors Affecting Engagement
Macroeconomic Factors:
The report emphasizes the complex relationship between macroeconomic factors and employee engagement. Better job markets reduce the number of actively disengaged employees but do not significantly contribute to higher engagement rates. This indicates that economic recoveries can reduce dissatisfaction but are insufficient to create a substantial impact.
Work Policies:
Strong labor laws related to fair wages, safety, and family responsibilities correlate with higher employee well-being. However, worker protections alone are not sufficient to increase engagement. Effective engagement practices can enhance the benefits of strong worker protections.
Employee Well-being:
A significant portion of the global workforce struggles with mental health issues. The report reveals that 20% of employees experience daily loneliness, with remote workers feeling more isolated than those in the workplace. Additionally, the decline in well-being among younger employees highlights the importance of targeted support for this demographic group.
Improvement Strategies
Focus on Engagement:
Organizations should prioritize engagement strategies that address both managerial practices and overall organizational culture. This includes regular, meaningful feedback, goal setting, and recognizing employees’ unique contributions.
Support Mental Health:
Providing mental health resources and creating a supportive work environment is critical. Organizations must ensure employees have the tools and equipment they need to perform effectively.
Adapt to Changing Work Environments:
With the rise of hybrid work models, organizations must adapt management practices to effectively support both remote and on-site employees. This involves fostering a sense of community and ensuring remote workers do not feel isolated.
Gallup’s “Global Workplace Engagement: 2024 Report” offers valuable insights into the current state of employee engagement and its wide-ranging impacts. By focusing on effective management practices, supportive work policies, and comprehensive well-being strategies, organizations can create environments where employees are engaged, productive, and satisfied. This, in turn, enhances organizational success and positively contributes to the global economy. Referring to Gallup’s full report can provide a deeper understanding of these insights and help organizations take strategic steps.
At Moodivation, we play a crucial role in increasing employee engagement rates with our technology that supports employee experience. The feedback culture we create in companies makes it easier for decision-makers to make data-driven decisions and take the right actions. We recommend reviewing the data we presented in the Turkey Employee Engagement Survey alongside the Gallup research once again. To achieve real efficiency, we need to improve collaborations and organizational cultures. Emphasizing that we are ready for collaboration, we remind you that you can reach us anytime.