Employee engagement is falling in 2025 – is it time for a workplace reset?

Let’s face it, the state of the nation and the world is pretty dire right now. Every which way we turn, there are reports of uncertainty over jobs, the rising cost of living and how unhappy, stressed and lonely we are.  

Each year, Gallup’s State of the Global Workplace report provides an important snapshot of how people are feeling at work. It’s no surprise that this year it paints a troubling picture. Engagement is down. Manager wellbeing is seriously declining. There is an emotional cost of work. And the underlying cracks in the employee experience are coming harder to ignore.  

But Gallup’s findings are only part of the story. Insights from Accenture Life Trends 2025, Randstad Employer Brand Research, and GWI’s Redefining the Workplace show a wider shift underway. People aren’t just rethinking how they work. They’re rethinking what work means. 

What people want from work is changing

To understand where engagement is heading, we need to understand what people are really looking for in their working lives. 

Randstad’s global data shows employees are no longer driven by salary alone which is surprising in itself given how much costs are rising. Work-life balance, wellbeing, purpose and values are just as important – especially for younger workers. 

Work-life balance now tops the list of reasons people leave a job. Gen Z and Millennials rate mental health support and flexible working as key priorities. And while most employers believe they’re delivering on these needs, employees don’t always agree. There’s a growing gap between the promise and what employees actually experience. 

Work isn’t just a contract anymore

Accenture describes this change as a shift from transaction to relationship. As they put it, “work has to earn its place in people’s lives now.” 

People want roles that fit around life, not the other way around. They want to feel involved, understood, and part of something meaningful. And they expect their managers to reflect that by being human and leading with empathy and clarity. 

In this context, Gallup’s reported drop in engagement – from 23% to 21% – is more than just a decline. It’s part of a much larger cultural shift of how we are seeing the role of work in our lives. 

“We believe that leaders who see the value of effecting positive change and creating the conditions that naturally raise enthusiasm in their teams will emerge as winners. Those who ignore what’s happening will increasingly notice a lack of dignity at work, resulting in poor culture, work and motivation—and worse outcomes for customers and business growth”

Accenture Life Trends 2025

Managers are struggling to hold it all together

Gallup’s data points to one particular group under growing pressure: managers. 

Engagement among managers has dropped to 27%. The decline is even more significant for younger managers and for women.  

 Managers are expected to drive performance, care for their teams, adapt to change and absorb stress, often without the clarity, support, training or capacity they need.  

Why does this matter? Because managers are still the single biggest factor in team engagement – Gallup attributes around 70% of the variance of employee engagement outcomes are down to manager effectiveness. They are the glue that often holds teams together. When they’re disengaged, it cascades. And when they’re unsupported, they struggle to carry both performance and people.  

The emotional impact is becoming clear. Life satisfaction is falling. Stress, sadness and loneliness remain high, particularly in hybrid and remote teams. For many managers, the pressure is becoming even harder to sustain and something has to give. 

Meanwhile, Gen Z are rewriting the rules

GWI’s Redefining the Workplace report offers another lens. Gen Z haven’t just entered the workforce. They’re reshaping it. 

They’re less focused on climbing a corporate ladder and more likely than other generations to value side hustles, creative projects and autonomy. They’re actively seeking connection and community at work, not just a role or salary. And they’re choosing balance over burnout. 

They also expect a say in how work works. They want to co-create their role or experience, not just be given a handbook. In that sense, they’re echoing Accenture’s observation: Gen Z employees aren’t just looking for a leader in the workplace, they’re looking for partnerships. 

The disconnect is growing, but it’s not just about work

Taking a wider view, this isn’t only a workplace issue. It does seem to be societal. 

According to recent reporting in The Guardian, over five million UK adults are now facing financial, housing and health insecurity all at once. That includes many in work. These overlapping pressures will affect how people show up, how they cope and how they engage. 

When external stress is high, the internal support systems of work become more important. And when they don’t hold up, employees switch off – emotionally and mentally. 

Where do we go from here?

The message across Gallup, Randstad, Accenture and GWI is consistent. Start with people. Rebuilding engagement isn’t about new initiatives or a complete rebuild of your internal structures. It’s about strengthening relationships and routines that shape the everyday moments for employees. 

That includes: 

Support for managers. Many haven’t been trained. Helping them lead conversations, give feedback and recognise what they need in the moment could be a simple way of creating quick impact and help them feel better supported. 

Clearer expectations. Employees need clarity – on what’s expected of them, how their work connects to purpose and what success looks like. That applies just as much to a desk-based employee as to someone on the frontline.  

Making wellbeing real. Employees are discerning. Wellbeing can’t just live in a policy or on an intranet page. It has to show up in how people are managed, supported and recognised day-to-day – not like a last resort. 

Personalised experience. EVP can’t be one-size-fits-all. Different generations, job types and life stages value different things. Communications and touchpoints need to flex accordingly. 

Space to lead, not just deliver. Managers can’t engage others if they’re constantly firefighting. That means protecting their time, wellbeing and ability to support and lead their teams – not just hit targets. 

What this means for internal communicators

For comms teams, this moment in time is about more than getting messaging right. It’s about helping businesses reconnect with employees – with clarity, consistency and care. 

That might mean: 

• Helping leaders speak more empathetically 

• Creating moments for listening and dialogue, not just updates 

• Making the EVP visible in daily experiences  

• Designing comms that build trust, not just awareness 

• Creating channels that build connection, not just cascade information 

Because when expectations are this high, the way we communicate has to evolve too. 

This could be the reset we need

The signals are everywhere. Engagement is dropping. Expectations are shifting. People are tired, but they’re also clear on what they want. And whilst the data may look bleak, it also points to a clear path forward.  If this IS the reset moment, I’m not sure we can afford to ignore it. 

If you’re rethinking how to connect with your people, you’re not alone. We help organisations translate insight into communication strategies that support culture, engagement and change. Ready to reset how you communicate? Let’s talk.