Manager Engagement Is Slipping—Here’s What to Do About It

The Manager Crisis Hiding in Plain Sight

In today’s rapidly evolving workplace, it’s not frontline employees but managers who are waving the red flag. According to Gallup’s State of the Global Workplace 2025 Report, global employee engagement fell from 23% to 21% last year—one of the sharpest drops in over a decade. But the most significant factor behind this decline? A collapse in manager engagement, down from 30% to 27%.

This drop may seem incremental, but it carries massive consequences. Manager disengagement directly affects team performance, morale, and retention. In fact, Gallup attributes 70% of team engagement variance to the manager.

The cost? A staggering $438 billion in lost global productivity in 2024 alone.

Why Are Managers Burning Out?

Post-pandemic, managers have been expected to reconcile conflicting demands from both executives and employees: adopt AI tools, oversee hybrid teams, execute budget cuts, and preserve culture—all without increased support.

Disengagement is most acute among:

• Young managers under 35 (down 5 percentage points)

• Female managers (down 7 percentage points)

Beyond work pressures, manager wellbeing has also plummeted. Gallup found a 5-point drop among older managers and a 7-point drop for female managers. For many, that means physical exhaustion, poor sleep, and mental burnout.

Why This Matters for Every Company

Let’s be clear: if your managers are disengaged, your teams are too. This isn’t just about morale—it’s about performance, profitability, and growth.

Companies that ignore this trend risk:

• Higher turnover

• Greater absenteeism

• Lower productivity

• Diminished trust between leaders and teams

What You Can Do: 3 Actions That Work

The good news? Companies can reverse the trend. Gallup and workplace experts outline three concrete, high-impact strategies:

1. Train Every Manager—Properly

Only 44% of global managers report receiving any training. Those who do are half as likely to be actively disengaged. Basic role training dramatically reduces burnout and increases clarity, confidence, and connection.

“Even rudimentary training helps managers feel less like they’re drowning.” — Gallup

2. Invest in Coaching, Not Just Management

Effective coaching increases manager performance by 20–28% and boosts team engagement by up to 18%. It’s not enough to manage tasks—managers must be equipped to lead people through change.

3. Build a Culture of Growth and Wellbeing

Managers who receive ongoing development and feel supported by leadership report 50% higher wellbeing. Development isn’t a perk—it’s a retention and performance strategy.

Let’s Rethink the Manager Role Together

At Claria Partners, we specialize in helping HR leaders and executive teams align leadership development with business strategy. In 2025 and beyond, success will depend on how well we equip, empower, and elevate our managers. Learn more about our Leadership & Manager Development programs and let’s connect.