How global events are shaping employee engagement – and how to navigate the shift

The big picture: engagement trends from 2024 to 2025

In 2024, employee engagement took a noticeable dip. Gallup reported a drop in global engagement from 23% in 2023 to 21% in 2024 – only the second decline in the past 12 years.  For managers, the fall was even more significant: from 30% to 27%, reflecting widespread strain on those in leadership roles.

As we step into 2025, there are some green shoots of recovery. In the UK, anecdotal feedback and internal benchmark data suggest engagement levels are beginning to stabilise and in some sectors, improve. Gallup’s most recent global data shows engagement rebounding slightly to 32% in Q2 2025. Culture Amp also notes that overall engagement scores are returning to pre-pandemic levels – hovering at around 71% globally.  Our own benchmark data also points to an improvement, although still shy of pre-pandemic levels.

Still, the broader picture remains mixed: while some employees are reconnecting with their work, burnout, anxiety and disconnection remain recurring themes. A HubEngage study warns that only 23% of employees feel “actively engaged” worldwide, and signs of emotional detachment are still widespread.

The wider context: why global events matter

Employee engagement doesn’t exist in a bubble; it’s shaped by the world around us. The last 18 months have been marked by war, political instability, economic uncertainty, inflation, and the rapid integration of AI technologies into the workplace. These forces, often beyond any one organisation’s control, are feeding directly into how employees feel, how they work, and how connected they are to their purpose.

Several themes stand out:

• Manager burnout has been a critical pressure point. As managers navigate hybrid working, performance uncertainty and squeezed budgets, their own engagement has suffered. And when managers struggle, their teams are more likely to disengage. Gallup estimates that 70% of the variance in team engagement can be linked to the quality and wellbeing of the line manager. For those that know me well, you’ll recognise this – something I have talked to on many an occasion!
• The psychological impact of uncertainty continues to undermine trust and belonging. Whether it’s war in Europe or the Middle East, or cost-of-living concerns closer to home, people bring these anxieties with them to work. In uncertain times, engagement and motivation typically decline.
• Tech disruption and AI adoption are a double-edged sword. While AI promises to boost productivity, it also introduces fear and resistance, especially where job security or fairness of performance monitoring is questioned.

How organisations can protect engagement during global uncertainty

Support your managers, relentlessly

Managers set the tone for team morale. Data suggests that only 44% of managers receive any formal development or support. Equip them with coaching, listening skills, and space to reflect. Healthy, engaged managers are the biggest lever for sustained team engagement.

Make feedback continuous and act on it

Pulse surveys and frequent listening mechanisms help you stay connected to what’s changing on the ground. Closing the feedback loop, visibly and quickly, builds trust and encourages honesty.  A phrase I use relentlessly is “The survey is the easy bit, it’s what you do with the findings that matter!”.

Prioritise transparency and communication

When employees feel left in the dark, disengagement follows. Clear, consistent communication, especially from senior leaders, helps employees navigate uncertainty. Be honest about what’s known, what’s not, and what comes next.

Embed wellbeing into everyday working life

Wellbeing isn’t just yoga and webinars. It’s about workload, boundaries, psychological safety and feeling valued. In Deloitte’s UK Human Capital Trends, organisations that embedded wellbeing into leadership behaviours saw a 30% rise in retention and engagement.

Use technology with care and with people

Digital tools can help employees feel connected and capable, especially in hybrid environments. But when tech is introduced without dialogue or training, it can feel alienating. Involve staff early, and frame tech as something that enhances their role; not replaces it.

Reconnect people to purpose

Even in a world full of distractions, people want to do meaningful work. Employees who understand how their role contributes to the wider mission are significantly more engaged. Remind people of their impact, celebrate progress, and amplify stories of purpose.

Final thought: turbulence is inevitable – disengagement isn’t

If 2024 reminded us how vulnerable engagement can be to global shockwaves, 2025 is reminding us that recovery is possible but it’s not automatic.

By focusing on human connection, listening, leadership and purpose, organisations can build cultures that don’t just withstand the storm they come through stronger. Here’s the thing:  engagement isn’t about perks or pay rises alone; it’s about belonging, trust, clarity and care and in uncertain times, those things matter more than ever.

What’s one thing you’ll do differently this year to reconnect and engage your people?