Global engagement has dropped to just 21% in 2024 according to Gallup’s latest State of the Global Workplace report. This concerning trend represents only the second decline in engagement in 12 years, with disengagement costing the world economy an estimated $438 billion (£329 billion) in lost productivity last year alone.

The report reveals that UK workers are among the saddest and most disengaged in Europe, facing what experts are calling an "appreciation crisis" that particularly affects women and employees in large organisations.

Managers Under Pressure

Perhaps most concerning is the sharp decline in manager engagement, which fell from 30% to 27% globally. Young managers and female managers experienced the steepest drops, with many reporting symptoms of burnout and chronic stress.

Since managers directly influence approximately 70% of team engagement, this downward trend threatens to further erode workplace productivity and wellbeing.

Technology’s Double-Edged Sword

While the Gallup report doesn’t explicitly address technology’s role in engagement trends, the rapid adoption of AI tools and automation presents both opportunities and challenges for workplace wellbeing.

Research suggests that poorly implemented AI solutions can exacerbate stress and disengagement by increasing monitoring, creating unrealistic productivity expectations, and generating fears about job security.

Nebel Crowhurst, Chief Appreciation Officer at Reward Gateway | Edenred, emphasises that appreciation could be the key to reversing this downward trend.

"It comes as no surprise that British workers are amongst the saddest and most disengaged in Europe. Recent research from Reward Gateway found that employers in the UK are suffering from an appreciation crisis, with women and those in large organisations specifically suffering the most," Crowhurst commented.

"The results of employees feeling more appreciated are there for all to see. The report found appreciation to be a key driver of workplace success, with 88% reportedly working harder, 73% taking on extra work, and 91% feeling more engaged, all as a direct result of feeling more appreciated."

Crowhurst notes that appreciation isn’t just about employee happiness—it’s a "smart investment that leads to increased productivity, thereby enhancing overall business results."

Stress Normalisation

The report also highlights how stress has become normalized in many workplaces, with a general expectation that employees must "carry on" despite declining mental health.

"Stress creates a dampener on workplace culture, and more importantly, tears down employees and their mood, productivity and motivation to try harder and do better," Crowhurst explains. "Especially within the UK amidst the push to ’Get Britain Working Again’, it’s crucial organisations take initiatives to make stress-free workplaces, so employees actually look forward to cracking on with their work."

Only 33% of employees globally report they are thriving in their lives overall, down from 35% in 2022. This decline in wellbeing mirrors the engagement drop, with older managers and female managers experiencing the largest decreases.

Some organisations are bucking this trend by leveraging technology to support wellbeing rather than erode it. For example, companies using AI to identify workload imbalances, automate administrative tasks, and provide personalised wellbeing recommendations report higher engagement levels than industry averages.

The Productivity Opportunity

Despite these challenges, the report highlights a massive opportunity: fully engaging the global workforce could add $9.6 trillion (£7.2 trillion) to the economy, representing a 9% increase in global GDP.

The path forward likely requires a balanced approach to technology implementation—one that uses AI and automation to reduce stress and create meaningful work rather than simply accelerate production demands.

Organisations that invest in manager wellbeing, meaningful recognition, and thoughtful technology integration are positioned to not only reverse the engagement decline but also capture a significant competitive advantage through enhanced productivity and innovation.

As the workplace continues to evolve, understanding the complex interplay between technology, appreciation, and wellbeing will be crucial for businesses seeking to create environments where employees can truly thrive.