Research by leading global analytics and advisory firm, Gallup, suggest that there may be.
Gallup’s 2026 State of the Global Workplace* report indicates that global employee engagement has dropped for the second year in a row to 20% from a high of 23% in 2022. Gallup reports that this decline in engagement is contributed to primarily by the decline in manager engagement. Gallup defines engagement as a measure of the psychological attachment workers have to their work, their team and their employer (*Pg. 6).
Manager engagement has dropped from 31% in 2022 to 22% in 2025, which is close to the 2025 employee engagement of 19%. Traditionally there has been a much bigger gap between manager and employee engagement. So, what we are seeing is the engagement gap between managers and employees narrowing.
What is concerning about the decline in manager engagement of course, is the impact managers have on their team members and the potential negative flow on effects on team engagement and in turn lower productivity and team effectiveness.
Gallup estimates that in 2025, low engagement cost the world economy approximately $10 trillion in lost productivity.
The Gallup report (*Pg.15) raises a discrepancy between leaders saying they had higher levels of wellbeing and engagement versus what they reported as their actual experience. What they reported in terms of their actual experience compared to team members (individual contributors) was more stress, anger, sadness and loneliness in the previous day. Gallup notes that there may be a negative impact on managers' emotions due to the social distance they may feel they need to keep or the responsibility of making difficult choices that have an impact on people. So it seems that many leaders and managers whilst the role provides greater agency and status, it comes with its challenges.
How is Australia and New Zealand (ANZ) faring against the global statistics for 2025?
- Engagement is very close to the global statistic, ie. 21% ANZ vs 20% Global.
- Many more people in ANZ say they are thriving, i.e. 55% (living their best possible life) vs those globally, i.e. 34%. This is positive, however, this statistic has been declining consistently year on year from a high of 69% in 2011.
- People in ANZ are more stressed, i.e. 49% than those globally, i.e. 40%. What is concerning to see is this statistic in ANZ has been increasing steadily from 33% in 2011 to its current high of 49%.
- Daily feelings of anger in ANZ have remained pretty consistent across the years from 2011 (13%) to 2025 (14%). This statistic is also lower than the global figure of 22%.
- Daily feelings of sadness in ANZ are similar to those globally, i.e. 21% vs 23%. It is interesting to note that this figure was quite steady from 2011 to 2020 and thereafter it started climbing from 15% to its current level of 21%.
- People in ANZ report being less lonely than those globally, i.e. 14% vs 22%.
- Job market optimism in ANZ declined sharply by 12% from 72% in 2024 to 60% in 2025. This is significant as ANZ has had the best employee perception of the job market globally post Covid pandemic up until now where ANZ ranks behind Southeast Asia.
When looking at the global and ANZ statistics there are certainly positives in ANZ with more people feeling they are thriving, being less angry and sad. However, stress levels are elevated and increasing as are people's concerns about the job market which may impact on their feelings of security. These statistics and the global statistics regarding overall manager engagement point to the importance of strongly supporting managers in their roles, ensuring they have the appropriate development to be engaged and in turn support their teams.
ANZ organisations would be well advised to regularly monitor engagement of their managers and employees using tools provided by organisations such as Gallup, Culture Amp or similar. This will become increasingly important with the impact of AI on the modern workplace and the demands this will put on leaders to navigate through changes.
It is essential not only to monitor engagement but also to take on board feedback and take necessary actions to address concerns and celebrate strengths in a collaborative fashion. This makes sense not only from a business productivity and profitability perspective but also from a humanistic focus on the wellbeing of people supporting them to thrive and, as Gallup puts it, ”to live their best life”.
*Source: Gallup (2026). State of the global workplace: 2026 report. Gallup, Inc. https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx