Gallup Reports Employee Engagement Flat At 32%, Driving $2 Trillion In Lost U.S. Output

U.S. workers continue to feel emotionally disconnected from their workplaces in 2025, with only 32% reporting they’re engaged at work, which is far below the pre-pandemic peak. According to Gallup, this chronic disengagement now costs the U.S. economy an estimated $2 trillion annually in lost productivity.

A Steady Decline Since the Pandemic Peak

After rising steadily for a decade post-2008, engagement levels peaked at 36% in early 2020. The pandemic and Great Resignation reversed that progress, dropping engagement to an 11-year low of 30% in 2024. While Q2 2025 saw a modest one-point increase, the overall trend remains stubbornly flat.

Advertisements

Workplace Experience Falls Short of Employee Needs

Fewer than one in five employees are fully satisfied with their employer, and over half are actively looking — or staying open to — other job opportunities. The top engagement indicators reveal major gaps:

• Only 31% feel their development is encouraged
  
• Just 28% believe their opinions count
  
• A mere 32% feel connected to their company’s mission
  

What Employees Say Is Missing From Work

When asked what would make them feel more connected, employee responses revealed four dominant themes:

Advertisements

1. Disconnected Culture and Isolation

Nearly one-third of employees say their workplace feels impersonal. Gen Z and remote workers are even more likely to report a lack of cohesion, calling for more team building, interaction, and a sense of belonging.

2. Leadership Without Visibility or Voice

Poor communication topped frustrations, with 29% saying leadership lacks transparency. Employees want honest, two-way dialogue and involvement, not distant directives.

3. Underinvestment in People and Tools

A quarter of employees say they lack fair compensation, adequate staffing, or the tools needed to succeed. Persistent short-staffing and resource gaps erode trust and morale.

4. Performance Management Gaps

Only 14% report receiving meaningful feedback or development opportunities. Many still experience outdated, infrequent reviews that leave them guessing about expectations and growth.

Advertisements

Leaders Face a New Set of Pressures

Gallup’s survey of 500 senior leaders reveals what’s top of mind for executives: financial strain, market unpredictability, regulatory hurdles, hiring challenges, and tech disruption. Yet many still rely on legacy management systems that fail to address today’s complexity.

How Organizations Can Rebuild Engagement

• Culture: Design deliberate touchpoints for connection, especially in hybrid settings.
  
• Transparency: Provide clarity, share vision, and actively listen to teams.
  
• Resources: Equip employees with the tools, pay, and support to succeed.
  
• Performance: Replace outdated reviews with ongoing, personalized feedback and coaching.
  

The Most Valuable Thing Employees Want: Hope

More than anything, employees want hope — a clear sense of direction and a belief they matter. That comes from leadership that communicates vision, builds trust, and follows through. Organizations that succeed will be those that treat engagement as a daily discipline, not an annual metric.

Advertisements