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

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, Gallup finds.

Allwork.Space News TeambyAllwork.Space News Team
August 6, 2025
in News
Reading Time: 3 mins read
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Gallup Reports Employee Engagement Flat At 32%, Driving $2 Trillion In Lost U.S. Output

Gallup research reveals widespread employee disengagement in U.S. workplaces, exposing major leadership and culture challenges that hurt productivity and retention.

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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.

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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:

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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.

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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.

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Source: Gallup
Tags: LeadershipNorth AmericaProductivityWorkforce
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Allwork.Space News Team

Allwork.Space News Team

The Allwork.Space News Team is a collective of experienced journalists, editors, and industry analysts dedicated to covering the ever-evolving world of work. We’re committed to delivering trusted, independent reporting on the topics that matter most to professionals navigating today’s changing workplace — including remote work, flexible offices, coworking, workplace wellness, sustainability, commercial real estate, technology, and more.

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