Gallup’s State of the Global Workplace 2025: Our Key Insights

Our employee engagement experts respond to the State of the Global Workplace 2025 report.

Decline. That’s the stark message from Gallup’s latest State of the Global Workplace report, released in April 2025. While last year’s analysis warned of stagnation, this year confirms a downward trend, with engagement, wellbeing, and manager morale all worsening.

“Global employee engagement continues to fall.”

Sadly, the cost of inaction is growing. Low engagement now accounts for nearly 9% of global GDP, with stress and disconnection rising across the board.

In this live response, our employee engagement experts break down the latest data, helping you understand how these trends affect your people — and what to do about it. We’ll show you how to recover from disengagement, reduce attrition and build a more resilient workforce through our approach of creating a people-first company culture.

Only 21% of Employees Are Engaged

Global engagement has dipped to 21%, with Europe reporting the lowest figures at just 13%. In the UK, the number is even more concerning — only 10% of workers are engaged in their jobs. Gallup points to three major culprits: lack of meaningful management, declining team connection and a weak sense of organisational purpose.

One finding remains consistent: management matters more than any other factor. According to Gallup, managers account for 70% of the variance in team engagement. Yet, only 44% of managers report having received any formal training. This deficit directly correlates with burnout, disengagement, and diminished performance.

Low Engagement Continues to Damage Productivity and Growth

When engagement strategies are done right, through recognition, communication and connection, the results go far beyond morale. A great company culture can reduce attrition, strengthen culture, and drive performance.

That’s where Mo comes in. Our platform helps embed positive behaviours into daily routines, building habits that reinforce connection and shared values.

A Culture of Belonging Is Slipping Away

Employee disconnection is on the rise. Gallup reports that 20% of employees felt lonely “a lot of the previous day.” Among remote workers, that number rises to 25%. As hybrid models become the norm, many teams are seeing their social and professional bonds erode.

To combat loneliness, organisations must prioritise cultures of recognition and belonging. When employees feel part of something bigger, they’re more committed, more collaborative, and more likely to stay.

The data backs this up. People who feel recognised and included are:

• 3× more likely to describe their workplace as fun.
• 5× more likely to plan to stay long-term.
• 6× more likely to look forward to work.

Company culture creates this sense of belonging. Mo enables it at scale.

Disengagement Has a Trillion-Dollar Price Tag

The economic cost of disengagement is staggering: Gallup now estimates that $8.9 trillion is lost globally each year due to low employee engagement. That’s equivalent to nearly 9% of global GDP.

In the UK alone, this issue is fuelling a £257 billion productivity gap. By investing in employee engagement, particularly through recognition and culture-building initiatives, organisations can dramatically reduce attrition and increase productivity. Gallup reports that engaged employees perform 20% better and are 87% less likely to leave.

Replacing top talent is expensive. The Telegraph reports that replacing an employee costs an average of £30,614. The number is even higher for senior roles, where lengthy handovers and lost expertise drag on business performance.

Mo helps organisations protect against these costs. Our engagement platform turns employee insights into sustained action, improving culture while saving on unnecessary recruitment and onboarding expenses.

Mental Health Is Now a Workplace Priority

This year’s Gallup report shines a spotlight on workplace wellbeing — and the picture isn’t encouraging.

• 41% of employees said they experienced significant stress the previous day.
• Only 34% report that they are thriving in their lives.
• 1 in 5 feel lonely, a number that rises among remote teams.

Wellbeing isn’t a “nice to have” — it’s directly tied to performance. High-stress, low-belonging environments lead to higher attrition, lower output, and a damaged employer brand.

Culture is your lever. When recognition is regular and meaningful, employees feel valued, empowered, and better equipped to manage work stress. Gallup’s research shows that companies with strong recognition practices see up to a 21% uplift in profitability.

Recognition isn’t about grand gestures. It’s about consistency. Mo makes it easy for teams to celebrate wins, support each other, and build stronger habits of connection — all of which contribute to better mental health and business resilience.

Further Reading

Mo for company culture ->

Last year’s Gallup report ->

HR trends to watch in 2025 ->

Mo’s success stories ->

Nothing Will Change Unless Our Approach Does

These statistics should feel like a wake-up call. But panic isn’t the answer. Strategy is.

At Mo, we help organisations move from insight to impact. Engagement surveys are valuable, but without a plan of action, the data doesn’t change anything. That’s why our platform is built to close the loop. Mo creates feedback tools that connect what your employees are telling you with systems that make meaningful change easy.

Culture is a simple yet powerful way to sustain engagement, strengthen teams, and build a workplace people actually want to be part of.

We’ve seen it in action.

OVO Energy, a leading UK energy provider, worked with Mo to embed recognition and wellbeing into the heart of their culture. Since launching, they’ve achieved a remarkable 10-point increase in employee engagement. 

The team at OVO Energy have sustained high engagement during a period of rapid growth and organisational change. Through Mo, teams feel more connected, more accountable, and more energised about their work.

You can create the same transformation.

If Gallup’s 2025 report tells us anything, it’s this: the cost of inaction is too high. But the path forward is clear. Speak to our experts and find out how Mo can help you build a more engaged, resilient, and connected workplace.

Transform your culture with Mo

Book a free demo to learn how Mo can help you:

• 🤝 Improve employee engagement scores
• 🚀 Reduce employee churn
• 😍 Build a collaborative culture

Book your free demo

Mo is Proven to Boost Employee Engagement

Mo is a culture and engagement platform that uses data insights to drive real improvement in engagement scores while reducing staff turnover. We strategically help people teams create great places to work through continuous, positive action.

If you’re looking for ways to take action on measuring employee engagement, learn more about how to shift the dial at the manager level and transform insights into action. To find out if you’re eligible for our money-back guarantee, book a demo with our team.