The Cost of Declining Manager Engagement and How to Reverse It
Last year, a troubling trend emerged that cost the global economy $438 billion in lost productivity: a significant decline in employee engagement. According to Gallup's State of the Global Workplace 2025 report, this alarming drop primarily stems from a steep reduction in manager engagement. The ripple effects of disengaged managers are profound, influencing team engagement, overall productivity, and ultimately business performance and GDP growth.
Story
I like to share true stories of situations I have experienced as a consultant/coach. Unfortunately, this is not a story with a happy ending.
Several years ago I was coaching a group of managers and leaders in an organization. There was a direct correlation between their desire to be coached and their success. Part of this stems from developing a growth mindset, something critical for sustainable success.
Everything was going well with this group until one of the managers started to shut me out. It was obvious he was dealing with a lot at work and at home. Noticing signs of burnout, I suggested he seek a mental health professional to work through some of the issues he was dealing with. His response was, “Thanks but no thanks”.
You can only help people who have a desire to be helped. The difficult part is to watch someone slowly decline in their performance, productivity, attitude, optimism, and motivation. What happens at work impacts home and vice versa.
My coaching engagement ended with that organization. A few months later I received a call from the owner for an “emergency” meeting. When we met, I found out that this manager was stealing from the organization, became addicted to drugs, and had left his family. Just about the worst possible outcome in a situation like this.
Why do I share this story? Because disengagement is the first step on the road to burnout, and burnout is a very serious condition. Sometimes people leave when they feel burned out. Other times they stay, and bad things start to happen.
While you might think this is an extreme case, it is more common than you think.Back to the survey results, with manager engagement at a meager 27% (basically 1 in 4), the workplace stands on the edge of a chasm. It would not take much to plunge over the edge. We MUST act now to turn this around!
$438 BILLION
in lost productivity??????????
What's Driving the Decline?
What's Driving the Decline?
Managers today find themselves at a critical crossroads, caught between heightened executive demands and shifting employee expectations post-pandemic. Less than half of the world’s managers (44%) report receiving any form of management training, leaving many overwhelmed and ill-equipped for their roles. Gallup’s findings reveal a stark reality: a lack of fundamental training drastically increases the risk of managers becoming actively disengaged—those who actively undermine organizational objectives.
The Cost of Ignoring Manager Engagement
Disengaged managers do more than diminish their own effectiveness; they create a toxic ripple effect. Teams led by disengaged managers suffer from lowered morale, reduced productivity, increased turnover, and diminished organizational trust. These factors compound directly impacting organizational profitability and economic stability.
What Could Higher Manager Engagement Achieve?
The benefits of improved manager engagement are tangible and substantial. Managers who receive targeted development not only become more engaged themselves but also boost team engagement and performance. Gallup research highlights:
- Basic role training can cut extreme manager disengagement in half.
- Effective coaching training can enhance manager performance metrics by 20-28%.
- Continuous manager development can increase overall manager well-being by up to 50% when coupled with active encouragement from leadership.
Specific Action Steps Leaders Can Take
To turn the tide of declining manager engagement, organizations must implement strategic initiatives focusing on training, emotional intelligence, and developmental clarity. Here are practical, evidence-based steps leaders can take:1. Provide Fundamental Role Training
Every manager should undergo basic training that clearly defines role expectations and equips them with essential management skills. This foundational training alone can significantly reduce extreme disengagement levels.
2. Implement Coaching Training Programs
Effective coaching techniques are proven to dramatically boost manager and team performance. Coaching, particularly when aligned with best practices, can increase manager engagement by up to 22% and team engagement by up to 18%. As an expert in leadership and emotional intelligence, I've seen firsthand how tailored coaching interventions significantly enhance leadership efficacy and emotional resilience, increasing engagement.3. Emphasize Emotional Intelligence Development
Managers skilled in emotional intelligence (EI) foster healthier, more productive teams. EI training can significantly improve self-awareness, self-regulation, empathy, intrinsic motivation, and social skills—all critical for navigating today's complex workplace dynamics. Using specialized EI assessments, such as the SEI Leading Through Change, Leadership Vital Signs, and Team Vital Signs, leaders can identify gaps and develop customized strategies to enhance manager effectiveness.
4. Facilitate Ongoing Development and Support
Continuous developmental opportunities, paired with active encouragement and support from senior leadership, drastically improve manager well-being. Regular check-ins, personalized development plans, and accessible learning resources can sustain engagement and productivity over the long term.5. Use Assessments for Clarity and Direction
Leveraging psychometric and emotional intelligence assessments, such as those offered by Six Seconds, TTI Success Insights, and the Habit Story assessment, provides actionable insights into managers' strengths, developmental areas, and emotional drivers. These tools offer clarity and enable targeted interventions that drive sustainable behavior change and enhance leadership effectiveness.
Redefining Managerial Roles for Lasting Success
Ultimately, it's imperative to rethink the role of the manager from mere task overseer to strategic organizational developer. Investing in manager engagement through intentional, structured development strategies is no longer optional—it's a critical business imperative. By focusing on emotional intelligence, coaching, continuous training, and robust assessments, leaders can ensure managers are empowered, engaged, and equipped to lead teams effectively, thus unlocking massive economic and organizational potential.
The choice facing executives today is clear: invest proactively in manager development or risk the severe, long-term consequences of inaction.
