Global employee engagement falls to 20 percent, marking lowest level since 2020
Updated
Updated · HRKatha · Apr 24
Global employee engagement falls to 20 percent, marking lowest level since 2020
10 articles · Updated · HRKatha · Apr 24
Gallup’s 2026 report reveals global engagement has declined for two consecutive years, costing the world economy $10 trillion, with manager engagement dropping sharply, especially in South Asia and India.
Manager disengagement is now the primary driver, as organizations cut management layers, expand spans of control, and fail to support managers leading AI adoption, intensifying workplace strain.
Best-practice organizations maintain 79 percent manager engagement by prioritizing engagement as strategy, highlighting a widening gap. India’s IT sector faces heightened pressure, with sustained disengagement threatening productivity and economic growth globally.
Is manager burnout the biggest hidden threat to India's economic growth?
Is India’s manager crisis a preview of a coming global workplace collapse?
Is India’s corporate 'Great Flattening' creating a generation of burnt-out managers?
As Gen Z rises, is India's traditional hierarchical work culture obsolete?
Will AI save flat organizations or accelerate their leadership collapse?
India's Employee Engagement Plummets to 21% in 2025: Unpacking the Manager Crisis and AI Impact
Overview
In 2025, India faced a sharp decline in workplace engagement, with employee engagement dropping to 21% and manager engagement falling by 8 points. This was driven by AI-driven restructuring that increased managers' workloads without adequate support, causing burnout and communication gaps, especially with Gen Z employees. Low trust in leadership and outdated recognition systems worsened the crisis. As managers disengaged, employee motivation fell, leading to widespread quiet quitting and a significant productivity drain. Despite rapid AI adoption by leading firms, human disengagement threatens to stall its benefits. Combined with economic challenges and low job confidence, these factors pose a serious risk to India's growth and competitiveness.