British workers are among the least engaged and most dissatisfied in Europe, according to new research examining global employee sentiment — and experts say organisations must urgently rethink their approach to leadership, appreciation and wellbeing to reverse the trend.
A State of the Global Workplace: 2025 Report by pollster Gallup reveals widespread employee disengagement, mounting manager stress and a concerning drop in overall life satisfaction among the workforce. The figures paint a picture of a workforce under pressure, with clear implications for productivity, retention and employee wellbeing.
The research shows that just 21% of employees globally are engaged at work, with engagement levels in Europe sitting even lower at 13%. Within the UK, the situation mirrors the downward trend, and the consequences could be far-reaching.
One of the key drivers is a sharp decline in manager engagement, which fell by three percentage points last year alone. Younger managers and women managers have been hit hardest, with engagement among female managers dropping by seven points.
‘No Surprise’
Nebel Crowhurst, chief appreciation officer at employee platform Reward Gateway | Edenred, said employers shouldn’t be surprised by the report’s findings.
“It comes as no surprise that British workers are amongst the saddest and most disengaged in Europe. Recent research from Reward Gateway found that employers in the UK are suffering from an appreciation crisis, with women and those in large organisations specifically suffering the most,” he said.
Crowhurst added that there was “a general expectation that employees must ‘carry on’ with their work despite experiencing declining mental health and symptoms of burn-out like detachment, irritability and exhaustion”. He said that younger employees were generally more mindful of mental wellbeing but that employers should make it a priority for everyone.
“Stress creates a dampener on workplace culture, and more importantly, tears down employees and their mood, productivity and motivation to try harder and do better,” said Crowhurst.
“Especially within the UK amidst the push to ‘Get Britain Working Again’, it’s crucial organisations take initiatives to make stress-free workplaces, so employees actually look forward to cracking on with their work.”
Manager Burnout at ‘Heart of the Problem’
A recurring theme in the data is the pivotal role of managers in determining workplace culture and employee experience. The study found that 70% of a team’s engagement is directly attributable to the manager. But many are stretched thin in a post-pandemic world of staff shortages, tighter budgets and rising operational demands.
Comments from employees globally capture this struggle. One South African field operations manager noted: “We should have a team of six people. There’s only two of us. I think that is very stressful.” And a US-based supervisor admitted: “My guys will do anything I ask of them, but there’s no enthusiasm. You can just feel it.”
Another, a supervisor in the US, said: “I mean, my guys will do anything I ask of them, and
I love my guys, but there’s no enthusiasm. I’m not asking anybody to be jumping around because we got work to do, but you can just feel it.”
And a maintenance technician in South Korea said: Since [our leaders] don’t stay long and move to other departments before we can fully get to know them, it’s hard to develop trust.”
Workplace experts say when managers are overwhelmed and unsupported, their ability to lead, motivate and care for their teams suffers. According to the study, manager wellbeing dropped five percentage points in the past year, and seven points for female managers. This has direct consequences not just for staff engagement, but also for business outcomes like productivity and turnover.
Appreciation as a Proven Route to Improvement
One clear, evidence-backed solution highlighted in the report is the importance of employee appreciation. Crowhurst pointed to recent Reward Gateway research showing how recognition boosts engagement, productivity and loyalty.
“The results of employees feeling more appreciated are there for all to see. The report found appreciation to be a key driver of workplace success, with 88% reportedly working harder, 73% taking on extra work and 91% feeling more engaged, all as a direct result of feeling more appreciated.”
Despite its proven impact, many organisations fail to embed appreciation into their culture, especially as pressures mount. Experts argue it’s one of the easiest and most cost-effective ways to lift morale and motivation in challenging times.
Practical Steps for Employers to Take Now
To respond to the challenges, experts recommend a multi-pronged strategy. Practical, evidence-based actions include:
- Investing in manager training and development. According to the Gallup report, managers who receive training are half as likely to be actively disengaged, and their team performance improves by up to 28%.
- Teaching coaching skills. Managers who learn how to coach, not just supervise, create more motivated and resilient teams.
- Embedding appreciation into workplace culture. Formal recognition programmes, regular peer-to-peer praise and leadership role modelling all make a difference.
- Prioritising employee wellbeing beyond perks. Mental health resources, flexible working options and clear boundaries around workload and expectations matter more than ever.
- Reframing the manager’s role. The report calls on organisations to rethink how managers are supported, empowered and held accountable for team wellbeing.