UK Workers Among Europe’s Most Disengaged: The Rising Cost of Low Engagement

Employee engagement in the UK has reached a concerning low, positioning British workers among the most disengaged across Europe. According to Gallup’s latest State of the Global Workplace report, global engagement dropped to just 21% in 2024—the first decline in four years and only the second in over a decade.

This drop in engagement comes with a steep economic cost: an estimated $438 billion (£329 billion) in lost productivity last year alone. UK employees in particular are facing what experts call an “appreciation crisis,” a trend especially affecting women and staff within large organisations.

A particularly troubling aspect of this report is the declining engagement of managers. Globally, manager engagement fell from 30% to 27%, with young and female managers reporting the highest levels of stress and burnout. Given that managers influence around 70% of team engagement, this trend risks worsening already fragile workplace morale and productivity.

Technology, especially AI and automation, has added a complex layer to the engagement equation. While these tools can improve efficiency, when poorly implemented, they contribute to increased monitoring, unrealistic performance expectations, and fears about job displacement—factors that can further disengage workers.

Nebel Crowhurst, Chief Appreciation Officer at Reward Gateway | Edenred, underscores the importance of appreciation in reversing these negative trends. “British workers are amongst the saddest and most disengaged in Europe,” Crowhurst noted, pointing to research highlighting that appreciation significantly boosts engagement and performance. Employees who feel valued are more likely to work harder, take on extra responsibilities, and feel emotionally invested in their jobs.

The normalisation of stress in the workplace is another red flag. A culture of ‘carrying on’ despite declining mental health is proving unsustainable. Crowhurst warns that stress undermines not only wellbeing but also productivity and motivation. As the UK doubles down on efforts to ‘Get Britain Working Again’, fostering stress-free environments must become a priority.

Only 33% of employees globally say they are thriving, a drop from 35% in 2022, with wellbeing declines mirroring engagement trends—especially among older and female managers. Yet there is hope. Organisations that use AI to rebalance workloads, streamline administration, and offer personalised wellbeing tools are seeing better engagement than their peers.

Perhaps most strikingly, the report estimates that fully engaging the global workforce could add $9.6 trillion (£7.2 trillion) to the world economy—a 9% boost in global GDP. The key lies in thoughtful technology use, meaningful recognition, and investment in manager wellbeing.

As workplaces continue to evolve, understanding the intersection between appreciation, technology, and mental wellbeing will be critical. For companies that get it right, the payoff isn’t just happier staff—it’s a strategic advantage in productivity and innovation.