ROffice-to-office policies, poorly trained managers, “mental distance” from colleagues and few opportunities for growth are all likely contributors to employee engagement scores that have fallen to their lowest point in 11 years, a new Gallup analysis. were found— all as the labor market remains strong, but layoffs have increased and jobs have declined in some sectors.
The research and consulting firm, which Pieces on an ongoing basis how engaged employees are in their work, found that in the first quarter of 2024, employee engagement fell three percentage points to 30% from the end of the previous year, representing 4.8 million fewer workers who were “engaged” at work; the lowest since 2013.
“We’re at a level of engagement now that we saw 11 years ago after a decade of growth,” says Jim Harter, Gallup’s chief workplace and well-being scientist. “That’s worrying.” (The latest surveys were conducted in February on a random sample of more than 18,700 US adults.)
Harter says some of the biggest declines have occurred among younger age groups, as well as among workers with work arrangements at both ends of the flexibility spectrum. Gen Z workers, or those born after 1997 (but who were at least 18 years old in this survey) had the sharpest decline in engagement, according to the analysis, falling six percentage points in the first quarter.
People who work exclusively remotely — as well as those who work full-time in an office but in jobs that can be done remotely — also both saw a sharp drop in engagement, down five and six percentage points, respectively. Employees with hybrid work arrangements did not see a sharp drop in sentiment.
The data, Harter says, “suggests that physical distance becomes mental distance, and on the flip side, people see others with remote jobs who have flexibility and they don’t. I think that causes some disconnect.” He adds that “there’s kind of a happy medium where I think organizations have to get it right.”
The numbers peaked in 2020 amid the pandemic, Harter says, when 36% of workers were highly engaged in their jobs, which Gallup defines as being engaged and excited about their work and workplace. Gallup measures employee sentiment on topics such as whether people feel they know what is expected of them, whether they have opportunities to grow, and whether they feel connected to an organization’s purpose.
In the latter question, workers who work fully on-site but in jobs that could be done remotely saw a significant drop, from 38% agreeing in 2021 to 32% early this year. These workers “took a big hit in engagement over time,” Harter notes. “Respect autonomy, but create a framework for great clarity and collaboration led by a coachable manager.”
So far, layoffs in some sectors or lower attrition rates don’t seem to be having an impact, Harter says. (In March, the U.S. added far more jobs than expected and the jobless rate fell slightly, but separate reports showed layoffs hit a 14-month high and the number of workers resignation Their jobs are down.) “In general, when we see the economy going down, it leads to lower levels of active engagement,” he says, referring to people who are not just disenthused about their jobs but actually resent them, “because people they have a hard time getting out of a bad job.”
This is still not significantly reflected in the “active release” numbers, which are flat from last year’s fourth quarter (17%). “That would tell me that the economy is not at a point where people still don’t have options.”