Working life in 2024 is defined by stress, poor management and loneliness

The 2024 State of the Global Workplace report by Gallup sets out to provide a comprehensive analysis of employee experiences worldwide, revealing a large number of people who feel they are under increasing strain. Despite living in an era of remarkable technological and economic advancements, workers face significant challenges, with stress, disengagement, and declining mental health prominent in people’s daily working life. The report suggests that 41 percent of employees experience high levels of daily stress, with poor management practices being a major contributing factor. One in five workers report daily loneliness, an issue particularly pronounced among remote employees.

Younger employees are also struggling in their working life, with their overall wellbeing showing a marked decline. On a broader scale, disengagement in the workplace costs the global economy an estimated $8.9 trillion annually, equivalent to 9 percent of global GDP. However, the report also points to solutions, emphasising the transformative potential of effective management, strong labour protections, and a focus on employee engagement. Managers, who are key to workplace dynamics, wield significant influence over team morale and productivity but often face elevated stress themselves. The findings underline the critical role of organisational strategies in fostering engagement and wellbeing, offering a roadmap for leaders to create thriving workplaces that benefit both employees and the global economy.

Mental health

The findings highlight a troubling trend: 41 percent of employees worldwide report experiencing “a lot of stress” on any given day. Stress levels are exacerbated by poor management, with employees in such environments nearly 60 percent more likely to report high stress compared to those in well-managed settings. Alarmingly, poor management is even more stressful than unemployment for some workers.

One in five workers globally experience daily loneliness, a phenomenon most acute among remote employees (25 percent) compared to their on-site counterparts (16 percent). Loneliness carries severe implications for physical and mental health, with long-term effects including increased mortality risks.

The report also identifies a decline in wellbeing among younger employees, with global measures of “thriving” falling from 35 percent to 34 percent in 2023. This decline is particularly pronounced among workers under 35, a reversal of previous trends where younger employees reported higher life satisfaction than older generations.

Employee engagement

Employee engagement, a key determinant of workplace satisfaction and productivity, presents another challenge. While engagement correlates strongly with positive working life evaluations and reduced negative emotions, global engagement levels remain low. Only 23 percent of employees globally are considered engaged, compared to 15 percent who are actively disengaged. Active disengagement, characterised by opposition to organisational goals, significantly impacts both individual wellbeing and workplace culture.

Interestingly, countries with robust labour markets exhibit lower levels of active disengagement. In regions where job opportunities are abundant, employees are better able to leave unsatisfying positions, leading to less frustration and hostility at work. However, the correlation between thriving labour markets and higher engagement is less pronounced, highlighting the complexity of fostering meaningful employee connections.

Working culture

Managers are at the heart of workplace dynamics, accounting for 70 percent of the variance in team engagement. Yet, managers themselves face unique challenges, often experiencing higher levels of stress, anger, sadness, and loneliness compared to non-managers. Despite these challenges, engaged managers have a profound impact, with countries in the top half of manager engagement rates boasting twice the level of non-manager engagement.

Best-practice organisations illustrate the potential for transformation. These organisations achieve engagement rates of 75 percent among managers and 70 percent among employees, significantly surpassing the global averages. Such environments foster thriving teams with improved productivity, retention, and customer service outcomes.

The economy, stupid

Labour laws and economic conditions play pivotal roles in shaping working life. Countries with strong labour protections, such as maternity benefits, fair wages, and safety standards, report lower stress and higher overall life satisfaction among workers. Notably, employees in such environments who are also engaged experience the lowest levels of loneliness and stress.

However, strong labour protections alone are insufficient. Engagement remains a critical determinant of optimism and enjoyment at work. This underscores the importance of creating workplaces that not only meet legal and economic standards but also cultivate a sense of purpose and connection.

The report concludes with actionable insights for leaders and organisations striving to enhance workforce wellbeing and productivity:

1. Transform Management Practices: Organisations must prioritise hiring and developing managers with the ability to engage their teams. Effective management practices, including personalised feedback and meaningful goal-setting, are critical to fostering employee engagement.
2. Integrate Engagement into Organisational Culture: From hiring to performance management, engagement should be a cornerstone of organisational strategy. This integration ensures a consistent focus on building supportive and inspiring workplaces.
3. Prioritise Wellbeing Beyond Work: Addressing physical, financial, and emotional health needs through tailored benefits and initiatives is essential. Organisations that visibly support employee wellbeing create environments where individuals and teams can thrive.
4. Embrace Organisational Change: Achieving high engagement levels often requires intentional, long-term efforts to reshape workplace culture. Leaders must champion this transformation, recognising its impact on both employee satisfaction and organisational success.