The new Gallup State of the Workplace 2026 report is out. And the results are shocking. 

Of the 263,810 employees surveyed, only 10% are engaged at work, and nearly half (45%) report feeling stressed every day. Significant numbers also experience daily anger and sadness. 

This is not an isolated problem; but one that spans countries and sectors. Last year, low engagement cost the world economy approximately $10 trillion in lost productivity, the report points out.   

In the age of AI, it says, productivity gains will depend in part on how effectively workers use these tools. Disengagement will erode those gains, and active disengagement could even lead to serious security risks. 

Companies need to act quickly. So what can employers do about this? Luckily there is a plethora of research that offers advice for companies on how to boost employee engagement quickly. 

Improve relationships between colleagues 

To encourage proactive behaviour, employers must invest in culture, not just leadership, discovers new research from Trinity Business School, Dublin City University Business School, Alliance Manchester Business School and ESSEC Business School. 

The researchers found that employees who genuinely like the people they work with were significantly more likely to take proactive action, going beyond their formal job description to benefit the team and organisation. 

One of the researchers, Professor Steven Kilroy from Trinity Business School, argued that relationships are effectively the nervous system of an organisation, shaping how people think, feel and act at work every day. When those relationships are positive, employees feel more confident in their own abilities and more willing to stretch beyond their defined roles.  

Organisations that take the time to invest in building strong connections and psychological safety, then, will boost performance, reduce errors and build a more resilient workforce. Employers can create an environment like this by ensuring timely, frequent, accurate and respectful communication is given at all times. Employees must be able to feel like they can speak up and question decisions without being punished or humiliated in the team. 

Balance three basic needs 

With only 10% of employees engaged at work, employers must address the all-important question; ‘What actually motivates people at work?’ Research led by Manchester Metropolitan University Business School identifies three core psychological needs that, when in balance, produce the greatest levels of motivation and wellbeing:  

• Autonomy: Having the independence to make decisions 
• Competence: Feelings of mastery or efficiency 
• Relatedness: Feelings of connection and belonging 

They discovered it’s the balance of all three that matters. An employee with high autonomy but low relatedness, or strong competence but no independence, will still struggle.  

Organisations that design roles and cultures with all three needs in mind will find their people far more motivated, engaged and likely to stay at the company for longer.  

These individuals are often far more motivated, engaged and likely to stay at the company for longer. Interestingly, support also plays a role here. 

“We find that employees experience the highest levels of balanced needs satisfaction on days where they receive both higher leader and colleague support,” says Dr Ioannis Kratsiotis, Lecturer in Organisational Psychology at Manchester Metropolitan University Business School. 

To create a work environment where these key needs are met, leaders should focus on supporting the least satisfied need to achieve balance, rather than over-emphasising already fulfilled needs. They can implement policies that promote balanced support, such as mentoring, training, and collaboration opportunities, and encourage teamwork and social interactions to enhance relatedness. 

Offer good work-life balance 

But it’s not just life at work that makes a difference to employee motivation. Employers often frame work-life balance as a perk. But new research suggests it has deeper value, particularly for leaders.  

A study from Durham University Business School shows that close family connections give leaders a vital sense of belonging and emotional support, acting as a “safety net” against the pressures of demanding roles.  

Leaders with strong family ties are better equipped to handle stressful situations at work without burning out, according to the researchers. This is because having close family connections gives leaders a sense of belonging and emotional support. The researchers say these ties help them deal with stressful work situations. 

The research, conducted by Durham University Professors Karolina Nieberle, Janey Zheng, Olga Epitropaki, and Keming Yang, alongside Professor Michelle Hammond from Oakland University, comprised two separate studies. 

The first surveyed over 170 UK managers at multiple times per day, resulting in data from more than 1,000 workdays, with a total of over 4,000 data points. The second study interviewed 185 UK managers about their past experiences of loneliness at work, and how they responded to it. 

On days when leaders felt lonelier than usual, they found managers were more likely to withdraw from tasks and reduce engagement with their employees. Even short-term periods of loneliness – such as feeling a little lonesome on the morning of a workday – reduced leadership engagement, including both task and relationship withdrawal from employees.  

Outside of work, this led leaders to distance themselves from family, creating a self-reinforcing cycle of loneliness, with the potential of further damaging relationships at home and in the office. 

 “Loneliness is often overlooked, says Dr. Zheng. “But it can quietly undermine both work and home life. Leaders who cultivate strong family connections are better able to stay engaged and resilient on those days when they feel lonesome.” 

Leaders with strong family ties were also found to be less likely to let work-related loneliness spill over into home life – suggesting that employers that invest in this work/life balance will find all-round happier employees in both personal and work life. 

These findings highlight a hidden barrier to effective leadership,” says Dr. Nieberle. By recognising and addressing loneliness in leadership roles organisations can protect the personal wellbeing of their staff, and also enhance team performance, engagement, and retention.

Stamp out toxic workplace culture 

Yet no number of wellbeing initiatives will improve employee satisfaction if toxic behaviour is allowed to continue. Research from Vlerick Business School highlights the specific harm caused when organisations tolerate microaggressions and silence those who speak up about them.  

The team examined over 700 experiences of microaggressions shared by more than 125 women on an online platform. They investigated how women reacted and whether companies provide tools to empower them to respond. 

In workplaces with entrenched toxic cultures, they found women are disproportionately likely to stay silent when faced with microaggressions, relying instead on individual coping strategies, as they didn’t feel safe enough to raise concerns.  

“For too long, the message has been that women need to speak up when they face microaggressions. Our research shows that the problem isn’t women staying silent-it’s the workplace cultures that make speaking up risky or impossible,” say the researchers. 

They said organisations must do far more to create genuine spaces for dialogue, rather than creating conditions where victims feel they have no choice but to stay quiet.  

To tackle microaggressions, the researchers recommend a two-fold approach. 

First, organisations should dismantle systemic silencing mechanisms through open dialogue, accountability, and bystander training. 

 Second, they should provide stage-specific support, equipping individuals with the language, strategies, and tools to recognise, respond to, and cope with subtle workplace bias. 

Is your company the problem?  

As the research shows, employees thrive when they feel connected, autonomous, safe and valued, and when the organisation they work for reflects the values they hold.  

The results of the survey are shocking, but it’s not too late to change them. The Gallup survey found in 2025 that within best-practice organizations, 79% of managers were engaged at work – nearly quadruple the global average.  

These world-class workplaces spanned all regions and industries, and prioritised employee engagement as part of their long-term business strategy. 

Companies like this that act on employee wellbeing will find they have a significant competitive advantage in both performance and talent retention.  

They’ll also find that a lot more than 10% of their employees are engaged at work, which will inevitably lead to a happier workplace for all. 

By, Chloë Lane

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