Is the Global Workplace at Breaking Point? What Australian Leaders Need to Know
Every year, Gallup’s State of the Global Workplace report offers a pulse check on how the world is working and this year’s 2025 edition paints a sobering picture.
Across the globe, the data reveals that workplaces are struggling — not just with performance, but with people. Employee engagement is faltering, wellbeing is declining, and the very fabric of workplace culture feels frayed.
But what does this mean for Australia? And how can our leaders respond before we reach a crisis point?
Global Summary: A Workforce Under Pressure
The 2025 report is Gallup’s most comprehensive yet, surveying over 150,000 workers across more than 140 countries. The standout finding?
Only 23% of workers globally are engaged in their work
While this marks a slight improvement from last year, it’s still worryingly low. Stress remains stubbornly high, with 41% of workers globally saying they experienced stress during much of the previous day.
But the picture varies dramatically by region:
Here is an interesting global snapshot
United States & Canada
The region leads the world in engagement, with 33% of employees engaged.
However, its no surprise that stress is also higher than the global average, driven by economic uncertainty, political polarisation, and workplace instability.
Europe
Europe has the lowest employee engagement in the world at just 13%
This is attributed to rigid management structures, lower trust in leadership, and lack of recognition.
Countries such as France and Germany continue to grapple with disconnection despite strong labour protections.
Asia
Asia sits just below the global average in engagement, with 21% of workers engaged.
High expectations around work ethic and cultural norms often lead to underreporting of stress and dissatisfaction.
In countries like Japan and South Korea, wellbeing scores are among the lowest globally.
Australia & New Zealand
In our region, only 20% of employees are engaged — lower than the global average.
Just 33% of workers report they are thriving in their overall lives.
The gap between expectations of meaningful work and the reality of disengagement continues to widen.
Employee Engagement Is at the Brink
That means 4 out of 5 workers here are either indifferent or actively disengaged. Add to that the finding that just 33% of Australians say they are “thriving” in life, and it’s clear we’re not exempt from the wider problem.
This is more than a morale issue. Gallup’s data draws a direct line between employee engagement and productivity, profitability, retention, and wellbeing.
What’s Causing the Decline?
So what’s behind the drop in engagement and wellbeing?
Gallup’s report points to several key culprits:
Poor management - managers account for 70% of the variance in team engagement
Unclear expectations - many employees don’t know what’s expected of them day to day
Lack of recognition — praise and meaningful feedback remain rare
Disconnected purpose — people want to do work that matters, not just clock in
Workplace stress — global stress remains near record highs
It’s not one single issue. It’s a cumulative effect of broken systems, outdated leadership models, and cultures that haven’t evolved with the times.
Who Is Hurting the Most?
The report found that young workers, particularly those under 35, are experiencing some of the sharpest declines in wellbeing — and are also among the least engaged.
This matters. These are the future leaders, entrepreneurs, and key contributors to our economy. If we lose their energy and optimism now, we risk a long-term leadership and innovation gap.
Three Actions for Leaders Now
Gallup doesn’t just highlight problems — it offers a blueprint for change. Here are three tangible actions every Australian leader should take now:
1. Train Your Managers to Lead, Not Just Manage
Great managers aren’t born — they’re developed. Invest in coaching and skills-building that teaches them how to engage, support, and grow their people.
2. Create Cultures of Clarity and Recognition
When people know what’s expected of them and are recognised for doing it well, engagement rises. Be specific. Be consistent. And make it cultural, not optional.
3.Prioritise Wellbeing as a Business Strategy
Wellbeing isn’t just yoga classes and EAP brochures. It’s flexibility, psychological safety, workload balance, and making people feel seen and supported.
Where to From Here?
Australia has long taken pride in its lifestyle and work-life balance. But these numbers tell a different story — one of growing disconnection and cultural drift.
The good news? We can turn this around. But it requires leaders to move beyond perks and policies and into the hard (and human) work of culture transformation.
If we want to be future fit, we must build workplaces that value both performance and people — and that starts at the top.
And this is exactly the conversation we’re having on the Future Fit Leadership podcast — where today’s boldest leaders share how they’re shaping a more human, sustainable, and high-performing world of work.
To read the full report: State of the Global Workplace
Listen to our podcasts on : Future Fit Leadership Podcast