The UK’s Engagement Crisis: A Workforce in Peril

The 2025 Gallup State of the Global Workplace report delivers a sobering verdict: the UK workforce is among the least engaged and most emotionally burdened in Europe. With just 10% of employees engaged at work (a 50% drop since 2009) and 74% reporting significant burnout, the data paints a bleak picture of a workforce struggling under systemic stress, disconnection, and managerial strain.

But beyond the numbers lies a deeper and more personal story of stress, sadness, amongst our people, and a pressing need for a new approach to leadership. One solution lies in coaching - a practice that can transform not only individual performance but the culture of entire organisations.

This crisis isn’t just a HR concern - it’s a strategic threat. Gallup estimates that low engagement costs the UK economy 11% of GDP annually (£257 billion), while burnout and mental health struggles reduce both productivity and employee retention. Yet within this challenge lies an opportunity. By reimagining leadership development and workplace culture, I believe we can reverse these trends. Here’s how.

The Reality: Disengagement and Emotional Strain

Gallup’s findings are stark:

• Only 10% of UK employees feel engaged at work, compared to a European average of 13% and a global average of 21%.

• 26% of UK employees report feeling sadness “a lot of the day”, the second-highest in Europe and a sharp rise from 19% in 2021.

• 41% of UK workers experience workplace stress, and 17% report frequent feelings of loneliness and anger.

• 31% of employees are actively seeking new jobs, a sign of widespread dissatisfaction and restlessness.

• 42% of UK employees say they don’t feel physically or mentally well at work, and 24% took time off for mental health reasons in the past year.

It’s important to remember that these figures are not just statistics; they are people. Millions of people feel disconnected, unsupported, and are at risk of burnout within our society. The emotional toll can be seen through rising absenteeism, reduced productivity, and a pervasive sense of discontent that is damaging the fabric of our businesses.

The Roots of the Crisis

Several factors are driving this engagement crisis:

1. Poor Management and Lack of Appreciation

   Gallup’s research is clear: managers are the single most important factor in employee engagement. Yet, UK managers are struggling, with their own engagement levels reducing from 30% to 27%, and the decline is even more marked among younger and female managers. Poor management leads to unclear expectations, lack of support, and a culture where employees feel undervalued. This is compounded by what some call an “appreciation crisis,” especially among women and those in large organisations, where expectations are high, yet the levels of reward and recognition remain low.

2. Communication Breakdown

   Employees who feel uninformed or ignored are more likely to disengage. Poor communication and direct engagement of managers with their employees result in a sense of disconnection and a lack of personal value and valid contribution. When this culture of poor communication remains, it can lead to high turnover, reduced productivity, and the phenomenon known as ‘quietly quitting’.

3. Workforce Pressures and Skill Gaps

   The UK is struggling to deal with staff shortages, increased workloads, and a growing skills gap. 40% of employees say their teams are understaffed, and 37% expect this to worsen, particularly as financial balance is becoming increasingly challenging for businesses. The top HR challenge for 2025 is now reskilling and upskilling, overtaking even well-being. This pressure cooker environment amplifies stress and burnout, creating a seemingly endless workforce pressure spiral.

4. Economic and Market Uncertainty

   With a static labour market, reducing vacancies, and rising unemployment, many employees are feeling trapped in their roles, further increasing frustration, disengagement, and a lack of control. The lack of internal mobility and career development, and indeed to move towards restructures and staff reductions, only exacerbates these feelings.

The economic impact is profound. Gallup estimates that low engagement costs the UK economy over £257 billion each year. This is not just an abstract loss. It is demonstrated by lower output, higher absenteeism, increased turnover, and stagnation over innovation. For organisations, the stakes could not be higher.

Coaching: A Strategic Solution

Amid this bleak landscape, coaching stands out as a powerful lever for change. Here’s how coaching can help UK companies address the crisis:

1. Empowering Managers as Coaches

   Managers are responsible for 70% of the variance in team engagement. Yet, most spend only 7% of their time managing people, and few receive formal training in leadership or coaching. By equipping managers with coaching skills such as active listening, feedback provision, goal-setting capabilities, and support, organisations can transform the employee experience. Coaching helps managers move from a command-and-control to a partnership model, where employees feel heard, valued, and empowered.

2. Addressing Stress and Burnout

   Coaching provides a safe space for employees to discuss challenges, clarify goals, and develop resilience. It helps individuals manage stress, build coping strategies, and maintain well-being. For teams, coaching fosters trust, collaboration, and psychological safety, all of which are key ingredients for thriving in high-pressure environments.

3. Supporting Skill Development and Succession Planning

   With reskilling now the top HR priority, coaching can guide employees through career transitions, help them identify strengths, and chart development paths. This not only addresses skill gaps but also boosts engagement by showing employees that their growth matters.

4. Enhancing Communication and Appreciation

   Coaching encourages open dialogue, regular feedback, and recognition of achievements. This combats the appreciation crisis and helps build a culture where everyone feels seen and valued.

Redesigning Work for the Future

The Gallup report is a wake-up call for UK business leaders. The old models of management are no longer fit for purpose in a world defined by rapid change, complexity, and human vulnerability. To reverse the increasing levels of disengagement and emotional strain, organisations must:

• Invest in manager development, with a focus on both people leadership and coaching skills.

• Prioritise mental health and well-being, making them central to business strategy.

• Foster open communication, appreciation, and a sense of belonging.

• Embrace succession planning and career development as retention strategies.

Conclusion

Our engagement crisis is real, urgent, and costly – but it is also reversible. By embracing coaching and reimagining leadership, we can build workplaces where people thrive, innovation flourishes, and performance soars.

The future belongs to organisations that put people first, where coaching is not a perk, but a core capability. If you want to explore how coaching can support your engagement challenge, contact me now for a free consultation.