Executive Summary: State of the Global Workplace 2024 Report - Focus on UK, Europe, and Ireland

Our global partner, Gallup, through its annual research from the world’s largest ongoing study of the employee experience, amplifies employee voices in decision-making, helping global leaders address key challenges. This Executive Summary offers insights from the world's largest ongoing employee experience study, revealing how employee sentiments predict organisational resilience and performance in the UK, Europe, and Ireland.

Employee Engagement and Economic Impact

The research highlights a critical issue: low employee engagement is costing the global economy $8.9 trillion, equivalent to 9% of the global GDP. This staggering figure underscores the importance of addressing employee engagement on a global scale. In Europe, there is significant variability in employee engagement across countries. Notably, the UK has a below-average engagement rate, with only 10% of the workforce engaged, despite having strong labor protections. This disparity suggests that protective labor laws alone are not sufficient to ensure high levels of employee engagement.

Mental Health and Wellbeing

Mental health and wellbeing are significant concerns across Europe. Approximately 20% of employees report experiencing daily loneliness, with remote workers being the most affected. The decline in wellbeing is particularly pronounced among younger employees in Europe and the UK in 2023. Additionally, high levels of stress and negative emotions are prevalent among disengaged employees, creating a challenging work environment in many European workplaces, including the UK.

Economic and Policy Influences

Economic and policy contexts play a crucial role in shaping employee experiences. European countries with robust labor rights report better life evaluations among employees. These rights encompass fair wages, safety, and social security, contributing to a more positive work environment. In Ireland, labor laws focused on fair wages and safe working conditions have positively impacted employees' emotional health. However, the UK, despite its strong labor protections, still struggles with low employee engagement. This highlights the need for more comprehensive and effective workplace practices.

Organisational Performance

The report indicates that high employee engagement leads to significantly better organisational outcomes in European and Irish companies. Engaged employees drive increased productivity, profitability, and customer satisfaction. Conversely, teams with low engagement experience higher absenteeism and turnover rates, which can detract from overall performance. In Europe and the UK, engaged teams are less likely to experience negative outcomes, underlining the critical importance of fostering employee engagement.

Role of Management

Management plays a pivotal role in shaping employee engagement. In the UK and Europe, engaged managers lead to higher engagement levels among their teams. Good management practices in Ireland have shown significant positive impacts on organisational outcomes, demonstrating the value of effective leadership. Best-practice organisations in Europe and the UK report high engagement levels, with three-fourths of managers and seven in ten non-managers being engaged. This data underscores the importance of strong, engaged leadership in achieving high employee engagement.

Results

The findings of the Gallup study make it clear that addressing employee mental health and engagement is crucial for enhancing organisational performance and overall employee wellbeing. Effective management practices and robust labor laws are essential for fostering a positive work environment and reducing stress among workers in the UK, Europe, and Ireland. By focusing on improving employee engagement, organisations can achieve significant economic benefits and cultivate a healthier, more productive workforce.

For more detailed insights, you can access the full report from Gallup HERE