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Workplace Challenges for 2025

Workplace Challenges for 2025

Jan. 23, 2025
Gallup says leaders need to prioritize creating a culture of well-being that surpasses their current efforts to sustain employee performance.

With the start of every new year, it makes sense to look at the trends that will affect your workforce. A recent article from Gallup on workforce trends found a number of interesting trends.  

They note "historically low employee engagement and wellbeing levels indicate employees are struggling. Many report feeling disconnected from their organization’s mission and like their organization doesn’t care about them."

Furthermoe, the measure of key employee experiences remain below pre-pandemic levels. 

The article dicusses trend employers will face this year. (Three are excerpted here.)

The Great Detachment Threatens Performance

In 2024, U.S. employee engagement reached an 11-year low. Other key measures tell an even gloomier story: Overall employee satisfaction returned to an all-time record low, and employees are seeking new job opportunities at the highest level since 2015.

Unlike the Great Resignation of 2021, employee quit rates have not increased. Perhaps concerned about a weaker job market and inflation, workers are sticking with their current employer while feeling more disconnected than ever. Gallup refers to this as “the Great Detachment.”

Re-engaging the workforce and re-building employee commitment will be a critical leadership challenge in the coming year.

U.S. Employee Life Evaluation Hits Record Low

Fifty percent of U.S. employees are thriving in their overall lives -- a new record low in Gallup’s trend measuring employee wellbeing since 2009. Thriving employees who rate their current and future lives positively are less likely to miss work because of health issues and are less likely to seek another job.

At the same time, the percentage of employees who believe their organization cares about their wellbeing is well below pre-pandemic levels. Leaders need to prioritize creating a culture of employee wellbeing that surpasses their current efforts if they want sustainable employee performance.

Feedback and Recognition: Biggest Manager Blind Spots

To better understand conflicting perceptions of the workplace, Gallup studied how managers think they lead their teams versus how employees say they are being managed. For example, 50% of managers strongly agree they are giving feedback to their direct reports every week, while only 20% of individual contributors strongly agree their manager does so. When it comes to managers giving recognition for good work, a similar gap emerges.

Establishing a weekly coaching habit that includes meaningful feedback and recognition for quality work is a key growth opportunity for managers.

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