Bernadette BoasExecutive Leadership Coach, Trainer and Speaker, Ball of Fire Coaching · Become the Leader Everyone Wants to Follow and No One Can Overlook.

Boost Employee Engagement: Managerial Disengagement Crisis Solved

31 Jan 2026 · 2 min

Watch on YouTube

2:23

In this interview excerpt, Bernadette Boas asks the co‑speaker about their biggest frustration with companies that slash development budgets during economic downturns. The speaker explains that many executives cut training because they don’t see a direct link between manager development and business performance. They cite the 2025 Gallup State of the Global Workforce survey, which found that 79% of employees worldwide are disengaged—costing the global economy $438 billion in lost productivity—and that 71% of managers are disengaged. Crucially, the survey shows that companies that continue to invest in manager development do not see a drop in engagement; instead, manager engagement rises, which lifts employee engagement and drives higher productivity, revenue, and profitability. The exchange underscores the argument that maintaining or increasing development budgets for managers is essential for sustaining engagement and financial performance, even in tough economic times.

So what is your pet peeve with, with that position that companies take when it comes to reducing budget, if not cutting it all out when it comes to tough economic times?
Yeah, I think, you know, Bernadette, when we have to downsize and lay people off, we have a smaller group of people that are available to us. And if we are going to survive in challenging times and thrive, we need them to be the best of who they are. The reason why organic companies and even executives cut the budget out when times get challenging is because they don't see a direct connection between developing and growing your people into the best leaders possible and an increase in productivity, revenue, and profitability. Yes. However, the best companies and the most successful companies and leaders, they see the connection. And this was shown in a survey that was recently done this year, 2025, by the state— by Gallup, the State of the Global Workforce. And what they found is, is that the companies who continue to develop their managers saw that there was not a decrease in engagement. And in fact, their managers were more engaged, which made their people more engaged, which helped to increase their productivity, their revenues, and profitability. You have to understand too, in this survey they said that 79%, 79% of employees worldwide are disengaged. And this is costing the global economy $438 billion in US dollars in lost productivity. And it points to the fact that 71, 71% of managers are disengaged. Managers are the closest to the employees. They're the ones that if they're disengaged, their people follow.
Absolutely.
And so it's so important to continue that growth and development.