The US economy is currently boasting low unemployment and decling quite rates.
It is also predicted it will get a boost from the incoming Presidential return of Donald Trump.
However, despite the strength, all is not well within the workplaces of North America.
New research from Gallup shows employee engagement has dropped to historic lows, with many workers feeling disconnected with their organization’s missions and values.
The research finds workplaces are still struggling to recover from the disruptions of the pandemic.
There is also uncertainty around the fast changes in technology and ongoing economic issues.
Gallup has identified seven major challenges facing bosses in 2025.
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The Great Detachment
Employee engagement in the US has hit an 11-year low.
While quit rates remain steady—likely due to economic concerns—disconnection from the workplace is growing.
This phenomenon, dubbed “the Great Detachment,” represents a significant challenge for leaders.
Key facts include:
- Employee satisfaction has reached record lows
- Job-seeking activity is at its highest since 2015
Re-engaging employees will be vital to boosting performance and loyalty.
Poor Job Markets Fuel Discontent
Gallup’s global workplace data shows a strong link between job market health and employee engagement.
In tougher markets, employees are more likely to feel actively disengaged, as limited opportunities leave them feeling trapped in unsatisfying roles.
However, improved job market conditions often shift employees from anger to indifference, rather than to inspiration.
For leaders, this means improving engagement requires more than just better economic conditions.
US Employee Life Evaluation Hits Record Low
Only 50 percent of US employees report thriving in their overall lives—a new record low since Gallup began tracking wellbeing in 2009.
Employees who thrive are less likely to miss work due to health issues and are more likely to remain loyal to their employers.
However, perceptions that organizations care about employee wellbeing remain far below pre-pandemic levels. Leaders must make wellbeing a central priority to ensure sustainable performance and retention.
AI Adoption in the Workplace Stalls
Despite heavy investment in artificial intelligence (AI) since the release of ChatGPT in 2022, employee adoption of AI tools remains sluggish.
Nearly 70% of employees say they never use AI at work, and only 10% report using it weekly.
Even more concerning, the number of employees who feel prepared to work with AI has declined.
This highlights a gap between leadership’s vision for AI integration and employees’ readiness to adopt new technologies.
Clear strategies and training are essential to bridging this divide.
Child Care Remains a Barrier for Working Mothers
Women with children continue to face significant challenges in advancing their careers.
About 35% of working mothers say they have declined or delayed promotions due to family obligations, compared to 18% of working fathers. This imbalance often leads women to consider reducing their hours or leaving their jobs altogether.
Organizations must adapt job structures and workplace norms to better support working mothers. Women who feel they can balance work and personal commitments are more engaged, thriving, and less likely to look for other opportunities.
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Feedback and Recognition: Managerial Blind Spots
Gallup data reveals a stark disconnect between how managers perceive their leadership and how employees experience it. For example, 50% of managers believe they provide weekly feedback, but only 20% of employees agree.
Similarly, gaps exist in recognizing employees’ good work.
Establishing regular coaching practices that include meaningful feedback and recognition offers a significant growth opportunity for managers.
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Hybrid Work Requires Better Collaboration
Hybrid work remains a dominant trend, with 53% of remote-capable employees working in hybrid arrangements. However, effective collaboration among hybrid teams remains a challenge.
The most successful teams create “team charters” to define their unique working styles, prioritize in-office time for collaboration, and regularly assess their hybrid work processes.
These practices can boost productivity and foster stronger connections among team members.
Building a Resilient Workplace for the Future
Addressing these challenges requires bold leadership and innovative strategies. Leaders must prioritize engagement, wellbeing, and adaptability to build workplaces that not only navigate uncertainty but thrive in it.
By taking proactive steps, organizations can create environments where employees feel valued, supported, and inspired to contribute their best efforts.
