The COVID-19 pandemic reshaped how people work.
Almost overnight, businesses adopted remote work, employees adjusted to new routines, and entire industries transformed.
The effects of this shift are still being felt today.
Gallup has tracked workplace trends since 2020, surveying over 400,000 US employees.
Their research reveals 12 major ways work has changed in the past five years.
The Rise of Remote and Hybrid Work
Before the pandemic, most remote-capable employees worked on-site (60%).
Only 32% had hybrid schedules, and just 8% worked fully remote.
That changed drastically in March 2020 when 70% of these employees shifted to working from home.
Today, workplace flexibility is the norm:
- 55% work hybrid
- 26% work fully remote
- 19% work on-site
This trend has been stable since mid-2022, though return-to-office mandates in 2025 may challenge it. Employees also have different work styles:
- Splitters: Prefer clear boundaries between work and personal life.
- Blenders: Move fluidly between work and personal tasks.
Matching employees with their preferred work style leads to better engagement and productivity.
Employee Engagement Hits a 10-Year Low
Workplace engagement saw years of improvement before the pandemic. But since 2021, engagement has steadily declined, reaching a decade-low in 2024.
Key reasons include:
- A lack of clear job expectations (only 44% of employees fully understand what’s expected of them, down from 55% in 2019).
- Declining connection to company purpose (only 30% feel connected to their employer’s mission).
- Remote workers struggling to maintain a sense of belonging.
A Growing Mental Health Crisis
Employee wellbeing has dropped to record lows. In 2019, 60% of employees reported thriving in life. By 2024, that number fell to 50%.
Gallup found negative emotions—such as stress and worry—spiked during the pandemic and remain high. Younger workers report the highest levels of burnout and pessimism about their future.
Workplace Wellbeing Efforts Falling Short
Companies are prioritizing mental health, but employees aren’t feeling the impact.
In early 2024, only 21% of employees strongly agreed that their organization cared about their wellbeing—a record low.
Good management plays a crucial role in workplace wellbeing.
Engaged employees experience 42% lower stress levels than disengaged employees, highlighting the importance of effective leadership.
The “Great Detachment”
A new workplace trend is emerging: The Great Detachment.
Employees are seeking new jobs at the highest rate since 2015, but many feel stuck due to a cooling job market and inflation.
Unlike the Great Resignation, where employees left jobs in droves, today’s workers are frustrated but unable to leave. This sense of being trapped has worsened overall job satisfaction.
Ongoing Workplace Disruption
Change is now a constant. A staggering 72% of employees report their organization has undergone major disruption in the past year.
Managers are feeling the strain:
- 69% report increased responsibilities for employees.
- 55% have experienced team restructuring.
- 46% have faced budget cuts.
These changes are making it harder for leaders to support their teams effectively.
Shifting Customer Expectations
Customers have higher expectations than ever.
Since the pandemic, 56% of employees have noticed changes in customer demands, with 71% reporting that customers want better digital experiences.
At the same time, customer service quality is slipping.
Only 28% of employees strongly agree they are proud of their organization’s products and services—a record low.
Managers Are Burning Out
The pressures of leading teams in this new work environment are taking a toll on managers. Many are less engaged and more likely to quit than the employees they manage.
This is a serious problem because strong managers are key to employee engagement, productivity, and job satisfaction.
Respect in the Workplace Is Declining
Workplace civility has worsened in recent years.
Employees report feeling less respected, especially during the Great Resignation when workers saw colleagues get promotions and raises while they were overlooked.
Forcing remote employees back on-site also contributed to this issue.
In 2022, feelings of respect among these workers dropped from 46% to 35%.
The AI Revolution Is Here
Artificial intelligence is becoming a workplace tool, but adoption is slower than expected. While 44% of white-collar workers report their company is using AI, only 15% use it weekly.
Meanwhile, 81% of frontline workers never use AI at all.
Among those using AI, 45% say it makes them more productive.
Leadership in Times of Change
At the start of the pandemic, companies adapted quickly, providing remote flexibility and better communication. Employees who received clear communication were:
- 4.3x more prepared for their jobs
- 8.7x more confident in their leaders
- 10.2x more comfortable with workplace changes
But as time went on, change fatigue set in. Many employees now feel disconnected from leadership and unsure about their future.
The Power of Great Managers
Poor management costs businesses $8.8 trillion globally—9% of global GDP. But great managers can turn things around.
One of the most effective tools is meaningful feedback. Employees who receive weekly, personalized feedback are:
- 4x more likely to be engaged.
- More productive, regardless of whether they work remotely or in-office.
Yet, only 21% of employees report getting meaningful feedback from their manager each week.
The Future of Work Depends on Leadership
The pandemic forced companies to rethink how work gets done.
While remote work increased flexibility, it also created a disconnect between employees and their organizations.
Mental health challenges, declining engagement, and shifting customer expectations have added further strain.
The solution lies in strong leadership. Organizations that invest in effective managers, clear communication, and workplace wellbeing will be best positioned for the future.
No matter how work evolves, great managers will be the foundation of a thriving, engaged, and resilient workforce.
FAQs
How has the workplace changed?
Since 2020, the workplace has undergone a major transformation.
Remote and hybrid work have become the norm, with most employees now having some level of flexibility.
Engagement has dropped to a 10-year low as workers struggle with unclear expectations and a weaker connection to their company’s mission.
Mental health concerns have surged, with stress and burnout reaching record highs. Employers are trying to prioritize wellbeing, but many workers feel unsupported.
Managers face increasing pressure as they navigate restructuring, budget cuts, and shifting responsibilities.
Customer expectations have also changed, with a greater demand for digital experiences, yet employees feel less connected to the quality of their company’s products and services.
Artificial intelligence is slowly integrating into the workplace, improving productivity for some but remaining underutilized by most.
The future of work depends on strong leadership, clear communication, and ensuring employees feel valued, supported, and connected to their organization’s goals.
How did Covid 19 affect the US job market?
COVID-19 dramatically reshaped the US job market, triggering mass layoffs, shifting work patterns, and altering employee expectations.
In early 2020, millions lost jobs as businesses shut down or scaled back operations. The unemployment rate soared to levels not seen since the Great Depression.
As companies adapted, remote work became widespread, fundamentally changing how and where people work.
The pandemic also fueled the Great Resignation, as workers re-evaluated career choices, seeking better pay, flexibility, and work-life balance.
Industries like hospitality and retail struggled to recover, while tech and e-commerce saw rapid growth.
By 2024, engagement and job satisfaction had declined, with many employees feeling disconnected and burned out.
AI and automation gained traction, reshaping job roles, while return-to-office policies created tension between employers and workers.
Although the job market has stabilized, ongoing economic uncertainty and evolving workplace expectations continue to shape the future of employment in the US.
What was the impact of COVID-19?
COVID-19 had a profound impact on nearly every aspect of life, reshaping economies, workplaces, and social structures worldwide.
The pandemic caused mass layoffs, business closures, and economic instability, leading to a sharp rise in unemployment.
Remote work became the norm, permanently altering workplace dynamics and employee expectations.
Mental health issues surged as people dealt with isolation, uncertainty, and burnout.
Healthcare systems were overwhelmed, exposing weaknesses in medical infrastructure and supply chains.
Education shifted online, creating learning gaps and disparities among students.
Consumer behavior changed, accelerating the growth of e-commerce and digital services while hurting traditional retail and hospitality industries.
Governments implemented unprecedented stimulus measures to stabilize economies, but inflation and supply chain disruptions followed.
Scientific advancements, including rapid vaccine development, highlighted the power of innovation in crisis response.
The long-term effects continue to shape work, public health, and economic policies, making COVID-19 a defining global event of the 21st century.
