The modern workplace often feels like a rapidly shifting landscape, isn’t it? Between technological acceleration, evolving employee expectations, and economic uncertainties, Employee Engagement in India has become a crucial topic for leaders as they grapple with fundamental questions about productivity, resilience, and human potential.
A recent report, Gallup’s “State of the Global Workplace: 2025 Report,” offers a compelling snapshot of this turbulent environment, drawing on the world’s largest ongoing study of the employee experience. It underscores a pivotal moment where employee engagement is flagging precisely as artificial intelligence is poised to reshape industries.
But within this global narrative lies a specific, urgent story about India, a story of significant challenges in employee well-being yet also immense potential for a productivity leap, particularly when focusing on Employee Engagement in India.
The report provides critical insights into how employees perceive their work and their lives, viewing this as an important predictor of organizational resilience and performance. Indeed, when employee engagement faltered globally last year, it carried a hefty price tag, costing the world economy an estimated US$438 billion in lost productivity.
This is not merely an abstract statistic; it represents lost innovation, diminished service, and untapped potential across continents. The sheer scale of this loss begs the question: what if the pendulum swung the other way?
Gallup estimates that achieving full global workplace engagement could inject a staggering US$9.6 trillion in productivity into the world economy, equivalent to 9% of global GDP. Imagine that!
A gain of nearly ten trillion dollars, not from a miraculous technological invention, but from simply enabling people to feel more involved and enthusiastic about their work. This colossal figure highlights the profound connection between human thriving and economic prosperity.
While the report paints a picture of challenges, it also holds “Hope in the Data,” identifying key actions leaders can take to seize this moment.
For a nation like India, with its vast workforce and dynamic economy, understanding and acting on the levers of Employee Engagement in India could be the key to unlocking a significant portion of this global productivity opportunity.
The Global Workplace Landscape and Employee Engagement in India
At its core, employee engagement reflects the involvement and enthusiasm employees feel towards their work and workplace. Engaged employees aren’t just showing up; they are thriving at work, deeply involved, enthusiastic, and demonstrate psychological ownership. They are the engines driving performance and innovation, propelling the organization forward.
Gallup’s measurement of engagement uses a proprietary formula based on the Gallup Q12® items, which are protected by law. This isn’t a simple satisfaction score; it’s a measure tied to specific workplace outcomes. Engaged employees represent a much higher bar than those merely satisfied or who agree with statements.
Globally, the percentage of engaged employees saw a dip, falling from 23% to 21% in 2024. This two-point drop mirrored the decline seen during the year of COVID-19 lockdowns, a stark reminder of the fragility of engagement in the face of disruption.
The report segments the world into various regions for analysis, including South Asia. The South Asia region, as defined by Gallup, includes Afghanistan, Bangladesh, India, Nepal, Pakistan, and Sri Lanka.
While the report provides regional averages, it also offers country-specific data for some key metrics within these regions in the appendices. To truly understand Employee Engagement in India, we must look at both the regional context and the specific data points provided for India.
South Asia as a region ranks lower than the global average for engagement, with 26% of employees reported as engaged.
Looking specifically at India, the data shows that 30% of employees are engaged, ranking first within the South Asia region for this metric. This figure is notably higher than the regional average (26%) and the global average (21%), suggesting a relative strength in engagement compared to its neighbours and the world, but it still means a significant majority are not highly involved or enthusiastic.
A Stark Reality Check: Wellbeing and Employee Engagement in India
However, the picture becomes more complex and, frankly, concerning when we look beyond engagement numbers to employee wellbeing and daily emotions.
Gallup’s report categorizes individuals’ life evaluations into three states: thriving, struggling, and suffering. This evaluation is based on a 0-10 ladder scale, where “suffering” is rated at 4 or below for both current and future lives.
Individuals classified as suffering often report miserable lives, lacking basic necessities, and experiencing heightened levels of physical pain, stress, worry, sadness, and anger.
Navigating the Nuances of Suffering and Struggle in South Asia
Some articles in media mentioned that “nearly 90% of Indian employees say they are suffering.” Based on the Gallup’s report, this specific statement about suffering levels in India requires careful qualification.
The report states that the suffering percentage for the South Asia region is 21%. The thriving percentage for the region is 15%, and the struggling percentage is 63%.
If we combine the struggling and suffering categories for South Asia, we get 84% (63% struggling + 21% suffering). This 84% figure represents employees who are not thriving and is indeed close to “nearly 90%,” but it encompasses both struggling and suffering individuals, not just suffering ones.
The report does provide a specific thriving rate for India, which is 17%. However, it does not explicitly break down the struggling and suffering percentages for India specifically, separating them from the broader South Asia regional data.
Therefore, the claim that nearly 90% of Indian employees are suffering is not directly supported by the provided data.
The data does show that a very large percentage (84%) of employees in the South Asia region (which includes India) are classified as either struggling or suffering. While we don’t have the precise split for India, the regional data indicates a significant well-being challenge, with 21% suffering and 63% struggling.
This paints a picture where a substantial majority (84%) are not experiencing the best possible life according to the life evaluation scale used.
This high percentage of non-thriving employees in the region is a critical context when discussing Employee Engagement in India.
The Pervasiveness of Sadness and Other Emotions
Beyond the life evaluation, the report probes daily emotional experiences. And here, the data for India and South Asia presents a stark picture.
Globally, 23% of employees reported experiencing sadness a lot of the previous day. The South Asia region stands out grimly in this regard, ranking highest regionally for the percentage of employees experiencing daily sadness, at 39%.
Looking specifically at India, the percentage of employees who reported experiencing sadness a lot of the previous day is also 39%. This figure is indeed very close to “over 40%,” highlighting a significant prevalence of sadness among the Indian workforce according to this data.
South Asia also ranks highest regionally for the percentage of employees experiencing daily anger, at 34%.
For India specifically, the figure for daily anger is also 34%, placing it second within the region for this emotion.
Stress is another common emotion experienced by employees globally. While South Asia’s regional stress level is 31%, below the global average of 40%, India’s specific stress figure is also 31%.
Loneliness is also measured, with the South Asia regional figure standing at 29%, and India’s specific figure is also 29%.
In summary, while India shows a relatively higher engagement rate compared to the regional and global averages, the data on life evaluation and daily emotions reveals a troubling reality for many employees in India and the broader South Asia region.
The region has the lowest percentage of thriving employees globally (15%) and the highest percentage of daily anger and sadness.
India’s figures for sadness (39%), anger (34%), stress (31%), and loneliness (29%) underscore significant emotional challenges faced by its workforce.
This disconnect between relatively higher engagement and pervasive negative emotions and low well-being is a fascinating, albeit concerning, dynamic that merits deep consideration when discussing Employee Engagement in India.
How can employees be engaged if so many are struggling or suffering and experiencing high levels of negative emotions? It suggests that while some aspects of the work experience might foster involvement, the overall life and emotional context for many is incredibly challenging.
Connecting Wellbeing, Employee Engagement in India, and the Productivity Puzzle
The Gallup report emphasizes that employee engagement is a key predictor of organizational resilience and performance. It’s logical, isn’t it? If employees are enthusiastic and involved, they’re more likely to go the extra mile, collaborate effectively, and contribute positively to the bottom line.
Conversely, when employees are struggling or suffering and experiencing high levels of negative emotions, their ability to be productive, innovative, and resilient is undoubtedly compromised.
The Cost of Disengagement
The global loss of US$438 billion in productivity due to falling employee engagement is a stark reminder of the economic consequences of a disengaged workforce. Disengaged employees may be physically present but psychologically absent. They might do the bare minimum, lack creativity, or even actively work against the organization’s goals (classified as actively disengaged). This lack of motivation and connection translates directly into inefficiencies, errors, lower quality, and decreased output.
In a large and rapidly developing economy like India, the potential productivity loss from struggling, suffering, and disengaged employees is immense.
While India’s engagement rate is higher than the global average, the high prevalence of negative emotions and low thriving levels suggest that even among those categorized as “engaged” or “not engaged,” there might be significant underlying well-being issues impacting their full potential.
Employees grappling with constant sadness, anger, stress, or loneliness are less likely to be operating at their peak, regardless of their formal engagement category.
The human cost of this is immeasurable, but the economic cost, while harder to pinpoint specifically for India from the provided report, is undoubtedly substantial.
The Trillion-Dollar Opportunity
This is where the narrative shifts from challenge to opportunity. Gallup’s estimate of a US$9.6 trillion global productivity boost from full engagement isn’t just a theoretical maximum; it’s a target that highlights the untapped potential residing within the workforce. If organizations globally could reach even 70% engagement (a level already achieved by some best-practice organizations), the economic gains would be enormous.
For India, a nation aiming for higher economic growth, unlocking this productivity powerhouse through improved Employee Engagement in India and enhanced wellbeing presents a transformative opportunity.
Addressing the high levels of sadness and struggle isn’t just a humanitarian imperative; it’s an economic necessity. A workforce that feels better, both about their lives and their work, will inherently be more dynamic, creative, and productive.
The report indicates that improvements in engagement and well-being can indeed lead to higher productivity and profitability across various industries and cultures.
Imagine the collective power unleashed if the sadness and struggle seen in the data were significantly reduced, freeing up mental and emotional energy for focused, enthusiastic work.
The Linchpin: Managers and Employee Engagement in India
How does an organization, or even a nation, pivot from pervasive struggle and negative emotions towards higher engagement and thriving? The Gallup report points to a critical factor: managers.
Why Managers Matter So Much
The relationship between managers and their teams is incredibly powerful. Engaged employees tend to be more productive, absent less, build better customer relationships, and close more sales. And what factor most engages work teams? Their manager.
The report explicitly states that if managers are disengaged, their teams are likely to be disengaged too, a relationship strong enough to show up in country-level data. If manager engagement declines, the ripple effect on overall employee engagement and global workplace productivity is a significant risk.
This makes intuitive sense, doesn’t it? Managers are on the front lines. They set expectations, provide rereport, offer recognition, facilitate development, and ideally, show care for their team members.
They are the primary channel through which organizational culture and values are experienced by individual contributors. A great manager can buffer a challenging work environment, while a poor manager can make even a good job unbearable.
Investing in Manager Development: A Path to Better Employee Engagement in India
Given the pivotal role managers play, the report highlights manager development as a key action for leaders seeking to improve engagement and well-being. Less than half of the world’s managers (44%) report receiving management training. The decline in manager development globally is concerning, with most managers indicating they haven’t received training for their roles.
However, the data offers compelling evidence for the impact of training. The report reveals that among managers who receive training, half as many are actively disengaged compared to untrained managers. This suggests that even basic training in role responsibilities can prevent managers from feeling overwhelmed (“drowning”). Furthermore, manager training focused on best practices can significantly boost performance metrics (20% to 28%) and improve employee engagement on their teams (up to 18%).
Crucially, manager development is also a powerful lever for improving manager wellbeing. Providing manager training alone increases manager thriving levels from 28% to 34%. But if managers not only receive training but are also actively encouraged in their development by someone at work, their thriving rate jumps to a remarkable 50%. Considering the impact managers have on their teams’ wellbeing, investing in manager training and development emerges as one of the most effective “wellbeing initiatives” employers can pursue.
For India, where managers in South Asia have the highest engagement rate (37%) compared to individual contributors (20%) in the region, but still operate within a context of low overall well-being and high negative emotions, focusing on equipping these managers is paramount.
Empowered, well-trained managers are better positioned to support their teams, foster a positive environment, and directly influence both Employee Engagement in India and the overall well-being of the workforce.
By investing in managers, organizations in India can not only improve their immediate team dynamics but also contribute to the broader national goal of unlocking greater productivity.
Charting a Course for Enhanced Employee Engagement in India
The path forward, as suggested by the Gallup report and illuminated by the data points for India and South Asia, seems clear, though certainly not easy. It requires a deliberate, data-informed strategy centred on improving the human experience at work.
Leaders in India must acknowledge the high levels of sadness, anger, stress, and struggle indicated by the data. These aren’t minor issues; they represent a workforce carrying a significant emotional burden, which inevitably impacts their ability to thrive and contribute fully.
Prioritizing Employee Engagement in India means going beyond superficial perks or satisfaction surveys. It means delving into the core elements of the Gallup Q12 framework, ensuring employees know what’s expected, have the right tools, feel they can do what they do best, receive recognition, feel cared for, see development opportunities, feel their opinions matter, connect to the company’s mission, work with committed colleagues, have workplace friendships, discuss their progress, and have opportunities to learn and grow.
Critically, it means investing heavily in managers. Providing comprehensive training and ongoing development for managers is not just an HR initiative; it’s a strategic business imperative with the potential to significantly boost engagement, performance, and well-being, thereby contributing to the massive global productivity opportunity highlighted by Gallup. Rethinking the manager’s role, expectations, and support systems is key.
The report concludes with a call to action for executives: invest in the future of management or risk the consequences of inaction. For India, a country on the cusp of significant economic growth, this message resonates profoundly. Addressing the wellbeing challenges and actively fostering Employee Engagement in India is not just about catching up; it’s about leading the way towards a future where productivity is fueled by human potential, not despite its struggles, but because those struggles are actively acknowledged and addressed.
Here’s What I Think
Based on the compelling data from the Gallup report and the specific context of India, I believe the situation presents a unique inflexion point.
While the high rates of sadness and struggle are undeniably concerning, they also highlight a massive area for potential improvement and subsequent productivity gains.
My take is that simply implementing standard management training, while necessary and impactful as the report suggests, might not be sufficient to address the depth of the well-being challenges indicated for the South Asia region and India. We need more radical, culturally attuned interventions.
First, I think organizations in India should consider building wellbeing support directly into the management structure, perhaps appointing “Wellbeing Champions” within teams or providing managers with specialized training in mental health first aid and emotional intelligence, going beyond typical management best practices. This would equip managers to not only improve engagement but also to recognize and support employees struggling with the high levels of sadness and stress reported.
Second, I believe there’s a significant opportunity to leverage technology in innovative ways that weren’t explicitly detailed in the report’s AI discussion. Imagine AI-powered tools designed to provide confidential mental health support and coping strategies tailored to the specific cultural context, accessible directly to employees.
This could bypass potential social stigmas associated with seeking help and offer immediate, personalized support, addressing the reported sadness and stress head-on. Furthermore, could AI analytics be used to identify early indicators of team stress or disengagement before they manifest as significant problems, allowing for proactive managerial intervention?
Third, I think the focus needs to shift beyond just the employer. Given the high levels of struggle and suffering reported regionally, there’s a role for broader societal and governmental initiatives. Could government-backed campaigns promote mental well-being in the workplace, providing accessible rereport, or even incentivizing companies that demonstrate significant improvements in employee well-being metrics, not just engagement? A national dialogue about the human cost of the current work environment, backed by data like this, seems crucial.
Finally, I believe fostering genuine workplace friendships (“I have a best friend at work” is a Q12 item) is more critical than ever, especially given the reported loneliness.
In increasingly remote or hybrid work models, intentional efforts to build social connections – perhaps through structured team-building activities focused purely on human connection rather than task completion – could counteract the feelings of isolation and significantly boost both well-being and engagement.
This might seem simple, but sometimes, the most impactful solutions are rooted in fundamental human needs.
The path to unlocking India’s productivity powerhouse is paved with prioritizing the human element, with innovative, empathetic, and culturally sensitive strategies that tackle the deep-seated challenges revealed by this report.
Sources of Insight:
Ajay Dhage is a seasoned Talent Acquisition leader with over 20 years of experience in recruitment and workforce strategy. Currently serving as the Talent Acquisition Lead for a global Oil & Gas EPC Company in India, ajay oversees the entire talent acquisition lifecycle across diverse and complex projects, from sourcing to onboarding and aligning top talent with complex organizational goals. With a proven track record in industries such as oil and gas, EPC, and renewables, he brings a customer-focused approach and innovative mindset to every project.
Through ajayable.com, ajay aims to share insights, trends, and strategies to empower HR professionals, Organizations and recruiters to excel in a competitive talent landscape.
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