Employee Disengagement: Your Fault or the General Environment’s?
In an era of hybrid work, economic volatility, and social fatigue, employee disengagement is spiking across industries. But when productivity drops or enthusiasm fades, HR leaders and business owners are left asking: is this something we did—or is it just the world we live in?
This is more than a philosophical debate. Understanding the root of disengagement is critical to retaining talent, sustaining performance, and protecting organizational culture. In this blog, we examine the macroeconomic, organisational, psychological, and technological aspects of disengagement in 2025, providing actionable insights for CHROs, HR Directors, and business leaders.
The Macro Context: Why Everyone Seems Disengaged in 2025
We live in an era of cumulative fatigue. Global uncertainty, economic pressure, rising cost of living, AI disruption, political instability, and climate anxiety have created what mental health experts call a “collective burnout.” According to Gallup’s 2024 State of the Global Workplace Report, only 23% of employees worldwide feel engaged at work. In MENA, that number is even lower in sectors like public service and finance where digitization is creating role ambiguity.
🡒 Related Reading: Are We Taking the Human Out of HR?
At a broader level, disengagement is not just a workplace problem—it is a societal one. In Deloitte’s 2024 Global Human Capital Trends report, over 60% of respondents said they struggle to connect personal values to their organizational mission.
Moreover, AI-induced job insecurity and automation anxiety are reshaping how employees view long-term career stability. When employees fear becoming obsolete, disengagement becomes a defense mechanism.
🡒 External Insight: World Economic Forum – The Future of Jobs Report
The Internal Lens: How Leadership and Culture Shape Engagement
While macro forces shape perception, organizational culture dictates experience. Research from McKinsey shows that managers account for at least 70% of the variance in employee engagement scores.
Common internal triggers of disengagement include:
Micromanagement and lack of autonomy
Poorly communicated strategy
Limited development opportunities
Lack of psychological safety and trust in leadership
🡒 Explore: The Proactive Role of Employee Engagement in Business Success
At ANC Global, our experience with leadership diagnostics shows that team engagement significantly increases when middle management is trained in emotional intelligence and inclusive communication.
We work with clients to embed sustainable structures such as:
🡒 Further Reading: How to Build a Neurodiverse and High-Performing Team
The Role of Technology and AI in Disengagement
AI has transformed workflows, but it has also introduced new risks for disengagement. Repetitive tasks are being automated, leaving some employees to feel sidelined. Others struggle with adapting to new tools without adequate training support.
Digital communication overload also plays a role. The always-on nature of hybrid and remote work environments has blurred boundaries, increasing emotional detachment.
🡒 Related Reading: Building an HR Chatbot: Friend or Foe in the Workplace?
HR teams must balance efficiency with empathy—using AI to enable, not alienate. Upskilling and change readiness initiatives can soften the impact.
It’s Not Either/Or—It’s Interconnected
Disengagement must be viewed through a systems lens. It’s shaped by how your organization interprets external pressures and reflects them back through people systems, policies, and culture.
Organizations that thrive in high-pressure environments invest in:
Mental health frameworks
Culturally intelligent onboarding
Transparent communication ecosystems
Agile goal-setting and rewards programs
🡒 See: Employee Mental Health & Psychological Safety Matrix (EMHPS)
🡒 Explore Tool: Continuous Feedback Mechanism (CFM)
🡒 External Perspective: McKinsey – Great Attrition or Great Attraction?
What to Do Now: Strategic Actions for CHROs and HR Directors
To move forward, CHROs and People Officers should integrate engagement into core strategy, not treat it as a seasonal campaign. Here’s how:
Conduct Organizational Culture Audits – Go beyond engagement surveys to assess hidden friction points.
Refresh Your EVP – Align your Employee Value Proposition with shifting employee expectations.
Upskill Line Managers – Use coaching and Capability Development Matrix (CDM) frameworks.
Prioritize Internal Mobility – Build visibility into career pathways using Succession and Bench Assessments (SABA).
Reinforce Psychological Safety – Offer support tools like Neurotypical Employee Well-being
🡒 Read More: What Are Common HR Complaints and How to Fix Them
ANC Global works with organizations across the GCC, South Asia, and North America to reimagine engagement as a dynamic, evolving process—one that integrates human need with business performance.
How ANC Global Can Empower Your Business
At ANC Global, we specialize in helping growth-minded entrepreneurs tackle their HR challenges with tailored solutions that drive results. Here’s how we can support your business:
- Custom HR Strategies: From recruitment to employee engagement, we design HR strategies that align with your specific needs.
- Compliance Expertise: Our team ensures your business stays compliant with labor laws, mitigating risks and protecting your reputation.
- Leadership Development: We provide tools and guidance to help you build a strong leadership team that inspires and drives performance. Explore our Leadership Assessment Framework (LAF).
- Cost-Effective Solutions: Our consultative approach empowers you with best practices and tools, allowing you to implement sustainable HR solutions without breaking the bank.
Get Started Today
Are you ready to unlock your business’s full potential? Let ANC Global be your trusted HR partner. Our innovative, practical, and sustainable HR solutions are designed to help you overcome challenges and achieve your goals.
Contact us today to learn more about how we can help your business thrive: Get in Touch.
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