Australia | NZ vs The World: The Latest Engagement + Leadership Metrics

Puzzle Partners
5 days ago
4 min read

The 2025 Gallup State of the Global Workplace report provides a comprehensive overview of employee engagement and leadership effectiveness across various regions. This article compares the findings for Australia + New Zealand with the global averages, focusing on leadership and staff engagement, and highlights the potential for further improvement and the value it could deliver.

Overall, our region performs significantly better than the global average, though there remains significant room for improvement, and an opportunity to lead the world in creating workplaces that demonstrate the benefits of excellent leadership and corresponding staff engagement.

Firstly, let’s unpack the key findings from Gallup’s 2025 report.

employee engagement

Australia + New Zealand shows a slightly higher engagement rate (23%) compared to the global average (21%). However, the percentage of not engaged employees is also higher (65% vs. 62%), indicating a significant portion of the workforce is not fully committed to their roles. The actively disengaged rate is lower (12% vs. 17%), suggesting fewer employees are actively working against the organisation's goals.

While our region performs marginally better than the rest of the world, there is a clear opportunity to increase levels of engagement and in doing so create a more productive and purpose-driven workforce.

leadership impact on engagement

Leadership plays a crucial role in employee engagement. Globally, 27% of managers are engaged, which is slightly lower than the 28% in Australia + New Zealand. This marginal difference indicates that managers in Australia + New Zealand are somewhat more engaged than their global counterparts. However, the engagement level among individual contributors remains consistent at 18% in both regions and globally.

life evaluation + wellbeing

Australia + New Zealand outperform the global average in life evaluation metrics, with 56% of employees thriving compared to the global average of 33%. This higher rate of thriving employees suggests better overall wellbeing and satisfaction with life. The percentage of struggling employees is significantly lower (41% vs. 58%), and the suffering rate is also reduced (3% vs. 9%).

daily emotional experiences

Employees in Australia + New Zealand report higher levels of daily stress (49%) compared to the global average (40%). However, they experience lower levels of anger (15% vs. 21%), sadness (20% vs. 23%), and loneliness (12% vs. 22%). These findings suggest that while stress is a significant issue, other negative emotions are less prevalent in Australia + New Zealand.

Our experience of feeling stress “a lot of the day” in Australia + New Zealand has been on a steady trajectory upward since 2011, and now is nearly 10% higher than the global average. While the rest of the world has trended downward since Covid, Australia + New Zealand has continued to increase creating a significant delta with the rest of the world.

job market perception + intent to leave

The job market perception in Australia + New Zealand is more positive, with 72% of employees believing it is a good time to find a job, compared to the global average of 51%. Additionally, fewer employees are actively seeking new jobs (42% vs. 50%), indicating higher job satisfaction and stability

the value of engagement + leadership

Employee engagement is a critical driver of organisational success. Engaged employees are more productive, provide better customer service, and are more likely to stay with their organisation. Effective leadership is essential in fostering this engagement. Managers who are engaged and equipped with the right skills can inspire their teams, leading to higher levels of engagement and performance.

potential for improvement

Even though Australia + New Zealand has performed better than the global average in this study, there is still significant room for improvement. Increasing the engagement rate from 23% to higher levels seen in best-practice organisations (around 70%) could unlock substantial value. Gallup estimates that if the world's workplace was fully engaged, US$9.6 trillion in productivity could be added to the global economy, the equivalent of 9% in global GDP.

A number of initiatives can be undertaken to build further on successes, and mitigate weaknesses, including:

Enhance Manager Capability: Focus on developing managerial skills to further boost engagement and reduce stress. Less than half of the world’s managers (44%) say they have received management training. Providing basic role training for every manager can significantly reduce disengagement.
Teach Effective Coaching Techniques: Managers who receive training in effective coaching techniques can improve their performance by 20 to 28%. This training can lead to higher engagement levels among their teams.
Promote Work-Life Balance: Implement policies that address high stress levels, such as flexible working hours and mental health support. Engaged employees are less likely to report experiencing daily negative emotions, including stress.
Foster a Positive Work Culture: Encourage practices that reduce negative emotions and promote a sense of belonging and purpose among employees. This includes recognising and appreciating employees' contributions regularly.
Leverage Job Market Positivity: Utilise the positive job market perception to attract and retain top talent by highlighting growth opportunities and job stability.

conclusion

The Australia + New Zealand region exhibits higher employee engagement and better life evaluation metrics compared to the global averages. Leadership in these regions appears to be slightly more effective, contributing to a more engaged workforce.

Despite higher stress levels, other negative emotions are less common, and the job market perception is notably more positive. By addressing these areas, leaders in Australia + New Zealand can continue to improve employee engagement and wellbeing, setting a benchmark for global standards. Investing in leadership development and employee engagement strategies can unlock significant value, driving productivity and economic growth.