thrive at work/The cost of disengagement: the data (2026)

Data hub · Updated quarterly

The cost of disengagement: the data.

Disengagement is the most expensive problem most organizations never put a number on. Here is what the latest data says it costs — globally and per organization — and the capacity signal underneath it. Every figure cited and dated.

Last reviewed June 2026
20%
of employees worldwide are engaged at work
Gallup, 2026
~$8.8tn
annual cost of low engagement — ~9% of global GDP
Gallup estimate
64%
of employees are not engaged; 16% actively disengaged
Gallup, 2026
up to 5.2×
more return on engagement when aimed at depleted teams
Thrive, n=10,000+

What is the cost of employee disengagement and burnout?

Disengagement and burnout cost you through lost output, errors, absence, and turnover. At the Eurostat average labor cost of €34.90 per hour, every hour lost per person adds up fast. Work out your own figure: hours lost per person per week, times headcount, times hourly cost. thrive at work shows where those hours are being lost.

How do you prove the ROI of an employee engagement program?

Compare the cost of lost performance with the cost of acting. thrive research shows employees in the lowest capacity quarter deliver 56% of priority tasks on time, against 86% in the highest. thrive at work tracks that gap by group over time, so you can show it narrowing.

The formula: people affected × hours lost per week × hourly labor cost × 46 weeks.

Example: 100 people × 2 hours × €34.90 (Eurostat average hourly labor cost) × 46 = €321,080 a year.

The scale of disengagement.

Engagement has fallen to its lowest level since the pandemic. The 2026 Gallup data shows a workforce that is, on the whole, switched off — and managers are taking the hardest hit.

20%
of employees globally were engaged at work in 2025 — down from a peak of 23% in 2022–23, the first time Gallup has recorded two consecutive years of decline.Gallup — State of the Global Workplace: 2026 Report
64% / 16%
are not engaged / actively disengaged respectively — the large middle that shows up but has checked out, plus a vocal minority working against the organization.Gallup — State of the Global Workplace: 2026 Report
Managers
have been hit hardest: manager engagement fell, and manager wellbeing dropped most among older and female managers — the people expected to hold teams together.Gallup, 2026
Lowest
engagement is in Europe (12%), well below the global average — a structural drag on productivity across the region.Gallup — State of the Global Workplace: 2026 Report

What it costs.

Disengagement is not a soft metric. Gallup puts a hard number on it, and at the organization level it converts directly into lost productivity, turnover and absence.

~$8.8tn
is the estimated annual cost of low engagement to the global economy — roughly 9% of global GDP.Gallup estimate
$9.6tn
is the productivity Gallup estimates the world could add if engagement reached best-practice levels — the size of the opportunity, not just the cost.Gallup, 2026
0.5–2×
annual salary to replace an employee — and disengaged, burned-out employees are the most likely to leave, making disengagement a leading driver of turnover cost.SHRM; Gallup, 2026
Presenteeism
— disengaged employees who stay produce less while still on payroll — is widely estimated to cost more in aggregate than absenteeism.Occupational-health literature
Put a number on it

Our cost-of-burnout calculator estimates the turnover, productivity and absence cost for your own headcount, salary and sector — with every assumption shown.

What drives it.

Disengagement is rarely about effort or attitude. The data points to structural causes — and to depletion as a leading one.

Managers
account for roughly 70% of the variance in team engagement, yet fewer than half report having had any formal management training.Gallup
Burnout
and disengagement are linked: depleted employees disengage. Chronic workload, poor recovery and low autonomy erode both at once.Maslach & Leiter; Gallup
Capacity
— the physical and cognitive headroom to do the work — is the layer engagement surveys miss entirely, and a leading early indicator of disengagement risk.thrive at work

The capacity signal.

Engagement tells you whether people are switched on. It can't tell you whether they have the capacity to stay that way. Our validation study (n=10,000+) quantifies the gap.

up to 5.2×
more return on an engagement initiative when it's aimed at low-capacity teams rather than already-resourced ones — capacity tells you where to spend.thrive at work — validation study, n=10,000+, 2026
up to 37%
of eNPS variance is explained by capacity beyond what engagement captures — the signal an engagement-only tool can't recover.thrive at work — validation study, n=10,000+, 2026
52% → 88%
Employee-NPS rises across the Thrive range — the higher the capacity, the more people stay and the less disengagement costs.thrive at work — within-instrument validation, 2026

Method & sources.

This page curates published engagement statistics alongside thrive at work's own validation data. External figures are summarized directionally with the source and year given; the global cost and engagement figures are Gallup's. Figures attributed to thrive at work come from our validation study (n=10,000+, 2025–26) and are labelled as such.

We review this page quarterly and refresh figures as new editions of the underlying reports are published. Last reviewed June 2026.

  1. Gallup — State of the Global Workplace: 2026 Report (published April 2026, data collected 2025). Global engagement (20%), the not-engaged (64%) / actively-disengaged (16%) split, daily stress (40%), Europe (12%) and manager engagement. The ~$8.8tn / ~9%-of-GDP cost of low engagement is Gallup's flagship estimate from the report narrative.
  2. SHRM — Cost of replacing an employee. Replacement cost commonly estimated at one-half to two times annual salary.
  3. Maslach & Leiter — Areas of Worklife. The framework linking workload, control and recovery to disengagement and burnout.
  4. thrive at work — validation study, n=10,000+, 2025–26. Capacity's unique explained variance, the engagement-return multiplier, and the retention gradient.

Common questions

How much does employee disengagement cost?
Gallup estimates low engagement costs the global economy about US$8.8 trillion a year — roughly 9% of global GDP. At the organization level it converts into lower productivity, higher turnover and more absence. With only 20% of employees engaged, the cost is widespread, not marginal — estimate yours with our calculator.
What percentage of employees are engaged at work in 2026?
About 20% globally in 2025 (Gallup, 2026) — down from a 23% peak in 2022–23. Around 64% are not engaged and 16% are actively disengaged. Engagement is lowest in Europe, at 12%.
Why does measuring capacity reduce the cost?
Disengagement and burnout are linked — depleted people disengage. Measuring capacity alongside engagement shows which teams are running low on headroom before disengagement and attrition follow, so you act on the cause. Read the paradox →

Stop paying for disengagement you can't see.

Thrive measures capacity and engagement together — per team, before disengagement turns into attrition. Book a diagnostic call to see how.