Customers will never love a company until the employees love it first.
SIMON SINEK
In this article we’re taking a closer look at a sobering finding from the State of the Global Workplace: 2026 Report (you can read the full report here).
Gallup reports that only 20% of employees worldwide are engaged at work. This is the lowest level since 2020. Even more concerning? Manager engagement has dropped nine points since 2022. Last year, this engagement crisis cost the world economy approximately $10 trillion in lost productivity. That’s about 9% of global GDP.
What Exactly is Employee Engagement?
It is the level of mental and emotional connection an employee has to their work, team, and organization. When people are engaged, they bring passion, dedication, and discretionary effort. It leads to better retention, productivity, and customer service.
The Six Seconds Vital Signs model categorizes employees into three types:
- Engaged: Fully involved, connected, and committed.
- Neutral: Meeting basic requirements, but passive and just ‘following’.
- Disengaged: Isolated, disconnected, and actively moving away.
Engagement in the Age of AI: Why EQ Matters More Than Ever
As AI reshapes the workplace, many organizations are doubling down on efficiency and automation. But engagement isn’t built through systems; it’s built through how people feel, how they make decisions, and how they connect.
Emotions drive people, and people drive performance.
If we want committed, adaptable, future-ready teams, we must lead with Emotional Intelligence. Here is a practical roadmap for increasing engagement using the Know Yourself, Choose Yourself, Give Yourself model:
1. KNOW YOURSELF
Make Space for Real Conversations
AI creates a mix of excitement and uncertainty. Left unspoken, this often turns into quiet disengagement. Leaders who build engagement create space for honest dialogue by asking:
- What are you excited about?
- What concerns you?
- Where do you feel uncertain about your future?
Clarity reduces fear. When people can ‘Name it to Tame it’, they regain a sense of control.
2. CHOOSE YOURSELF
Shift From ‘Change is Happening to Me’ to ‘I Can Shape What’s Next’
Disengagement grows when people feel powerless. Instead of positioning AI as something being ‘rolled out’, involve your team in the process.
Ask them:
- Which tasks should be automated?
- Where is human judgment critical?
- How can your role evolve?
Autonomy is the fuel for intrinsic motivation.
3. GIVE YOURSELF
Reconnect People to Purpose
AI can optimize processes, but it cannot replace meaning. In times of change, people inevitably ask: ‘Does my work still matter?’ Your role as a leader is to make the answer visible by showing how their work impacts customers and why their specific human contribution matters now more than ever.
4. INTEGRATE EQ AND AI
(Don’t treat them separately)
The future isn’t EQ or AI, it’s both. The most engaged employees will be those who can adapt emotionally while learning new tools, combining data insights with human judgment and connection. That is where the real competitive advantage sits.
5. REDEFINE WHAT GETS RECOGNISED
People pay attention to what is rewarded. If you only recognize efficiency, engagement will drop. If you recognize learning, adaptability, collaboration, and customer impact, engagement grows. Recognition signals what truly matters. Choose wisely.
6. LEAD WITH HONESTY NOT CERTAINTY
In uncertain times, employees don’t expect you to have all the answers, but they do expect honesty. Be vulnerable enough to admit, ‘We don’t have everything figured out yet, but you have a role in shaping what comes next’. This builds the trust required for a safe, honest workspace.
The Human Bottom Line
AI will continue to transform how work gets done, but engagement will always come down to something deeply human:
- Do people feel seen?
- Do they feel they have a choice?
- Do they feel their contribution matters?
When we get these factors right, we see EQ in Action.
If you want to measure your team’s engagement and the key drivers of their performance, please feel free to contact me. I’d love to help you bridge the gap.