The uncertainties of today’s employment landscape is seemingly taking a toll on India’s workforce.
According to the 2026 State of the Global Workplace report from research and analytics firm Gallup, only 23 per cent of surveyed Indian employees claim that they feel engaged at work as against 30 per cent in 2025.
The decline of 7 per cent points is among the highest in the world and is significantly higher than the global decline in employee engagement of 1 per cent point.
Learn and grow
As defined by the report, employee engagement reflects the involvement and enthusiasm of employees at work when their basic needs are met, can contribute meaningfully, feel a sense of belonging and have opportunities to learn and grow. Higher employee engagement is linked to business-unit productivity, including profitability and sales, the report said.
Despite the drop, the share of engaged Indian employees continues to be higher than the global average of 20 per cent. India’s 2026 engagement levels is higher than peers like China (11 per cent), the UK (10 per cent) and Japan (8 per cent), but lower than the US (32 per cent).
According to Shailesh Khanna, Brand Lead-Manpower, ManpowerGroup India, despite a reasonably favourable hiring landscape, there seems to be a gap in employee experience.
Pace of change
“The key factor seems to be the pace of change. As technology adoption accelerates, employees are constantly adapting, often without enough support, which can create pressure instead of confidence,” he said.
He added that increasingly, managers are having to handle larger teams, and that directly impacts how much time they can spend on coaching and supporting their people.
On the other hand, he mentions that the rampant lay-offs in the technology sector have created a broader sense of uncertainty across the workforce. “Even employees who are not directly affected are influenced by concerns around stability and future growth, which can impact engagement,” he said.
Other factors such as compulsory return-to-office policies, are affecting employee trust and stability, he added.
Meanwhile, the report also measures other employee well-being metrics such as stress, triumph and outlook on the job market. It showed that 28 per cent of Indian employees reported daily stress, while only 17 per cent said they were thriving at their job. More than 50 per cent said that now is a good time to find a job.
Khanna flagged that these metrics are a cause of concern and are usually a sign of what is coming next.
“Even if India is performing better than some global markets, a downward trend needs attention. Over time, lower engagement can show up as higher attrition, lower productivity, and reduced ownership at work,” he said.