Employee engagement is essential to business success, fueling morale, loyalty, productivity and innovation — all of which give companies a competitive edge in today’s market. Despite this, engagement remains low worldwide, with Gallup reporting that nearly 80% of employees are disengaged or actively disengaged at work, costing the global economy $8.8 trillion in lost productivity.

Low engagement has long been an issue for organizations, and while rates have slowly increased over the past decade — from 14% in 2013 to 23% in 2023 — most organizations struggle to make meaningful improvements. At the current pace, achieving even a 50% global engagement level could take another 25 years. This begs the question: Is high engagement an achievable goal, or is it out of reach?

The Link Between Employee Engagement and Leadership

Employee engagement doesn’t happen by chance. While some employees may be naturally motivated, creating an engaged workforce requires intentional support from leadership. Engaged employees are enthusiastic about their work and drive performance, innovation and progress — but poor leadership can quickly dampen that enthusiasm.

Leaders significantly impact employee well-being and job satisfaction. Gallup reports that 70% of a team’s engagement is directly influenced by its manager or team leader. However, many organizations struggle to identify effective leaders, choosing the wrong leadership talent 82% of the time. With odds like that, the chances of having the right leaders in place are low.

So, if engagement hinges on effective leadership, companies face a significant challenge. Managers are key to fostering engagement, but many lack the necessary skills and support. To address this, companies must assess their leadership teams and invest in developing better leaders.

Let’s examine three strategies to help organizations boost engagement and build an empowered workforce.

3 Strategies to Build a Strong Leadership Pipeline

1.   Make leadership development accessible to all employees.

In recent years, leaders have faced unique challenges, particularly during the COVID-19 pandemic, as they managed difficult decisions around work arrangements, staffing and strategic priorities. Many organizations, however, cut back on leadership development investments during this time, according to Training Industry research.

While investment in leadership development has rebounded since 2021, most programs remain limited to current managers, executives or high-potential employees. By expanding these opportunities to all employees, organizations can build a broader, more diverse pool of future leaders. Learning and development (L&D) can partner with human resources (HR) to ensure employees across all levels are equipped with leadership skills, ready to step into leadership roles when needed.

Leadership skills like problem-solving, communication and active listening benefit everyone, not just those in formal leadership roles. Expanding leadership development across the workforce helps create a stronger pipeline of future leaders.

2.   Ensure your leaders have the necessary support.

Building leadership skills is only part of the solution; organizations must also equip managers to thrive and engage meaningfully with their teams. Today’s managers are navigating an increasingly complex role, with demands from the business, their teams and the fast pace of technological change. If not managed well, these competing priorities can lead to stress and burnout. However, with the right support, managers can transform these challenges into opportunities for meaningful engagement.

Engaged managers are essential for an engaged workforce. When leaders feel connected and supported in their roles, their motivation and effectiveness are amplified, creating a ripple effect that enhances team performance and morale. To cultivate this engagement, L&D can play a pivotal role by implementing strategies that empower managers with resources, skills and realistic expectations. Here are some practical ways that L&D can help organizations support their leaders:

• Reduce administrative burden: Through L&D, organizations can introduce automation and tools that streamline daily tasks, allowing managers to dedicate more time to high-impact responsibilities like coaching and mentoring. Training managers on digital tools for scheduling, performance tracking and data management helps them spend less time on admin tasks and more on activities that drive engagement.
• Provide support resources: L&D can also provide managers with access to mental health resources, effective training and mentorship programs that improve leadership resilience. Specialized L&D programs in team building and conflict resolution further equip managers to create a positive, engaged environment that fosters team cohesion.
• Align expectations with realistic goals: L&D initiatives can help managers set achievable goals that align with the company’s priorities while recognizing their team’s capacity. Providing managers with goal-setting frameworks and regular check-ins to reassess objectives, especially during high-stress periods, promotes sustained engagement and helps prevent burnout.

3.   Build a learning culture.

Creating an engaged workforce requires a culture that values continuous learning. This goes beyond formal leadership training and includes skills development at all levels. Embedding learning into the company culture creates an adaptable workforce that’s ready for future challenges.

According to LinkedIn Learning’s 2024 Workplace Learning Report, companies with strong learning cultures report higher retention rates, increased internal mobility and a healthier leadership pipeline. Prioritizing learning empowers employees to grow their skills and helps create a more agile workforce. Here are some ways to foster a learning culture:

• Promote ongoing learning opportunities: Offer continuous training, mentorship and on-the-job development. Providing resources on topics like decision-making, emotional intelligence and strategic thinking helps employees naturally build leadership skills.
• Encourage cross-functional collaboration: Cross-functional projects and regular knowledge-sharing sessions allow employees to gain diverse perspectives, expand their networks and improve their problem-solving abilities. Exposure to different functions and challenges builds critical thinking and organizational awareness.
• Recognize learning and innovation: Acknowledge employees who actively pursue development and apply new skills. Recognition can include public acknowledgement, learning stipends or opportunities for promotions, reinforcing a culture of growth and motivating future leaders.

Moving Forward

So, is high employee engagement achievable? Absolutely — but it requires a strategic, organization-wide commitment to building leaders at every level. Increasing engagement is not easy, but by focusing on leadership development across the organization, companies can create an environment where every employee feels valued, empowered and invested in the company’s success.

This approach involves not only supporting managers in new ways but also fostering a culture of continuous learning that promotes growth and innovation. By embedding leadership skills throughout the workforce, companies can cultivate resilience, adaptability and motivation, empowering teams to drive engagement from within. This way, when employees are ready to step into leadership roles, they are prepared to succeed.