Every organisation depends on its people to deliver results. Yet developing their skills, supporting managers and keeping employees engaged can easily take a back seat to more immediate business priorities.
The consequences aren’t always obvious. They can appear gradually through declining productivity, difficulties retaining talent or teams struggling to adapt to change.
Recent research from Gallup and LinkedIn highlights three areas where the impact can be particularly significant.
According to Gallup’s State of the Global Workplace 2025, global employee engagement fell from 23% to 21% in 2024, with the decline estimated to have cost the global economy $438 billion in lost productivity.
That’s a substantial figure, but the consequences of disengagement are often much less visible within individual organisations.
Employees who feel disconnected from their work may be less inclined to contribute ideas, take initiative or go beyond their immediate responsibilities. Over time, this can affect team performance, collaboration and the overall working environment.
Engagement is influenced by several factors, including communication, recognition, management and opportunities for development.
While no single initiative can guarantee an engaged workforce, organisations that consistently support their people are better placed to address the factors that contribute to disengagement.
Managers have a considerable influence on how employees experience their work.
Yet Gallup’s 2025 report found that manager engagement fell from 30% to 27% in 2024, making managers the group that experienced the largest decline.
This is particularly concerning given the responsibilities managers carry, from setting expectations and managing performance to supporting employees through challenges and change.
And while someone may excel in their technical role, that doesn’t automatically mean they’re equipped to manage a team.
Leadership requires skills that need to be developed, including communication, delegation, coaching and conflict management.
Gallup’s research also found that managers who participated in development programmes achieved up to 18% greater improvements in their teams’ engagement compared with managers who did not participate.
The findings reinforce the value of providing managers with the tools and support they need, rather than expecting leadership capabilities to develop on their own.
Sources: Gallup: State of the Global Workplace 2025 and Gallup: Manager Development
Even the strongest business strategy depends on having people with the right skills to deliver it.
LinkedIn’s 2025 Workplace Learning Report found that 49% of learning and talent development professionals agreed that their executives were concerned employees lacked the skills needed to execute their business strategy.
It’s a reminder that employee development isn’t simply about improving how people perform their current roles. It’s also about preparing organisations for future challenges.
As technology evolves, customer expectations shift and responsibilities change, businesses need employees who can adapt and continue learning.
Without ongoing development, skills gaps can become more difficult to address, potentially affecting productivity, innovation and an organisation’s ability to respond to new opportunities.
The same LinkedIn report found that organisations with mature career development programmes reported greater confidence in attracting and retaining talent, alongside more positive expectations for profitability.
These findings highlight the importance of treating development as an ongoing process, aligned with both employee aspirations and business needs.
The research highlights something worth considering: the effects of employee development extend well beyond individual skills.
How people are managed, how engaged they feel and whether they have opportunities to grow can all influence an organisation’s ability to perform and adapt.
For businesses, the challenge is to make development meaningful. That means identifying genuine needs, supporting managers, creating opportunities to apply new skills and ensuring that learning aligns with organisational objectives.
Investing in people isn’t simply about helping employees become better at what they do today. It’s about building an organisation that’s better prepared for tomorrow.
If you’re looking to strengthen leadership and develop your people, we’d be happy to discuss how Mdina Partners can support your organisation.
Book a no-obligation discovery call to talk through what you’re facing and see where our team can help.
