Signal File: how the system of work is straining under pressure
Declining engagement, early exits and worsening health outcomes reveal a growing mismatch between workplace expectations and the systems designed to support them
Pressure is building across the system of work. Manager engagement is falling, some experienced workers are stepping away rather than adapting to new tools, and more employees report that work is harming their health. At the same time, organisations are operating with less space, as offices struggle to justify their role. Together, these signals point to a issue: the current model of work is becoming harder to sustain as expectations rise faster than the systems designed to support them.
Managers lose their engagement advantage
New data from Gallup shows manager engagement has fallen to 22%, down nine points since 2022, erasing what was once an ‘engagement premium’ over individual contributors. The steepest drop occurred between 2024 and 2025, signalling growing strain in managerial roles as expectations expand without equivalent support. As organisations rely on managers to translate strategy into day-to-day performance, declining engagement at this level risks weakening the system from the middle out.
In action: As expectations grow, organisations need to reduce administrative burden, clarify priorities and invest in support structures that enable managers to lead, not just coordinate.
Older workers opt out of AI-driven change
Reporting from The Wall Street Journal suggests some older workers are choosing early retirement rather than adapting to new AI tools reshaping their roles. As expectations to learn and integrate new technologies accelerate late in careers, many are opting out instead of reskilling, citing disruption to established workflows, autonomy and professional identity.
In action: Without targeted support for experienced workers, organisations risk accelerating knowledge loss just as transformation demands it most.
Work is actively harming employee health
New research from EGYM Hussle finds that over half of UK workers say their jobs are harming their physical health, while 41% report impacts on mental health. The data points to widespread strain, from sedentary work and disrupted sleep to long-term health concerns, with UK workers reporting worse outcomes than the global average. As wellbeing becomes a deciding factor for retention but remains underdelivered in practice, the gap between workplace demands and human sustainability continues to widen.
In action: Treat wellbeing as operational, not optional. Address workload, movement and recovery as core parts of work design, not add-on benefits.
Office demand continues to contract
New data shows US office vacancy rates have reached a record 21%, up from 17% in 2020, despite ongoing return-to-office efforts. The rise reflects a deeper shift: companies are operating with less space overall, favouring smaller, higher-quality offices designed for collaboration over traditional layouts. As hybrid work stabilises and attendance patterns remain uneven, demand is no longer tied to headcount but to experience, location and flexibility, leaving large parts of the office market structurally misaligned.
In action: Shift from space provision to experience strategy. As demand contracts, value will come from how workplaces perform, not how much space they occupy.
