Manager disengagement threatens Southeast Asia’s workforce productivity

Southeast Asia has the second highest percentage of engaged employees.

Southeast Asia continues to show strong signs of employee engagement, low stress levels, and positive job perceptions, according to Gallup’s 2025 report. However, leadership challenges could threaten this momentum if not addressed.

The region ranks among the top globally, tying for the second highest percentage of engaged employees, the second lowest percentage of employees experiencing daily stress, and the second highest percentage of workers who believe it is a good time to find a job where they live.

Kanika Singh, Regional Director at Gallup, said engagement trends across Southeast Asia vary by country. "Specifically, Philippines, Thailand and Malaysia have seen a big jump in the engagement levels and are contributing to pushing the region upwards, whereas Vietnam has actually seen one of the biggest drops in engagement, along with downward shifts in Cambodia, Myanmar and Laos as well," she said.

While some markets are gaining ground, Gallup's research shows that lower manager engagement poses a major risk to sustaining employee engagement across the region.

"Globally, our analysis of employee engagement actually reveals that 70% of the variance and engagement of a team comes from the manager," Singh said. "So imagine if the managers are less engaged themselves. It's bound to have a cascading effect on the team, and then they're in on the productivity of the business and the economy."

Singh further warned that disengaged leadership could have broader economic consequences. "If manager engagement continues to decline, it won't stop with the managers. It won't stop with the engagement of the people. Actually, the productivity of an economy is at risk," she said.

Addressing this issue requires deliberate investment in leadership development. Singh emphasised that employees thrive when they experience purpose, growth, and ongoing communication with caring managers.

"Policies that encourage organisations to drive more development for their managers on how to be better people, managers will definitely help move the needle on engagement," Singh said.