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Perspectives for People Leaders

Manager Burnout Is Damaging Team Performance. How to Reboot Alignment, Agility, and Engagement in the Future Of Work

MAY 13, 2026   |   Lisa Dunbar, CEO

The daily routine of today’s manager follows a familiar rhythm.

It starts with tackling their inbox. By mid-morning, a new strategic priority is announced that quietly contradicts last quarter’s focus. Shortly after, a team member asks for a private conversation about burnout. Then another message arrives that a deadline needs to be bumped up, even though the team is already short-staffed.

This is the reality of management today: translating shifting priorities, holding emotional conversations, and carrying uncertainty while keeping work moving. 

On their own, these moments feel manageable. In combination, they become something heavier. And not for the reasons people tend to think.

Managers aren’t burning out because there’s more work on their plates. They’re struggling because the role has evolved faster than the infrastructure meant to support it. Today’s managers are expected to be strategists, coaches, communicators, and emotional anchors—often without ever being prepared for these responsibilities. That gap matters because managers have an outsized influence on how teams perform and how engaged people feel at work.

Research from Gallup captures this strain. Global employee engagement fell to 21% in 2024, down from 23% the year before, while manager engagement dropped even more sharply, from 30% to 27%1, the largest decline of any employee group.

The data makes it clear: the traditional manager operating system is not working as intended. What the numbers alone don’t explain is why.

What’s broken: the cost of collapsing manager engagement in the workplace

Workplace engagement rarely collapses overnight. It erodes gradually in the conversations that don’t happen, the ideas that stay unspoken, and the teams that begin doing the minimum instead of the possible.

At its core, engagement is simple: it’s the energy and attention people bring to their work. When engagement drops, effort becomes transactional. Tasks get completed, but initiative and creativity thin out. The shift is subtle, but the cost compounds quickly—showing up in slower decision-making, reduced innovation, and performance that plateaus instead of advances. Over time, the impact is felt across the organization.

At the centre of that ripple effect are managers. Gallup estimates they influence roughly 70% of the variance in team engagement2, not because they create it alone, but because their daily behaviours inform the environment. Setting expectations, building trust, responding under pressure, and connecting people to purpose all influence how work gets done.

Stress is often the hidden driver. Under pressure, leadership range narrows. Communication shortens. Patience fades. Some managers over-control; others withdraw. Deliverables take priority over relationships. These are human responses, but over time, they weaken trust. The warning signs are small: fewer questions, fewer challenges, safer ideas. Innovation rarely stops outright—it simply loses momentum.

The encouraging news? This is fixable. Managers who receive targeted development show measurable gains:

  • 10%–22% higher manager engagement
  • 8%–18% higher team engagement
  • 21%–28% lower turnover
  • 20%–28% greater likelihood of performance improvement3
 

Managers don’t need more responsibility. They need a better foundation—especially the human skills that keep them steady, clear, and effective under strain.

Disengaged managers drain performance. Engaged managers restore it.

The data is clear: employee engagement drives meaningful business outcomes. A meta-analysis of over 700 studies, covering 180,000 business and work units and more than 3 million employees, found that teams in the top quartile of engagement had:

  • 14% higher productivity than the bottom quartile
  • 23% higher profitability than the bottom quartile
  • 51% lower turnover than the bottom quartile4
 

The opportunity is huge—and measurable. But to realize it, managers need more than technical skills or processes; they need a fresh approach to leadership.

This is the catalyst for the Modern Manager framework, backed by the Reflect, Connect, Lead (RCL) framework to address the real challenges managers face and provide a guidepost for leading with intent and impact. To understand the need for Modern Manager behaviors, it helps to contrast them with what we call the 1.0 Manager.

The 1.0 Manager is often driven by what’s happening around them—reacting to events, metrics, or pressures from above. The Modern Manager starts from within, cultivating self-awareness that becomes a real advantage: protecting capacity, staying grounded when demands are high, and creating space for others to contribute at their best. Here’s what it looks like. 

Reflect

Reflection is the habit that turns reaction into intention and the first mindset from the 1.0 Manager to the Modern one. Managers who reflect are self-aware; they understand how they tend to show up in different situations, gaining the essential advantage of choice.

Think of Reflect as a pause. It’s the moment where you look at your mindset, energy, and habits before jumping into action. Modern Managers notice patterns, triggers, and strengths, responding rather than reacting. A pause can change the energy in the room: how people listen, how feedback lands, and how tension breathes.

As the quote often attributed to Viktor Frankl reminds us: “Between stimulus and response there is a space; in that space is our power to choose our response; in our response lies our growth and freedom.

Reflection creates clarity, reduces noise, and sets the foundation for stronger decisions and leadership presence.

Connect

Connection is at the heart of trust. Modern Managers don’t pretend there’s clarity in every situation or that they have all the answers. They are transparent about uncertainty, signaling to their teams: we’re navigating this together, and it’s okay to learn as we go.

By contrast, the 1.0 Manager often tries to create certainty—avoiding risk, hesitating to name challenges, or clinging to the illusion of stability. The Modern Manager expects uncertainty, experiments, learns from missteps, and talks openly about what’s happening.

Engagement lives where people feel understood, respected, and valued for what makes them different. One employee may thrive on frequent feedback; another may disengage under the same approach. When managers adapt how they connect—without lowering expectations—trust deepens, and performance becomes more sustainable.

In hybrid, fast-moving environments, connection is what carries the work forward.

Lead

Leading effectively is about alignment. Modern organizations are full of competing priorities: speed versus quality, innovation versus risk, autonomy versus consistency. When these tensions go unspoken, confusion fills the gap.

The 1.0 Manager leads by focusing on productivity, KPIs, and top-down direction. These aspects are important, but results are limited if people aren’t motivated or included.

However, the Modern Manager builds on that foundation. They name trade-offs, explain why priorities matter, and reconnect daily work to purpose and context, even when certainty is unavailable. This behavioral foundation turns goals into real outcomes. 

Alignment doesn’t make work simple. It makes it workable. 

By combining self-awareness, connection, and alignment, the RCL framework equips managers to navigate uncertainty, build trust, and drive measurable results. The opportunity isn’t theoretical—it’s in the data. Reflect. Connect. Lead. That’s how managers and their teams thrive.

How managers can leverage personality insights to drive team performance

Work is a human experience. People have different personalities, ways of thinking, and ways of working, and managers are the ones who have the greatest influence over how those differences play out in daily life. They are more than catalysts of performance; they provide the container in which people can perform at their best. Every conversation, every decision, every interaction shapes whether employees feel supported, motivated, and engaged.

Engagement comes down to basic psychological needs. People need autonomy to make decisions about how they work, belonging so they feel connected to their team, competence so they know their skills make a difference, and dignity so they feel respected and valued. 

Meeting these needs consistently is not automatic; it depends on how managers show up, especially under pressure.

Personality insights give managers a shared language to make sense of themselves and the unique traits of the people within their teams. They help managers recognize their own patterns, anticipate friction, and adapt in ways that meet the needs of others. 

When managers and their teams gain this kind of insight, everything shifts. Conversations become easier, collaboration deepens, and teams perform more effectively. Insight turns assumptions into curiosity, uncertainty into clarity, and daily interactions into trust-building opportunities.

We, the WorkPlace Big Five Profile™ Experience, was created to make this shift practical and scalable. When managers are equipped to meet these core human needs—autonomy, belonging, competence, and dignity—even high-pressure environments become sustainable. Resilience, adaptability, and trust emerge naturally, and the effects ripple across teams and the organization.

Cultivating Modern Managers is a human solution to a very human problem of disengagement. When managers are supported to succeed, the impact extends far beyond a single team, shaping the health, clarity, and performance of the entire organization.

Learn more about We here

Sources

  1. Gallup. (2025). State of the global workplace 2025. https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx
  2. Gallup. (2015, April 21). Managers account for 70% of variance in employee engagement. https://news.gallup.com/businessjournal/182792/managers-account-variance-employee-engagement.aspx
  3. Gallup. (2023, May 30). A great manager’s most important habit. https://www.gallup.com/workplace/505370/great-manager-important-habit.aspx
  4. Gallup. (2024). Gallup’s Q12® meta-analysis report (11th ed.). https://www.gallup.com/workplace/321725/gallup-q12-meta-analysis-report.aspx