The Manager’s Role in Employee Engagement in 2025

A manager’s influence accounts for 70% of the variance in employee engagement scores across business units. This isn’t just another statistic to overlook. The reality is stark: only 20% of employees worldwide report feeling truly engaged at work. Disengaged employees cost U.S. companies an estimated $550 billion every year.

What’s more, 57% of employees say they’ve left a job because of their manager. Managers clearly play a pivotal role in solving this costly problem.

So, what sets great managers apart—those who inspire engagement and loyalty—from those who drive people away? And how can you become the kind of leader who builds a highly engaged, productive team?

This blog breaks down proven strategies, common pitfalls, and practical tools to help you boost employee engagement in 2025 and beyond.

Why Managers Are the Key to Employee Engagement

Research shows that direct managers shape your daily work experience more than anything else. Gallup's complete analysis over two decades reveals managers account for at least 70% of the variance in employee engagement scores across business units. This finding stands as the most profound insight in workplace research.

The 70% engagement variance explained

The 70% statistic tells a powerful story about workplace dynamics. Gallup's largest longitudinal study of over 27 million employees and 2.5 million work units shows team engagement shifts based on who leads the team. The numbers paint a clear picture: only 30% of U.S. employees feel engaged at work, while just 13% feel engaged globally. These numbers have barely moved in the last 12 years.

What is the manager's role in employee engagement?

Managers create an environment that helps or hurts engagement through daily interactions. They drive engagement by:

• Setting clear expectations and goals (down 10 points since 2020)
• Recognizing contributions and providing meaningful feedback
• Creating opportunities for growth and development
• Connecting individual work to the company's larger purpose
• Building trust through consistent communication

Managers interact with employees almost daily and bridge the gap between leadership and frontline workers, which gives them exceptional influence.

Why HR alone can't drive engagement

HR teams design great engagement strategies, but need manager support to implement them. Employee engagement isn't "a thing that the HR department keeps in a drawer and dusts off once a year to upset everybody". The people who want engagement benefits must take ownership of it.

Employees trust their immediate managers much more than senior leadership. HR sets the vision for workplace culture, and managers bring that vision to life through daily team interactions.

Managers need both authority and support to succeed with engagement initiatives. Many struggle with competing priorities, unclear expectations, and a lack of proper training in engagement techniques. The answer lies in a stronger partnership between HR and managers. HR provides tools and resources while managers adapt these strategies to their teams.

What Great Managers Do to Engage Employees

Successful managers excel at specific strategies that improve team involvement and output. These six core practices will change your management style and help your team succeed.

1. Clear, Consistent Communication

Great managers don’t leave people guessing. They share goals, updates, and feedback in plain language. According to a 2023 SHRM survey, 71% of employees say leaders don’t communicate enough about goals. Regular check-ins build trust and keep teams aligned. Adapt your style for remote and in-office staff. Use video calls, chat, or quick phone check-ins—whatever works best for each person.

2. Real-Time Recognition

Recognition is a game-changer. A 2022 Workhuman study found that 94% of employees who feel recognized love their jobs. Only 18% of unrecognized workers say the same. Don’t wait for annual reviews—shout out wins as they happen. Make it personal and specific.

How to do it right:

• Praise in public, correct in private.
• Use Slack channels, emails, or handwritten notes.
• Celebrate both team and individual wins.

Want to make this even easier? Try ThriveSparrow’s Kudos feature. With just a few clicks, you can send instant recognition to anyone on your team—no matter where they are. It’s quick, fun, and helps build a culture where everyone feels valued.

Moreover, ThriveSparrow's integration for Slack makes collaboration easier. A shared Slack channel facilitates the exchange of Kudos cards, allowing employees to both give and receive recognition points.

Data to remember:
Canva’s 2023 research shows 75% of employees want more appreciation at work.

3. Set Crystal-Clear Goals

Only 44% of employees know what’s expected of them at work (Gallup, 2024). That’s a recipe for frustration. Use the SMART framework (Specific, Measurable, Achievable, Relevant, Time-bound) for every goal. Spell out what success looks like.

4. Support—Don’t Smother

Managers should guide, not micromanage. Gallup research shows that employees who feel their manager helps them set work priorities and goals are over 3 times more likely to be engaged at work (Gallup, 2023). Define the outcome, offer help when needed, and then step back. Adjust your approach to fit each person’s skills and experience.

5. Connect Work to the Big Picture

People want to know their work matters. According to Gallup, only 40% of employees say they clearly understand their company’s goals and how their work connects to them (Gallup, 2023). This lack of clarity can hold teams back. Break down company goals into team and individual targets. Show how each task moves the company forward. When employees see the impact of their work, motivation and performance rise.

6. Act on Feedback—Fast

Nothing kills engagement like ignored feedback. Get input through surveys, one-on-ones, or anonymous forms. But don’t stop there—share what you heard and what you’re doing about it. Keep the loop going and close the feedback loop.

Want a smoother way to do this? ThriveSparrow makes it simple to gather feedback through surveys in less than a minute and show your team their voices matter. With easy-to-use AI-powered sentiment analysis, you can spot issues right away and address them quickly. When employees see their suggestions lead to real change, trust and engagement grow.

Avoiding the Pitfalls: What Not to Do as a Manager

Talented managers can unknowingly hurt their team's engagement through common mistakes. Teams perform better when managers understand these pitfalls and avoid behaviors that push talent away.

1. Stop Micromanaging—Trust Your Team

Micromanagement quietly damages teams. When managers control every detail, employees feel untrusted and less connected to their work. Research shows micromanagement lowers emotional engagement and weakens an employee’s sense of belonging. It can also drive away top talent while keeping average performers, stifle creativity, and leave teams stuck in survival mode.

High turnover is a major cost. Replacing an employee can cost up to twice their annual salary. This constant churn disrupts teams and drains resources.

2. Listen to Feedback—Don’t Ignore Employee Voices

Ignoring employee feedback leads to lower morale, trust, and engagement. When employees feel unheard, they stop sharing insights, and companies miss out on valuable information. This can leave organizations blindsided by problems that could have been prevented.

Poor feedback practices also hit the bottom line. Miscommunication and ignored feedback cost U.S. businesses billions each year in lost productivity and efficiency.

3. Treat Everyone Fairly—Avoid Favoritism

Favoritism is more common than most managers realize. Nearly 90% of employees have seen favoritism at work, and one in ten have quit because of it. When leaders play favorites, trust in management drops and resentment grows. Team cohesion takes a hit, and turnover rises as employees look for fairer workplaces.

4. Communicate Clearly—Don’t Leave Teams in the Dark

Poor communication is a silent killer of engagement. Only 44% of U.S. employees say they strongly understand their job requirements—a drop from ten years ago. When expectations aren’t clear, employees feel lost and disconnected from company goals.

Miscommunication costs companies millions each year. It leads to lost productivity, higher turnover, and a toxic work culture.

5. Manage Stress—Don’t Ignore Burnout

Burnout is at a crisis level. In 2025, 82% of employees report feeling at risk of burnout. Chronic stress leads to higher turnover, with companies losing top talent and spending big on replacement costs. Burnout now costs businesses $322 billion each year in lost productivity, and health-related costs can reach $190 billion annually [Source: worktime].

Managers who avoid these pitfalls—micromanagement, ignoring feedback, favoritism, poor communication, and unmanaged stress—create teams that are more engaged, loyal, and productive.

Tools and Strategies to Help Managers Succeed in 2025

Technology has changed how managers connect with their teams in 2025. Nearly half of executives say traditional performance management doesn't work. The right digital tools now separate successful teams from struggling ones.

Employee Recognition Platforms

Recognition at work should be more than a quick “thanks”—it’s about creating memorable moments that truly make people feel seen. Imagine finishing a tough project and getting a personalized shoutout from your manager right on your company’s recognition platform. That’s the kind of appreciation that sticks.

Modern recognition tools let managers and peers celebrate wins in ways that feel genuine and meaningful. It’s not just about saying “good job”—it’s about showing appreciation in public, making it part of your culture. Platforms like ThriveSparrow,Spot-Award and Vantage Rewards help make recognition a regular, energizing habit, turning appreciation into a core part of everyday work life.

Employee Engagement Survey Platforms

Curious about what your team really thinks? Just ask. Engagement survey tools make it easy to collect honest feedback in minutes. For example, you can send out a quick pulse survey to check in on work-life balance or overall satisfaction. Anonymous, real-time responses help you spot trends and act before small issues become big problems.

Performance Management Software

Keeping track of team performance while juggling deadlines can feel overwhelming. Performance management tools help you set clear goals, track progress, and schedule one-on-one check-ins that actually matter. Tools like BambooHR and Lattice make it easy to align everyone on objectives, keep motivation high, and ensure no one falls through the cracks.

Communication and Collaboration Tools

Good communication keeps teams strong. Platforms like Microsoft Teams and Slack make it simple to share updates, brainstorm, and stay connected—whether your team is remote or in the office. These tools keep everyone on the same page and make collaboration seamless.

Training and Development Resources

Great managers never stop learning. Platforms like LinkedIn Learning, Coursera, and Udemy offer courses on leadership, communication, and building engaged teams. Prefer a good book? “The Five Dysfunctions of a Team” by Patrick Lencioni and “Leaders Eat Last” by Simon Sinek are packed with practical advice for building trust and tackling tough team challenges.

If you want to build a team that’s motivated, loyal, and high-performing, you need the right tools and strategies. ThriveSparrow brings everything together with real-time feedback, AI-powered analytics, and seamless recognition—all in one easy-to-use platform. Don’t let engagement slip through the cracks.

Try ThriveSparrow today and see how simple it is to create a culture where everyone feels valued, heard, and ready to do their best work.

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FAQs

Q1. What role do managers play in employee engagement?

Managers are crucial to employee engagement, accounting for 70% of the variance in engagement scores across business units. They shape the daily work experience more than any other factor, influencing everything from goal-setting to recognition and team alignment with company vision.

Q2. How can managers effectively communicate with their team?

Effective managers use open, direct, and respectful communication. They hold regular check-ins, vary their approach based on individual needs, and ensure clarity in expectations. This builds trust and helps employees understand their role within the larger organizational context.

Q3. What are some common pitfalls managers should avoid?

Managers should avoid micromanagement, ignoring employee feedback, showing favoritism, poor communication, and allowing unmanaged stress to lead to burnout. These behaviors can significantly decrease team morale, productivity, and ultimately lead to higher turnover rates.

Q4. How can technology help managers improve employee engagement?

Modern tools like ThriveSparrow offer comprehensive platforms for measuring engagement, gathering feedback, and creating action plans. Other useful technologies include recognition software, performance management systems, and coaching frameworks that provide practical ways to boost engagement daily.

Q5. What are some key strategies for managers to increase employee engagement?

Key strategies include setting clear goals and expectations, recognizing and rewarding contributions, providing support without micromanaging, aligning the team with the company vision, and acting on employee feedback. Consistently implementing these practices can transform team engagement and productivity.