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PACE NEWS

Bridging the divide – why the people issues matter

May 29, 2025

A persistent divide exists across the UK workforce, one that significantly impacts employee wellbeing, performance, and overall attitudes toward work.

While early signs of improvement in engagement levels are encouraging, there remains a concerning lack of consistency in people management practices across the UK. This inconsistency is having a material (and potentially detrimental) effect on the quality of work experiences, organisational performance, and overall employee wellbeing.

Now in its third year, the Engage for Success (EFS) annual engagement survey of the UK working population reveals stark variations in engagement levels. Findings show that two in five employees work in organisations where neither senior leaders nor line managers sufficiently prioritise people issues. In contrast, two in five employees work in organisations where both leadership and management do sufficiently prioritise these issues.

While the concept of contrasting managerial styles is not new, the findings highlight the significant and concerning impact these opposing approaches can have on employees, particularly in terms of their engagement, wellbeing, and attitudes toward work. There is a 32% difference in engagement levels between employees in organisations that prioritise the people issues and those that do not. Employees in organisations that embed the people issues in their strategic and day-to-day decisions have an average engagement level of 77%. This contrasts with employees who perceive that neither their line managers nor senior leaders prioritise people issues, reporting engagement levels of just 45%.

The impact extends beyond engagement, shaping workplace experiences and influencing attitudes toward work. Employees in organisations that prioritise people issues are more likely to express a strong intention to stay, demonstrate a greater willingness to support colleagues, contribute higher levels of discretionary effort, and actively propose innovative ideas.

Survey data also reveals a strong line between autonomy and engagement. Employees who report having control over their work processes – from organising daily tasks to setting the pace of their work – experience significantly higher levels of engagement. Employees who felt they had autonomy over how they organised their work reported 24% higher engagement compared to those who did not feel the same. Those who believed they could influence decision-making processes within their organisation reported 32% higher engagement. Worryingly, although survey findings show a clear connection between autonomy and engagement, research indicates that autonomy and decision-making are in decline due to advances in technology.

Prioritising people issues also has a significant impact on employee wellbeing. Survey results show that unmanageable job stress is five times higher in organisations that do not prioritise their people, reinforcing a systematic risk to organisational health and sustainability. Added to this, levels of presenteeism are significantly higher in these organisations. Not only are employees working in these organisations experiencing lower engagement – 20% lower than the national average – but they are more likely to view their job merely as a way to earn money, find less intrinsic satisfaction, and be at a higher risk of not just leaving their current employer, but the workforce entirely. In contrast, employees in organisations that prioritise people issues find greater enjoyment in their roles, are more likely to remain engaged even if financial need is removed, and experience a stronger sense of purpose in their work.

Poor managerial practices can trigger a deeper disconnect from work, exacerbate health inequalities, and increase the risk of economic inactivity. This raises a critical question: Are poor management practices actively depleting our UK workforce?

It’s important to clarify that the question focuses on management practices, not the managers themselves. While line managers have a direct influence on employee engagement, they are also facing significant challenges themselves. Increasingly, line managers are being given more managerial responsibilities, whilst still being expected to meet their core operational responsibilities. This is creating concerning patterns of unmanageable job stress, discrimination, and bullying, particularly among those with protected characteristics or long-term health conditions.

Two-thirds of managers reported facing unreasonable deadlines and feeling that their opinions were ignored. Most concerningly, half of the managers said they had remained silent about work-related concerns due to fear of negative consequences, and two-thirds felt that nothing would change if they did speak up.

When line managers are engaged, it has a positive impact on team engagement. Yet, when line managers are struggling, it has a ripple effect on employee wellbeing and organisational outcomes. Competing priorities and growing workloads often leave little time for effective people management. While they are expected to manage their teams, they are frequently not given the necessary time, resources, or training to do so effectively. Survey findings highlight this issue, with only one-third of managers reporting that team engagement is included in their performance appraisals. The lack of accountability sends a clear message that engagement is considered a secondary concern, a ‘nice to have’, not a strategic priority. Even well-intentioned and motivated line managers may prioritise immediate operational demands over longer-term engagement efforts – especially when under pressure.

The divide in how people issues are managed across UK organisations is a significant concern, with far-reaching implications for employee engagement, wellbeing, performance, and attitudes to work. For businesses to thrive in today’s landscape, senior leaders need to recognise the strategic importance of people management and give it the same level of priority as other strategic concerns. The role of line managers is critical, as they are the ones who directly influence the work environment and employee engagement. To ensure line managers can succeed, they need adequate support, resources, and training. Prioritising people issues is not just a moral imperative – it is a strategic necessity for ensuring long-term organisational success, resilience, and employee retention. Only by addressing this divide can we create a workforce that is not just in work, but is motivated, engaged, and empowered to contribute.

Dr Sarah Pass, Senior Lecturer HRM, Nottingham Trent University

May 2025

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