What the World’s Largest Workplace Study Tells Us About Remote & Hybrid Work & Leadership

The newly released State of the Global Workplace: 2026 Report by Gallup delivers another crucial snapshot of a world and workforce in transition. Employee engagement has now fallen for two consecutive years, a first in Gallup’s history, and the data makes it clear that the question for leaders is no longer about if flexible work is viable but how employers and leaders manage it.

At Grow Remote, this question sits at the core of our mission. We work with employers, policymakers, and communities to unlock the full potential of remote work. Let’s unpack Gallup’s latest findings through the lens of remote and hybrid work and explore what it means for building a more productive, competitive inclusive and teams in the future of work in Ireland.

Remote Work by the Numbers (Global 2025 Data)

Note: Work location data drawn from Gallup’s 2026 Global Insights. Life Satisfaction data shown for exclusively remote (45%) and hybrid (45%).

The Engagement Slump Deepens

Global employee engagement has now fallen to 20%, down from its 2022 peak of 23% and continuing the consecutive-year decline that began in 2024. This is the first time in Gallup’s history of measuring engagement that it has dropped two years in a row. Every region of the world saw engagement decline or stay flat; no region improved.

The financial cost of this disengagement is staggering. Last year alone, low engagement cost the global economy an estimated $10 trillion in lost productivity, equivalent to approximately 9% of global GDP.

Manager engagement has been the biggest driver of the overall decline. Since 2022, manager engagement has dropped nine percentage points, falling from 31% to just 22% in 2025. The gap between manager and individual contributor engagement, once a reliable “engagement premium”, has now effectively disappeared.

Key Insights from Gallup’s 2026 Data

1. Remote Workers Remain the Most Engaged

At a global level, exclusively remote employees continue to report the highest engagement levels of any work arrangement at 25%, with hybrid workers close behind at 24%. On-site remote-capable workers trail significantly at just 17%, the lowest of any group. This is a striking finding: employees who could work remotely but are required to be on-site are the least engaged of all.

A previous bit of work we did says that there could be up-to 350K jobs in Ireland that could be done remotely but are not! That will be a major contributing factor to Ireland’s well below average engagement score and will be costing businesses some serious employee engagement related €.

Gallup has previously reported that upto 70% of team engagement is influenced by the manager. This makes the manager crisis described above especially acute for remote and hybrid teams, where intentional leadership is not just a nice to have – it is a key competitiveness and productivity lever.

2. Hybrid and Remote Workers Report Equal Life Satisfaction

Both exclusively remote and hybrid employees report the highest life satisfaction (“thriving”) rates at 45% each. On-site remote-capable workers score noticeably lower at 32%. The pattern continues to support what we’ve seen in previous years: flexibility, whether fully remote or a blend, is consistently linked to higher overall wellbeing.

3. Remote Workers Continue to Experience Higher Stress

Fully remote and hybrid employees both report daily stress at 46%, considerably above the on-site remote-capable rate of 39%. Loneliness figures have shifted: exclusively remote workers now report 23% daily loneliness, while hybrid and on-site remote-capable workers are similar at 22%.

While these figures have moderated from the highs reported in previous years, they remain a clear signal. Remote work, even with its engagement and wellbeing advantages, requires deliberate investment in social connection and mental health. This is precisely why our programme of localised social events for remote workers across Ireland continues to grow.

In 2025, we hosted more than 250+ events across 16 counties with over 2,000 attendees. 

90%+ said they met interesting people and had fun

70%+ felt more connected to their local community

30%+ learned something new about Ireland’s remote ecosystem

Learn more about our grassroots community work supporting remote and hybrid workers across Ireland here.

4. Remote Job Market Optimism Is Falling

The 2026 report introduces a noteworthy shift: the overall improvement in global job market optimism came entirely from non-remote-capable, fully on-site workers (+2 points). Job market optimism fell for fully remote workers (-5 points) and dropped sharply for remote-capable, on-site workers (-14 points). Hybrid workers remained flat.

Gallup suggests this may reflect a real or perceived narrowing of remote job availability as employers tighten return-to-office policies. For the remote work community, this is a trend worth watching closely, and a signal to employers that flexibility is increasingly valued as a deciding factor when workers weigh up their options.

Here in Ireland our Policy & advocacy work is seeking to address this and our 2025 Pre Budget submission has proposed that Ireland set a national target for remote jobs and more supports for employers who are struggling to transition to remote or hybrid operating models. This will increase the supply of remote jobs and reduce the amount of return to office mandates that influence job market optimisim.

2025 vs 2026: What Has Changed for Remote and Hybrid Workers?

Gallup’s 2026 report allows us to track meaningful year-on-year shifts for remote and hybrid workers. The picture is more nuanced than it might first appear.

Year-on-Year Comparison: Remote and Hybrid Workers (Global)

2025 Report = data collected in 2024. 2026 Report = data collected in 2025.

Remote engagement fell, but so did everyone else’s

Exclusively remote worker engagement dropped from 31% to 25% year on year, a six-point decline. That sounds significant, but it needs context. Hybrid engagement fell only marginally (23% to 24% is actually a slight rise), while on-site remote-capable engagement collapsed from 23% to 17%, a full six points too. The global average fell from 21% to 20%. Remote workers still lead all groups, but the gap between remote and on-site has actually narrowed, driven by a sharp deterioration for those required to be in the office despite their roles being remote-capable.

Thriving jumped sharply for remote workers

One of the most striking shifts in the 2026 data is in life satisfaction. Exclusively remote workers went from 36% thriving in 2025 to 45% in 2026, a nine-point improvement. Hybrid workers also rose, from 42% to 45%. This is a significant finding: even as engagement dipped, the overall sense of life wellbeing among remote and hybrid workers improved meaningfully. For on-site remote-capable workers, thriving actually fell from 42% to 32%, a ten-point drop. The divergence between remote/hybrid and office-required workers is growing sharper.

Loneliness among remote workers is improving

Daily loneliness reported by exclusively remote workers has fallen from 27% in the 2025 report to 23% in 2026. This is a meaningful four-point improvement, and it narrows the gap with hybrid (22%) and on-site workers (21-22%). It suggests that intentional investment in social connection, including programmes like our community events, is having a real impact over time.

Anger among remote workers is easing

Daily anger reported by exclusively remote workers dropped from 25% to 24%, a modest but consistent decline. Hybrid workers also sit slightly lower at 18% compared to 17% previously, remaining the group least likely to report daily anger. On-site remote-capable workers reported 21% anger in the 2025 data; in 2026 that figure sits at 21% also, flat.

The job market outlook has diverged sharply by work type

Perhaps the starkest year-on-year shift is in job market optimism. Fully remote workers saw a five-point fall in optimism. On-site remote-capable workers fell by a striking 14 points. The entire global improvement in job market perception was driven by on-site non-remote-capable workers (+2 points). This may reflect the real or perceived narrowing of remote job availability as employers tighten return-to-office policies, and it is a trend the remote work community needs to watch closely.

The On-Site Divide: Remote-Capable vs Not Remote-Capable

One of the most underreported stories in Gallup’s data is the stark difference between two groups of on-site workers: those whose roles could technically be done remotely but are not, and those in roles that genuinely require physical presence (healthcare, manufacturing, retail, etc.).

The 2026 data makes this divide even more striking.

Engagement: being forced on-site costs more than being unable to work remotely

On-site remote-capable workers are the least engaged of all groups globally at 17%, lower even than on-site non-remote-capable workers at 18%. The gap is small but the direction is telling: workers who know their role could be done remotely but are required to be in the office every day are slightly less engaged than colleagues in roles that have no choice. The perception of denied flexibility may matter as much as flexibility itself.

In Europe, the pattern is even more pronounced. Europe already has the lowest regional engagement in the world at just 12%. The high proportion of knowledge work roles across European economies, roles that are in principle remote-capable, makes the forced on-site dynamic particularly relevant for European employers.

Wellbeing: the thriving gap is dramatic

On-site remote-capable workers report a thriving rate of just 32%, which is 13 points below exclusively remote (45%) and hybrid workers (45%), and actually below the global average of 34%. On-site non-remote-capable workers are not separately broken out in the thriving data, but their general profile suggests a different dynamic: workers who never had the option of remote work may have different expectations and reference points. The frustration and dissatisfaction visible in the remote-capable group likely reflects a sense of what could be, rather than simply what is.

Stress: lower for on-site workers, but not uniformly

Both on-site groups report lower daily stress than remote or hybrid workers. On-site remote-capable workers report 39% daily stress versus 46% for fully remote and hybrid workers. This likely reflects the absence of the boundary-blurring, always-on dynamic that contributes to remote worker stress, but it does not translate into higher engagement or wellbeing for the remote-capable on-site group, suggesting that lower stress alone is not a driver of engagement.

Job market optimism: the sharpest signal of all

The job market data offers a particularly revealing window into how on-site remote-capable workers are feeling. Their optimism fell 14 points year on year, the largest decline of any group. This is a group that knows remote-capable roles exist, may have held or coveted them, and is watching those opportunities contract. The emotional undercurrent here is one of diminishing options rather than stable circumstances. For employers, this is a retention risk signal worth taking seriously.

In Europe specifically, job market confidence sits at 57%, above the global average of 52%, and European workers benefit from stronger labour market protections and a generally tighter talent market. As remote job availability fluctuates with shifting employer policies, European organisations that maintain genuine flexibility will have a meaningful advantage in attracting and retaining talent.

What this means for employers

The on-site divide carries a clear message for organisations. Workers in remote-capable roles who are required to be on-site are not simply the same as remote workers, just in the office. They are a distinct group with distinct engagement and wellbeing profiles. The data suggests they are among the most at-risk of disengagement and departure. Return-to-office decisions made without addressing the underlying leadership and culture issues will not resolve this. The answer is not location. It is how teams are led, regardless of where they sit.

The Real Story: Leadership Is the Lever

Gallup’s 2026 report touches on AI adoption, but the finding that matters most for remote and hybrid organisations is not about technology at all. It is about managers. Gallup has previously reported that 70% of team engagement is attributable to the direct manager, and in organisations where managers actively champion new ways of working, teams perform measurably better on every metric that counts.

This is not a new finding, but the 2026 data sharpens it. Manager engagement has fallen nine points since 2022, hitting 22% globally. Managers are increasingly squeezed, expected to drive performance and culture while navigating distributed teams, shifting policies, and evolving employee expectations. They need better support, not just more pressure.

Manager Development: Still a Missed Opportunity

Gallup’s multi-year findings paint a consistent picture: managers of remote and hybrid teams are under-supported, under-trained, and increasingly under pressure. The largest single-year drop in manager engagement on record occurred between 2024 and 2025, a five-point fall to 22%. Managers are now only as engaged as the people they lead, having lost the engagement premium they once held.

The good news is that this is not inevitable. Gallup’s data shows that within best-practice organisations, 79% of managers are engaged, nearly four times the global average. These organisations prioritise manager development as a strategic investment, not an afterthought. The difference is not the type of work or the location. It is the quality of leadership and the support structures around it.

Gallup’s previous research reinforces this directly: management performance metrics improved by 20% to 28% in organisations where managers received best-practice training. Even basic training showed meaningful benefits. The return on investment is clear, and the cost of inaction is visible in the engagement figures above.

What Employers Must Prioritise

Gallup’s 2026 findings point to a clear set of priorities for any organisation with remote or hybrid workers:

• Invest in manager training, the single highest-leverage action an organisation can take. Managers of distributed teams need specific skills: how to build connection at a distance, how to coach without proximity, how to sustain culture and performance across locations.
  
• Foster intentional connection. Remote and hybrid employees still experience elevated stress and loneliness. Social design within distributed work is not a nice-to-have; it is a performance driver.
  
• Rethink flexibility policies with care. The data is unambiguous. Workers in remote-capable roles who are required to be on-site are the least engaged of any group. Return-to-office decisions made without addressing the underlying engagement and leadership issues will not solve the problem.
  
• Redefine the role of the manager. Not as an enforcer of attendance or a monitor of output, but as a coach, connector, and culture carrier for their team, wherever that team sits.

Remote & hybrid work is not the future of work. It is 30%+ of the Irish labour force today. The organisations that will lead are those that invest in the human infrastructure around it: the managers, the connections, and the culture that make distributed teams thrive.

Ireland: A Wake-Up Call in the Data

Gallup publishes country-level data alongside the global report, and the Ireland figures deserve particular attention from anyone working in or with Irish organisations.

Source: Gallup State of the Global Workplace 2026, Ireland Country-Level Data. Three-year rolling averages ending 2025.

Only 9% of Irish workers are engaged

Ireland’s employee engagement sits at just 9%, less than half the global average of 20% and below even the already-low European average of 12%. This figure has been stuck in single digits or just above since 2018, with no meaningful recovery. Despite Ireland’s strong economy, tight labour market, and high concentration of knowledge-work roles, exactly the kinds of jobs most suited to remote and hybrid arrangements, and the engagement picture is deeply concerning.

The global data is clear that remote and hybrid workers consistently outperform their on-site counterparts on engagement. Ireland has a significant proportion of knowledge workers in roles that are, in principle, remote-capable. The question for Irish employers is not whether flexibility could help. The global data strongly suggests it can. The real question is whether they are creating the leadership and culture conditions that make it work.

High wellbeing, low engagement: a paradox with a risk

Irish workers report strong life satisfaction, with 49% thriving, matching the European average and well above the global figure of 34%. But this sits alongside the 9% engagement rate, creating a striking paradox: Irish workers feel good about their lives, they just do not feel good about their jobs.

This combination is a retention risk. Ireland also has one of the strongest job market confidence scores in Europe at 62%, above the European average of 57% and well above the global average of 52%. Workers who are disengaged at work, satisfied with life more broadly, and confident they could find another job are exactly the workers most likely to leave. For Irish employers, that is a pressing challenge.

Stress is rising and loneliness is above the European average

Irish daily stress jumped 3 points to 42%, now above the European average of 39% and the global average of 40%, reversing several years of gradual improvement. This rise is a signal that Irish workers are under increasing pressure, reinforcing the need for managers who can recognise and respond to the emotional load their teams are carrying.

Ireland also reports daily loneliness at 17%, notably higher than the European average of 13%. Given the prevalence of remote and hybrid working across Irish knowledge sectors, this is both a direct challenge and a direct opportunity. We know from Grow Remote’s own work that localised social connection makes a measurable difference. In 2024 we hosted more than 300 meetups for almost 2,500 remote workers across Ireland, with 4 out of 5 attendees saying they met interesting people and had fun. Loneliness among remote workers is not inevitable, but it requires deliberate investment to address.

The opportunity for Ireland

Ireland cannot draw on country-level remote work breakdowns from Gallup. That data does not exist at country level. The global evidence is consistent: remote and hybrid workers engage more, thrive more, and when supported well, perform better. Ireland has the workforce profile, the infrastructure, and the appetite to be a world leader in distributed work. What the data tells us is that leadership quality is the missing piece. Closing the gap between Ireland’s 9% engagement and the global best-practice benchmark of 79% among well-managed teams is not a technology problem or a location problem. A key part of it is a leadership problem, and it is entirely solvable.

Lead From Anywhere with Grow Remote

Our 2026 “Lead From Anywhere” training programme is built directly for this challenge. Designed for managers and team leaders of remote and hybrid teams, it equips leaders with the practical skills to build engagement, connection, and performance across distributed work environments, drawing on the very best management science and the real-world experience of Ireland’s leading remote work organisation.

If Gallup’s data tells us one thing above all, it is this: the difference between a thriving distributed team and a disengaged one comes down to leadership. That is a skill that can be developed. And the time to invest in it is now.

Fully funded training is available through the LOTEB scheme for qualifying employers in Ireland. Find out more and register your interest for the next available group here.

You can also book a direct call with Ciara in our Employer Services team to find out more about the training for your wider leadership team (we accept multiple individuals from the same employer) – just book a time that suits you best here.

About Grow Remote. Our mission is to solve the problems of remote work in order to unlock social, economic and environmental change for individuals, employers and local communities. www.growremote.ie

Source: Gallup

Featured Image: Photo by Corinne Kutz on Unsplash