Good Work Index 2025 report makes case for investment in line managers, employee wellbeing and AI

New CIPD data, published today, provides compelling evidence for the impact that management capability, employee health and AI automation have on reported outcomes such as performance, discretionary effort and intention to quit. 
 
The CIPD Good Work Index examines aspects of job quality to provide evidence for where employers should focus their efforts to improve outcomes for their organisation and their employees.  

Now in its eighth year, our research provides employers and people professionals with data-driven insights into the key factors that define effective work environments – and how these impact performance, retention and organisational success. 

Management capability is improving - and making a difference 

The 2025 report shows some progress in how employees perceive their line managers. Compared with 2023, more respondents report support from managers, particularly in areas such as encouraging learning and development and openness around issues like mental health. 

And the data shows that these improvements matter - employees with more positive views of their line managers were: 

• more likely to feel competent and effective in their roles 

• less likely to say their job has a negative impact on their health 

• less inclined to consider leaving their organisation. 

This progress aligns with more managers reporting that they now have the time, training and know-how to manage people well - highlighting the value of sustained investment in management capability.  

Continuing to invest in line manager capability, with a focus on supportive people management can help to improve line manager and direct report relationships further. The CIPD offers practical exercises and resources to help managers develop their management approach and better support their teams. Our Effective People Managers evidence review shows a strong link between capable, empowered managers and improved outcomes - such as higher employee wellbeing, greater commitment and innovation, and reduced absenteeism. 

Wellbeing remains a critical driver of performance 

Mental health continues to play a pivotal role in shaping how people behave at work. The survey found that employees who say work has a positive impact on their mental wellbeing are: 

• more likely to recommend their employer  

• more likely to go the extra mile  

• more likely to share innovative ideas.  

These findings reinforce the importance of designing jobs and working environments that support employee mental health. When work supports wellbeing, sufficient autonomy and engagement, people are better able to contribute, collaborate and innovate. 
 
Creating roles and workplaces that promote mental wellbeing can drive positive outcomes for both people and business. The CIPD’s Health and wellbeing at work survey report highlights key recommendations for employers and people professionals, complemented by our practical guidance and ready-to-use resources. 

AI automation shows early signs of positive impact 

The research also explores how (artificial intelligence) AI is being used in the workplace, with 16% of employees reporting that tasks have been automated using AI, typically repetitive tasks. While adoption remains limited, its impact has been hugely positive: 

• 85% of those whose tasks have been automated say it has improved their performance 

• these individuals are more likely to be satisfied with their job and to experience positive effects of work on their mental health. 

This suggests that, when used responsibly, AI has the potential to enhance job quality, particularly when it frees up time for more meaningful work. 
 
In light of these findings, we’re encouraging employers to recognise the potential of technology and automation to improve job quality, when implemented ethically and transparently. Our guide  – How to choose the right technology for your business – provides a framework for those actions.