Disengaged Employees Cost More Than You Think…
Did you know, according to Gallup, only 33% of employees in the U.S. are engaged? That means 67% are either not engaged or actively disengaged. A disengaged employee isn’t simply someone who lacks enthusiasm for your business, your vision and their peers, but is a grave threat to the productivity in your organization. It’s easy to underestimate just how much disengaged employees could be costing your company. Indeed, disengagement could be costing your company tens of thousands of dollars per employee annually!
Sometimes people have bad days and some employees simply aren’t as productive as others. Still, there may be culture issues that increase disengagement. Strong employee development along with a strong culture of high engagement is sure to make a positive difference in your business.
A disengaged employee wastes time, money and resources. They may even be sabotaging the company’s efforts to grow while undermining others’ efforts and lead them to become passively disengaged, i.e., demotivated and ‘just showing up’, not performing anywhere near their best. Over time you realize that you have fewer engaged employees and the remaining engaged employees find themselves working harder to account for the slack, lending to the potential for increased employee dissatisfaction and turnover.
How Much Do Disengaged Employees Cost Your Company?
Gallup found that disengaged employees contribute to approximately 37 percent higher absenteeism, 18 percent lower productivity, and ultimately 15 percent lower profitability. In sum total, Gallup found that actively disengaged employees cost companies roughly 34 percent of their salaries. In today’s competitive markets, this often spells trouble.
The Bureau of Labor Statistics (BLS) reports that the median wage in the United States is currently $47,060. If a company is losing 34 percent of that salary to disengagement, that means they’re throwing away roughly $16,000 per actively disengaged employee! Ouch!!! So, in essence, if you take the salary of the disengaged employees in your company, then multiply that by (.34), you will determine the amount of money you are losing per employee.
Engaged Employees make a Huge Impact!
Gallup
concluded that American companies alone lost
a total of
$450 to $550 billion dollars due to disengaged employees. Yet, Gallup
also found that companies with high engagement enjoyed 22 percent
higher profitability, 21 percent higher productivity, and ultimately
higher earnings per share. You can bet that these companies have
deployed employee development programs and put a lot of effort into
increasing a positive culture for their employees. It’s
a fact, engaged employees are better for the bottom line.
For
more information on identifying the key drivers that motivate your
employees and create engagement, visit TheCultureExperts.com today!