The Importance of Engagement and the Cost of Disengagement
Engaged employees enjoy being at work.
Engaged employees are productive.
Engaged employees are emotionally invested in and focused on creating value for their organizations every day.
The Extent of Engagement in Canada
- 16% are engaged in their jobs
- 70% are not engaged
- 14% are actively disengaged: actively disengaged employees are negative and potentially hostile to their organization.
(Gallup Report: State of the Global Workplace, 2013)
That means that 86% of employees are not engaged in their work.
The Cost of Disengagement
In study after study, frustration, burnout, disillusionment, and misalignment with personal values are cited amongst the biggest reasons for career change. (Harvard Business Review, January–February, 2015)
Disengaged workers cost the US economy $450-550 billion dollars a year.
Signs of disengagement:
- Unresolved workplace conflict
- Stress-related illnesses
- High absenteeism
- Low morale
- High staff turnover
- Workplace grievances
- Low productivity
- Gossip and hurtful rumours
- High on-the-job accidents
The value of engaged employees
- Perform 20% better than disengaged counterparts (SHRM, 2007 Research Quarterly)
- Are 87% less likely to leave the organization than the disengaged (Gallup 2013)
- Come up with more innovative ideas
- Create the most new business
- Have the most entrepreneurial energy
- Have 50% fewer accidents (Gallup 2013)
- Have 41% quality defects (Gallup 2013)
- Infer far less health care costs than their counterparts
- Are happy and loyal
The financial gain of engagement
Companies with highly engaged employees:
- experienced a 19.2% improvement in operating income from previous year (Towers Perrin-ISR, 2006, The ISR Employee Engagement Report)
- have an average 147% higher earnings per share (EPS) than the norm (Gallup 2013)
- have 31% higher productivity (Harvard Business Review, January 2012)
- have 37% higher sales (Harvard Business Review, January 2012)
Building healthier, more engaged workplaces is essential to creativity, innovation, collaboration, team-building, increased productivity and job satisfaction—not to mention cost savings.
In the new global economy, people are your competitive edge.
Do you want to a more engaged workplace? Contact us.