The High Cost of Low Engagement

Increasing employee engagement and performance are top of mind issues for business leaders.

  1. Do you know the cost of low engagement on your bottom line?
  2. What would you do differently if you did?

Low Engagement Scenario:

  • There are 100 people in the organization with an average annual salary of $50,000 = 5,000,000
  • Employees are at some level demotivated, but still competent – 40% demotivated
    • (Gallup average disengagement level in North America is between 65-70%)
  • This means they are operating at a level of performance – 60%
  • Operating loss of = $5,000,000 x .40 = (2,000,000)

Note: This loss does not count the cost of lost customers/clients because of dealing with one of these employees.

Demotivated and disengaged people do not like to be alone. They recruit others in the lunch room, company picnic… where ever there are opportunities to play the game “isn’t it awful”. Therefore if you do nothing the number of disengaged employees and costs will increase even more.

Demotivated employees usual stay for a minimum of 6 months or more.

How long do you want them to stay?

Have you considered what it really means to be engaged?

The new business paradigm of the 21st century has put more attention on culture, how things are done, decisions are made, and the work environment. Times have changed and with these changes management styles and leadership must understand and respond to what employees are looking for.  There are three key elements that will increase engagement.

Employees want to:

  1. Understand what they are responsible for;
  2. Be committed to the goals;
  3. Excited about where the company is going and helping it get there.

Why do Employees Become Disengaged?

  1. “Lack of energy” – they are not well-matched for the job, want to make decisions and not being allowed to
  2. “Lack of endorsement” – they do not feel valued, supported or included in the organization by their superior (recognition)
  3. “Inability to adapt to change” – they do not understand what is expected of them. The change strategy does not include training to support development of new desired behaviours.

To Shift Engagement

What would it be worth to your organization if you could measure your level of de-motivation and create a true atmosphere of full engagement that meets your corporate initiatives for growth? Check out the RESOURCES tab and download Improving Your Business Through Values to learn more about mapping and measuring your culture.

Does this interest you?

In our scenario with 100 people and 40% level disengagement, you are CONSERVATIVELY spending a minimum of $2,000,000 a year on demotivated employees.

Let’s SHIFT the perspective to what can be done cost effectively. If you were able to move your employees and increase engagement by only 10%, you would gain $200,000 to your bottom line.

Is this doable for you?

The way forward is changing what you value and associated behaviours. Change behaviours and you change business results.

The gains:

  • New ways of working with staff
  • Pinpointing exactly what is needed
  • More business focus and results orientation
  • Creating a positive “want to” íattitude toward tasks

The changes:

  1. New leadership behaviours to change the culture
  2. New employee behaviours indicating shifts in culture
  3. Improved business results

Be sure to visit our Resource Center for valuable leadership development resources

Our E-learning Seminar – Building Your High Performing Workplace.

To find out what your personal values are that empower you to higher performance and productivity, take a Free Personal Values Assessment.

To learn how well aligned you are with the culture in your organization contact us for an – Individual Values Assessment

To learn how to map, measure and manage the culture of your team or organization with our Culture Value Assessment for Teams and Organizations.

Leadership Speaker Joanna Barclay (2)Leadership Speaker Joanna Barclay (2)Leadership Speaker Joanna Barclay (2)Contact Us Joanna BarclayJoanna Barclay, Speaker, Author, Leadership Consultant building high performing values-driven organizational culture.

With 30 years in business transformation working with organizations, Joanna’s passion lies in working with leaders, facilitating active participation in organizational change, developing resourceful teams and aligning strategic objectives. Her goal is to help organizations become high performing and values-driven, where people take ownership, build commitment and bridge communication gaps. As CEO of the Culture Leadership Group, she ensures successful transformation from concept through to implementation.