The Impact of a Disengaged Workforce

Engaged Employees
Great employees are engaged in their work. These individuals are self-motivated and help the organization accomplish goals. In today’s business world, organizations are working hard to retain and motivate great employees because these employees have a positive effect on the bottom line.

According to a recent study conducted by Northwestern University’s Forum for People Performance Management,

"Satisfied employees create satisfied customers, which improve the financial performance of the entire organization."

Disengaged Employees

When employees begin to disengage – or are no longer committed to their work – the bottom line suffers. Disengaged employees are discontent, negative, and undermine the work of others.

Disengaged workers exist in every organization. Below are statistics that illustrate the extent of this problem.

  • 25% of America’s workforce are employed in industries that report 100% turnover.
  • 70% of employees feel no obligation to stay with their current employer.
  • 19% of employees are very negative about their work. These employees are considered actively disengaged – also known as "out to lunch. "
  • 55% of employees are apathetic or uninterested.
  • 90% of voluntary resignations are due to feeling under appreciated.

According to The Gallup Organization, "There are 22 million disengaged employees that cost the American economy up to $350 billion per year in lost productivity, including absence, illness and other problems that result when workers are unhappy at work." However most importantly, disengaged employees cause customers to do business elsewhere.

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What Do the Best Companies Do About Disengaged Employees

Recognition programs have been proven to increase employee satisfaction, which is the key predictor of employee engagement. Organizations use recognition programs to strategically manage employees keeping them engaged at work. The recognition programs are linked to the overall business strategy and have a direct effect on the bottom line.