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How Much Do Your Actively Disengaged Employees Cost Your Business?

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Here is a quote from Gallup’s recent report on the State of the American Workplace:

“Here’s what you need to know: Gallup research has found that the top 25% of teams — the best managed — versus the bottom 25% in any workplace — the worst managed — have nearly 50% fewer accidents and have 41% fewer quality defects.

What’s more, teams in the top 25% versus the bottom 25% incur far less in healthcare costs.
 
So having too few engaged employees means 
  • our workplaces are less safe,
  • employees have more quality defects,
  • and disengagement — which results from terrible managers — is driving up the country’s healthcare costs.”

Jim Clifton, CEO, Gallup

In addition, this recent Gallup Report estimates that active disengagement in companies costs the U.S. an estimated $450 billion to $550 billion annually. 

employee active disengagement US cost 14 KB

 How much are your actively disengaged employees costing your organization?

 NOTE:  In the next Spotlight, I will show you how much the average actively disengaged employee is costing the average organization based on U.S.Bureau of Labor Statistics and Gallup Report data. You will be shocked! I researched this a few years ago and I was shocked then with what I found and the situation has not changed!

In 2006, Gallup determined that 15% of employees in the U.S. were actively disengaged. This latest report shows that % has risen to 18% of U.S. employees are currently actively disengaged.

Unfortunately, the number of engaged employees according to this new report has changed very little in the last 12 years. The % of engaged employees hovers near 30% of all employees.

Therefore, nearly 70% of the average employees in a workplace are either not engaged or disengaged.

I made this graph several years ago and it is still valid except that the % of disengaged is currently 18% from an earlier 15%. 

 

% engaged, non engaged, and disengaged employees in U.S. More employees have moved for the non engaged category to the actively disengaged category!  

Actively disengaged employees are actively interferring with other employees’ work and may also be actively causing production problems for the organization. 

 

Not all companies are equal in this problem. Gallup has identified 32 companies ( Gallup’s Great Workplace Award Winners)  in this latest survey which have a high % of engaged employees (in some cases 5 times the ratio of engaged to actively disengaged employees.) according to this report.

Higher % of engaged employees leads to: 

  • higher productivity
  • higher profitability
  • higher customer ratings
  • less turnover
  • less absenteeism
  • fewer safety incidents 

according to this latest report.

Benefits of Engaged EmployeesSo How Do Some Companies Create Greater Employee Engagement? 

In the next Spotlights I am going to cover more facts and give you tips on engaging your employees so you, too, can thrive!

Copyright 2013 Lois Moncrief All Rights Reserved

 

 

 

 

 

Lois Moncrief about 24 KB  448 336

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