Do Better Hiring - The RecruitLoop Blog

How Much Can Disengaged Employees Cost Your Business? [Infographic]

Across all industries and sectors, disengaged employees can negatively affect the workplace causing an office to become toxic, companies to lose their competitive edge, or even startups to fail. These employees are essentially sleepwalking through their day by putting in time but not energy or passion.

Unfortunately, more than 50 percent of all U.S. workers are disengaged at work. Fortunately, a company’s culture can help engage team members and improve productivity.

Not only can disengaged employees create a negative work environment but they can also cause a company to lose money. According to a Gallup poll, actively disengaged employees cause U.S. companies between $450 – $550 billion in lost productivity per year.

Employers need to recognize the benefits of investing in employee engagement. By increasing a company’s engagement by just 10% can increase profits by $2,400 per employee per year. Companies with highly engaged employees consistently outperform their competitors because their staff is more likely to have above average productivity. Highly engaged employees are also 87% less likely to leave an organisation than their counterparts, preventing / saving the costs involved in finding replacements.

While culture can’t always be easily defined, it develops over time from the traits of the people hired. Most CEOs believe culture improves the value of their company as well as influencing productivity, creativity, profitability and the growth of the firm. Camaraderie between peers is the number one reason employees go the extra mile and is an important aspect of a company’s culture.

Check out this great infographic by our friends at Villanova University which demonstrates how disengaged employees can be the downfall of any new startup or well-established business, and how business owners who invest in employee engagement practices will have happier, more successful and more productive staff.

Paul Slezak

Cofounder at RecruitLoop. I’ve been a hands on recruiter, manager, trainer, coach, mentor, and regular speaker for the recruitment industry for nearly 25 years. Follow me @paul_slezak.

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