“Employee engagement” has become a buzzword in recent years, and for good reason. When employees feel valued and empowered, and are truly passionate about what they do, they become a driving force for innovation, customer satisfaction, and productivity.
The “Quiet Quitting” Epidemic
Alarmingly, only 1 out of every 3 employees is engaged at work. Of these, 50% are so disengaged they are considered “quiet quitters” – those who only do the bare minimum. Office workers, salespeople and construction workers have an even lower rate of engagement – a mere 12%.
The cost of this disengagement may be higher than you think. Gallup found that employee disengagement costs employers a whopping 34% – that is, $3,400 for every $10,000 of salary paid. Which puts the average annual cost of disengagement per employee at more than $10,100 nationwide. In fact, 17% of an employee’s time is wasted due to disengagement.
And this figure does not include other costs like benefits and payroll taxes. According to the Hadzima Method, employees actually cost their base salary multiplied by 1.4. Thus, an employee who is paid $60,000 per year actually costs around $84,000 per year. So a disengaged employee could be costing the company an additional $8,160 each year.
Employee Engagement and Your Bottom Line
Engaged teams are more likely to go above and beyond their job description, proactively addressing challenges as they arise. It is no surprise that engaged teams outperform their disengaged counterparts in profitability, revenue growth and overall organizational performance. How much more? A study by Gallup found that highly engaged employees generate a 23% increase in profitability for their organization.
Engaged employees come to work with passion, purpose and energy, increasing their resilience to workplace stressors. They also become a company’s most valuable advocates, spreading positivity and attracting top talent. As a result, organizations with highly engaged employees enjoy a 41% reduction in absenteeism and 59% less turnover, saving thousands of dollars each year in hiring, training and onboarding costs.
Employee engagement is critical to an organization’s success. But why do even the most driven and hard-working individuals suddenly lose their spark? What can companies do to ensure their employees stay happy and productive?
Drive and Decline
When beginning a new career or joining a new company, employees are often highly motivated. They bring fresh ideas, enthusiasm and a strong desire to make a meaningful impact. However, this initial drive declines over time, and the biggest culprit is a perceived lack of appreciation.
Employees who consistently put in effort without receiving adequate recognition or opportunities for growth can feel disillusioned. When their hard work goes unnoticed or unrewarded, it sends a message that their contributions are not valued. When employees feel undervalued and unappreciated, their motivation wanes, leading to a culture of minimal effort.
Leadership and Culture
Leadership plays a crucial role in shaping the culture of an organization. Leaders who actively engage with their employees, recognize their efforts, and invest in their development can create a motivated and high-performing workforce.
Investing in employees goes beyond financial rewards, however. It includes providing opportunities for professional development, creating a supportive work environment, and fostering a culture of recognition. When leaders show genuine interest in their employees’ well-being and career growth, it amplifies productivity and solidifies loyalty to the company. When employees are happy, they stick around, saving the company from high turnover costs and losing valuable institutional knowledge.
Invest in Employee Engagement Today
Employee engagement is more than a buzzword; it’s a critical component of organizational success. When employees feel valued, recognized, and invested in, they bring passion and dedication to their roles, driving innovation and productivity.
Chat with our training consultant today to discover ways to boost your employee engagement and grow your profitability. All calls are complimentary and confidential with no commitment required.