What are the costs of not actively engaging your employees?
Posted November 25, 2021 by kozmun
There are concrete costs due to employee disengagement.
The Management Journal’s semi-annual Employee Engagement Index reports that 60% of employees are not engaged, and 15% are actively disengaged at work and only 25% are actively engaged.
According to Forbes, the costs of a disengaged employee is equivalent to 34% of their annual salary, or $3,400 for every $10,000 of income.
Example of Cost of Employee Disengagement
If we applied this to the average Canadian salary of $55,800 a year, the costs of a single disengaged employee to the business is going to be $18,972 annually.
Let’s apply this to an entire organization.
Let’s say you lead an organization of 100 people.
If we use the Employee Engagement Index which states only 25% of employees are actively engaged, then 75 employees are disengaged at your organization.
If we use the average salary of those employees as $55,800 then this employee disengagement is costing your organization annually: $1,422,900 ($18,972 X 75 people.)
This example demonstrates that there are concrete costs due to employee disengagement.
Are you surprised by the magnitude of this cost? What is the actual cost to your organization? Are you OK with the return on this investment?
The Great Engagement is an Urgent Call to Action for Businesses
The Great Engagement is an urgent call to action for businesses to retain and attract great employees. It’s your choice: you will either have the cost of disengagement or invest in engaging your employees.
While there is no quick fix, there are simple leadership practices that can produce immediate improvements in engagement.
Great Engagement: Engage and Mobilize Employees Program
To develop your strategies our Great Engagement: Engage and Mobilize Employees Training Program focuses on simple but powerful behaviours that will have maximum impact on a leader’s ability to engage his or her employees.
Your organization may be eligible for funding through the Canada Job Grant program. Employers may be eligible to receive two-thirds of the training cost.