{"id":10994,"date":"2024-08-08T14:54:26","date_gmt":"2024-08-08T12:54:26","guid":{"rendered":"https:\/\/www.jobprofile.ch\/?p=10994"},"modified":"2025-04-04T14:55:34","modified_gmt":"2025-04-04T12:55:34","slug":"employee-disengagement-is-costing-companies","status":"publish","type":"post","link":"https:\/\/www.jobprofile.ch\/en\/employee-disengagement-is-costing-companies\/","title":{"rendered":"Employee disengagement is costing companies"},"content":{"rendered":"[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; bottom_margin=&#8221;50&#8243; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221; gradient_type=&#8221;default&#8221; shape_type=&#8221;&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text text_direction=&#8221;default&#8221;]\n<h1><strong><span style=\"font-size: 18pt;\">Raising awareness and taking action&#8230;<\/span><\/strong><\/h1>\n<p><span style=\"font-weight: 400;\">More than half of employees report being relatively unproductive at work.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some employees are destroying value. Others are building it. Do you know the difference?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to a recent McKinsey research, employee disengagement and attrition could cost a median-size S&amp;P 500 company between $228 million and $355 million a year in lost productivity.\u00a0<\/span>[\/vc_column_text][vc_column_text text_direction=&#8221;default&#8221; css=&#8221;.vc_custom_1723120261423{margin-top: 50px !important;}&#8221;]\n<h2 style=\"text-align: justify;\"><strong><span style=\"font-size: 18pt;\">What are the drivers of disengagement?<br \/>\n<\/span><\/strong><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">Inadequate total compensation\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Lack of meaningful work<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Lack of workplace flexibility\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Lack of career development &amp; advancement\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Unreliable and unsupportive people at work\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Unsafe workplace environment\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Non-inclusive and unwelcoming community<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Lack of support for employee health and well-being\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Uncaring and uninspiring leaders<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Unsustainable work expectations<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Lack of geographic ties and travel demands\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Inadequate resource accessibility\u00a0<\/span><\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text text_direction=&#8221;default&#8221; css=&#8221;.vc_custom_1723190219626{margin-top: 50px !important;}&#8221;]\n<h2><span style=\"font-size: 18pt;\"><strong>Understanding the true cost of employee disengagement and strategies for improvement<br \/>\n<\/strong><\/span><b><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Whether through layoffs, reorganization, or attrition, many companies underestimate the true cost of losing talent, which ultimately results from employee disengagement. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This loss extends beyond the obvious visible expenses, such as severance pay, fees, recruiting, and training new employees. It also includes dips in productivity, poor customer service, low morale, and the gradual erosion of company culture. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Recognizing the full cost of disengagement motivates organizations to prioritize the employee experience.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employee disengagement is detrimental to both employees and leadership. Beyond the lack of enjoyment, disengagement carries a significant financial burden that impacts a company\u2019s bottom line. Gallup estimated that the cost of disengaged employees reached as high as $550 billion in the US alone.<\/span>[\/vc_column_text][vc_column_text text_direction=&#8221;default&#8221; css=&#8221;.vc_custom_1723190294487{margin-top: 50px !important;}&#8221;]\n<h2><span style=\"font-size: 18pt;\"><strong>Sources of disengagement costs<\/strong><\/span><b><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The primary source of these costs is attrition: disengaged workers are more likely to quit, and those who stay often see a decline in performance. The global annual quit rate is now at 3%, a 20-year high.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, there is good news. While only 32% of U.S. employees were engaged in 2022, some organizations have more than doubled this percentage. These organizations maintained high engagement levels by aligning their business decisions with their organizational culture and values, embracing flexible and hybrid work models, and fostering strong connections between managers and employees. They prioritized performance, collaboration, employee well-being, and customer satisfaction. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most importantly, they equipped their managers with the skills and tools to have ongoing, meaningful conversations with employees.<\/span>[\/vc_column_text][vc_column_text text_direction=&#8221;default&#8221; css=&#8221;.vc_custom_1723190369801{margin-top: 50px !important;}&#8221;]\n<h2><span style=\"font-size: 18pt;\"><strong>Benefits of employee retention<\/strong><\/span><b><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Retaining employees saves organizations both &#8220;hard&#8221; and &#8220;soft&#8221; costs, visible and invisible. Keeping talented, skilled employees is not only beneficial for the organization but also reverses the negative cycle for individuals. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">When employees feel valued, respected, and supported, they become more productive and motivated, leading to higher job satisfaction and better performance. This results in improved customer service, higher efficiency, and positive employer branding. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Talent is attracted to companies that exhibit high levels of trust, safety, and engagement, which reduces recruitment costs and enhances the workplace environment. Ultimately, no one enjoys being disengaged in their job.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The bottom line? <strong>Organizations can\u2019t wait to act.<\/strong>\u00a0<\/span>[\/vc_column_text][vc_column_text text_direction=&#8221;default&#8221; css=&#8221;.vc_custom_1723121146248{margin-top: 50px !important;}&#8221;]\n<h2><span style=\"font-size: 18pt;\"><strong>People development to overcome talent challenges<\/strong><\/span><b><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Organizations face a critical shortage of talent and skills. Investing in people can create a virtuous cycle that improves the ability to <a href=\"https:\/\/www.jobprofile.ch\/en\/job-profiling-recruitment\/\">attract<\/a>, advance, and retain talent.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The talent shortage is a critical problem that is only getting worse. Organizations already face a severe shortage of key talent, and 90 per cent say they will have a meaningful skills gap in the coming years.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the same time, digitalization and automation of work activities are leading to further skill shifts, with about 40 percent of Americans and 34 percent of Western Europeans potentially needing to switch occupational groups by 2030. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">And with 40 percent of workers planning to leave their jobs, attrition is making it harder to retain skills within organizations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The bottom line? <strong>Organizations can\u2019t wait to act.<\/strong>\u00a0<\/span>[\/vc_column_text][vc_column_text text_direction=&#8221;default&#8221; css=&#8221;.vc_custom_1723190455371{margin-top: 50px !important;}&#8221;]\n<h2><strong><span style=\"font-size: 18pt;\">Choose potential, mix of courage and strategy<\/span><\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Companies need to radically change the way they think about talent. Focusing on potential is as important, if not more important, than skills and experience. This is a stance that needs to be adopted in the attraction, recruitment and skills development phases throughout the company. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">People development is often overlooked and underused, but it\u2019s critical to attracting talent and driving lasting market advantage.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Redesigning people\u2019s development is complex and challenging. But it is possible to achieve it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It requires acting on shifts in modern employee behavior, keeping pace with the speed and scale of business capability-building needs, and applying the latest innovations in learning technology.\u00a0<\/span><\/p>\n<p>Jobprofile can help you meet this challenge, whether through career development programmes (<a href=\"https:\/\/www.jobprofile.ch\/en\/programmes-et-modules\/essential\/\">Essential<\/a>, <a href=\"https:\/\/www.jobprofile.ch\/en\/programmes-et-modules\/corporate-ladder\/\">Corporate ladder<\/a> or <a href=\"https:\/\/www.jobprofile.ch\/en\/programmes-et-modules\/career\/\">Career<\/a>) or by developing your company&#8217;s internal skills strategy.<\/p>\n<p>What&#8217;s more, Jobprofile can help you identify your <a href=\"https:\/\/www.jobprofile.ch\/en\/culture-analytics-consulting\/\">corporate culture<\/a> so that you can choose targeted and effective actions to develop the commitment and engagement of your employees.[\/vc_column_text][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; bottom_margin=&#8221;50&#8243; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221; gradient_type=&#8221;default&#8221; shape_type=&#8221;&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243;&#8230;<\/p>\n","protected":false},"author":3,"featured_media":8380,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[15,33],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Employee disengagement is costing companies - JobProfile<\/title>\n<meta name=\"description\" content=\"Reduced performance, staff turnover, loss of talent. 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