How much Cost matters?

Gallup states that every disengaged employee costs the organization $13,000 per year in lost productivity. It is costing companies in America around $300 Billion per year. Other research across all types of industries shows that every 1% improvement in culture brings a corresponding 2%- 3% increase in revenue.

I have a high interest in people feeling ‘connected’ to their work. We are designed to work, hard wired with particular talents, and spend most of our waking lives at work. To not be engaged at work places a heavy drag on the workplace and business. Threats, higher salaries, even IQ won’t fix it.

Emotionally disengaged employees have higher ill health

A Nov-Dec 2010 Gallup Report found that emotionally disengaged employees report  far more ill health than engaged employees….actually about as much as the unemployed.

Corporate Social Responsibility (CSR)

The same research indicates workplaces that create environments that disengage employees might be creating health risks that are as troubling as those the unemployed face, both sharing similarly higher rates of chronic disease and obesity, e.g.high blood pressure, high cholesterol, and diabetes.

The Spectrum of:  Engaged – Not Engaged – Actively Disengaged

  • Engaged employees are involved in and enthusiastic about their work.
  • Those who are not engaged are satisfied with but are not emotionally connected to their workplaces and are less likely to put in discretionary effort.
  • The actively disengaged workers are emotionally disconnected from their work and workplace and jeopardize the performance of their teams.

Employee engagement and performance outcomes

Gallup research has found that how employees are managed can significantly influence employee engagement and disengagement, which in turn influences an organization’s bottom line.

Gallup’s employee engagement index is based on more than 30 years of in-depth research involving more than 17 million employees, studying which workplace elements matter most in driving performance outcomes across organizations throughout the world. Gallup researchers identified 12 elements (the Q12 ) that that link powerfully to key business outcomes including productivity, growth and profitability. These are summarized into 12 survey items that best predict employee and workgroup performance.

Gallup research consistently showed a tendency for actively disengaged workers to be (in comparison with colleagues):

  • significantly less productive
  • report being less loyal to their companies
  • less satisfied with their personal lives
  • more stressed and insecure about their work

What do the latest scientific disciplines say?

The book, 12: The Elements of Great Managing by 12, is a successor to the classic First, Break All the Rules (What the World’s Best Managers Do Differently). In addition to Gallup data, the authors Wagner & Harter make use of the latest insights from brain-imaging studies, genetics, psychology, behavioural economics, and other scientific disciplines to reveal what drives the best managers…and why higher salaries don’t always produce better work.

As Wagner and Harter summarize, “Ultimately, what emerged are the 12 elements of work life that define the unwritten social contract between employee and employer…..The workers were saying, ‘If you do these things for us, we will do what the company needs of us.’

In order to understand the level of engagement and how it impacts your organization, we invite you to contact us to participate in a free assessment, the Gallup Q12 Survey.