What is the Cost of Employee Disengagement?

ArticlesAugust 2, 2017

Cost of Employee Disengagement

Employee disengagement is extremely costly. It seeps into the work atmosphere, infects the workforce, and affects every part of the organization. The results include increased absenteeism, negativity, and internal conflict. When this happens, the workplace is not a happy place to be.

The attitude and actions of employees can make or break client (internal and external) relationships. The actual cost of a dissatisfied client is not just one transaction or interaction but the loss of the “trust and confidence” of that client.

Delivering poor quality services, missing deadlines, or sending the wrong product are all issues which can be readily linked to a disengaged employee. The impact of lost or diminished business can often be substantial, even to the point of threatening the survival of the company.

How many people can one disengaged employee affect? Imagine just 5-10 customers, colleagues, or acquaintances hearing repeatedly that XYZ Company is a bad place to work. Not only can this negative buzz hamper immediate productivity, it can also damage the reputation of the company‟s brand in the marketplace and affect the company‟s ability to attract quality employees in the future.

The financial cost of employee turnover has actual and hidden costs:  the time required to recruit and train new employees and the potential loss of service during the vacancy period.

In addition, it is costly for a company to identify the disengaged employee, understand the reasons for the disengagement, and implement the actions required to improve the situation.

Do you need to recharge your team? Would you like to see your employees and organizations on fire?

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