Posted on July 30, 2014

The Unlucky 13: Quick Facts about the Cost of Unengaged Employees

Do you think employee engagement is a problem faced by other organizations? Think again! Unengaged employees are among the three top business threats, a whopping 84 percent of senior leaders told The Economist.

Research by Gallup and the Global Workforce Survey abounds with data that underscore the true, bottom-line importance of employee engagement. Here are 13 facts to keep in mind about the workforce:

# Unengaged employees are late more frequently and use more sick time.
# Unengaged employees will go as far as to sabotage the efforts of their colleagues.
# Unengaged employees love to complain, which brings down overall morale.
# Unengaged employees become less productive, costing their employers $3,400 to $10,000 in salary, according to Gallup.
# A company loses at least $2,246 annually for each unengaged employee.
# Unprofitable companies have 50 percent fewer engaged employees compared with highly profitable organizations.
# Teams with unengaged employees sell 20 percent less than teams with highly engaged workers.
# Only 31 percent of unengaged employees believe they can make a positive impact on their organization.
# Only 27 percent of unengaged employees believe they can make a positive impact on their organization’s customer service.
# Only 19 percent of unengaged employees believe they can make a positive impact on costs in their division or department.
# Unengaged employees result in blown deadlines and bad sales results.
# As employee engagement decreases, customer complaints tend to increase.
# Unengaged employees pass on their negativity to customers, frequently resulting in customer dissatisfaction and loss.

As alarming as some of these numbers are, employers do have tools to improve engagement and rally employees who are struggling. Need some help? Check out these other Paycor resources:

* 5 Tips for Successful Performance Counseling
* Employee Recognition: 3 Rules to Live By
* Goal-Setting: 5 Simple Steps for Managers
* Your Top 6 Personnel Management Questions Answered

Then watch a brief demo of our HR application, a multifaceted tool that helps you manage performance reviews, training and certification, and employee communications to improve engagement and keep your workforce on track.


Sources: PeopleMetrics, National Business Research Institute