How much is disengagement costing you?

We all know that disengaged employees are bad for business. They not only drain morale, but they may also be draining your pockets too. 

Disengagement impacts all areas of business – from productivity to profitability, absenteeism to customer satisfaction. Not to mention, a disengaged workforce leads to a decline in culture, collaboration, and innovation. In other words, it's a downward spiral.  

 

We have combined all these costs and created a calculator that estimates the average yearly cost of disengagement in your organization.

Simply answer the two questions on the right and we can tell you just how much disengagement may be costing you.

Is the number higher than you were expecting? Here’s the good news: recognition can help

Employees who feel recognized are 4x as likely to be engaged. They are more connected, loyal and dedicated to their organizations. In fact, a recent Gallup study found that highly engaged teams saw an...

81% decrease in absenteeism.

18% decrease in turnover for high-turnover organizations.

43% decrease in turnover for low-turnover organizations. 

10% increase in customer loyalty/engagement.

18% increase in productivity. 

66% increase in wellbeing. 

23% increase in profitability. 

Need help revamping your recognition approach? We’re here to help.

How we calculate this information.

On average, 17.2% of an organization's workforce is actively disengaged. Each actively disengaged employee costs their organization an average of 34% of their salary.

By multiplying the number of employees in your organization by 17.2% (the average percentage of disengaged employees), we can find the estimated number of disengaged employees. By multiplying your organization's average salary by 34% (the cost of disengagement), we can find the estimated average cost of one actively disengaged employee. 

Finally, by multiplying these two numbers together, we can find the total estimated cost of disengagement in your organization. 

Source: https://www.linkedin.com/business/learning/blog/learner-engagement/how-to-calculate-the-cost-of-employee-disengagement

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