{"id":506008,"date":"2021-09-02T15:44:34","date_gmt":"2021-09-02T10:14:34","guid":{"rendered":"https:\/\/www.springworks.in\/blog\/?p=506008"},"modified":"2025-08-11T14:28:46","modified_gmt":"2025-08-11T08:58:46","slug":"cost-of-low-employee-engagement","status":"publish","type":"post","link":"https:\/\/blog.springworks.in\/cost-of-low-employee-engagement\/","title":{"rendered":"The Cost of Low Employee Engagement"},"content":{"rendered":"\n

Should you be worried about the lack of employee engagement in your organization? <\/p>\n\n\n\n

Employee disengagement can badly hurt your bottom line. Studies show that companies in the USA lose approximately $500 to $550 billion every year. <\/p>\n\n\n\n

Let\u2019s take a closer look. A disengaged employee costs you around 34 percent of what they earn. The average annual income<\/a> of a US full-time salaried employee is $51,480. So, 34 percent of that is $17,503. That\u2019s the amount you lose every year and goes unaccounted for in your balance sheet.<\/p>\n\n\n\n

A recent American workforce survey<\/a> shows that 85% of overall employees are disengaged, and only 30% are looking to grow within their current organization. These numbers are alarming and indicate the extreme level of disengagement in the majority of organizations.<\/p>\n\n\n\n

Before deep-diving into reasons for low employee engagement and ways to boost employee morale, let us consider a broad category of employees based on their engagement level.<\/p>\n\n\n\n

Levels of employee engagement<\/strong><\/h3>\n\n\n\n

We can divide a workforce into three groups based on employee happiness, motivation, and dissatisfaction.<\/p>\n\n\n\n

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  1. Engaged <\/strong>\u2013 They are assets to an organization; highly motivated, passionate, ready to go the extra mile.<\/li>\n\n\n\n
  2. Passively disengaged<\/strong> \u2013 They come to work only for the paycheck and will put in just enough effort to keep their jobs safe.<\/li>\n\n\n\n
  3. Highly disengaged<\/strong> -They are unmotivated and unhappy. Disengaged workers don\u2019t add any value. Instead, they disrupt and affect their co-workers. So much so that when they leave, managers mark them as healthy attrition.<\/li>\n<\/ol>\n\n\n\n

    The critical point to remember: all three categories can switch places very quickly. An engaged and high performer can easily get demotivated and move down to disengaged level and vice-versa. Hence, fostering a working environment that promotes positive contributions is essential.<\/p>\n\n\n\n

    What are the top reasons for employee disengagement?<\/strong><\/h3>\n\n\n\n

    Lack of employee engagement can happen due to multiple reasons. Below are the top picks:<\/p>\n\n\n\n