September 3, 2014

The Enormous Cost of Unhappy Employees

From Inc.

The Enormous Cost of Unhappy Employees

Most business owners know that unhappy employees cost them money, but you'll be shocked at how high that cost actually is.

BY ARIANA AYU  @ARIANAAYUTOPIA

A few weeks ago, we talked about why happiness at work matters; this week I'd like to share the flip side of that: the gigantic cost of unhappy employees.

Employee engagement has been a hot topic for several years now, but what does it really mean and how do you know whether your employees are engaged at work? And why does it matter?

Gallup's State of the Global Workplace reported on employee engagement in more than 140 countries and divided employees into three categories. Below is an excerpt from Gallup's study:

  • Engaged employees work with passion and feel a profound connection to their company. They drive innovation and move the organization forward.
  • Not Engaged employees are essentially "checked out." They're sleepwalking through their workday, putting time--but not energy or passion--into their work.
  • Actively Disengaged employees aren't just unhappy at work; they're busy acting out their unhappiness. Every day, these workers undermine what their engaged co-workers accomplish.

It's easy for us to think the problem lies with others, but the statistics give us a disturbing truth. Through its research, Gallup found that 87 percent of workers worldwide and 70 percent of employees in the U.S. (84 percent in Canada, 83 percent in the U.K.) are either not engaged or actively disengaged. That means only 30 percent of U.S. workers are driving their organizations forward.

If you're one of that 30 percent (or 13 percent worldwide), you know how frustrating it is when the majority of your co-workers are less committed to their jobs. In companies with low engagement, this frustration often causes swift turnover of top talent, since these people quickly realize they're carrying the weight alone.

The costs of low engagement aren't limited to turnover and recruitment. Gallup found that actively disengaged employees cost the U.S. $450 billion to $550 billion per year; that number doesn't even take into account the "not engaged" employees. (Hello, Congress? We've found a way to fix the economy.)

Read more from Inc. >>


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