Executive Summary
Research by AON Hewitt tells us that nearly half of the world’s employees are not engaged, and that each disengaged employee costs your organisation an average of $10,000 in profit annually.
Why is employee disengagement so high? Is it something all organisations just have to “live with” or is there a way of managing it and perhaps converting disengaged employees into team members who are happy and enthusiastic about their work?
There are many benefits to having a workforce that is engaged in their work.
Employees who are actively engaged in their work:
• are happier and less likely to move on to another competitor
• tend to feel less stressed and call in sick less
• feel that their actions matter so are more likely to work diligently which increases quality and productivity
• have positive attitudes about their company, management,
co-workers and customers making them more likely to share their time and talents and bring their best ideas and creativity to their workplace
Unfortunately, the recent climate of economic uncertainty has thrown many organisations into turmoil as they struggle to make changes so they can maintain a competitive foothold in the marketplace. It is the employees who are feeling the strain as their employment or promotional prospects look shaky and internal communications dry up while senior executives work out how to deal with the situation. That’s where employee disengagement enters.
In this paper we pose the following questions:
• Is your workforce destined to remain disengaged?
• What does that do to your business performance?
• More importantly what does it do to morale?
• Is disengagement contagious?
• Is it systemic?
• What can you do to overcome disengagement?
We found that in many cases, employee disengagement is a systemic organisational issue. It is caused or aggravated by out-dated systems which ignore the basic needs of the employee and exist primarily for the benefit of the business. It’s an old strategy which is well past its use-by date.
Successful organisations have identified the main factors behind disengagement and have begun to address them. They have realised that their leaders hold the key to employee engagement because they are the meeting point between employee and organisational needs.