You’ve probably been on a team that isn’t quite engaged. It’s an epidemic. According to Gallup in a global analysis, 23% of employees were engaged at work in 2022. This implies that a significant portion of up to 77% of global workers are either not engaged or actively disengaged.
The costs of disengagement to organizations are staggering
Disengaged employees are estimated to cost the U.S. economy between $450 to $550 billion annually in lost productivity. Similarly, on a global scale, disengaged employees are estimated to cost about $8.8 trillion in lost productivity, which is approximately 9% of global GDP.
Disengagement causes:
- Reduced productivity. Disengaged employees are less productive, with engaged teams showing a 22% higher productivity rate compared to disengaged teams.
- Increased turnover. High disengagement correlates with increased turnover and talent retention issues. Organizations with engaged employees experience up to 59% less turnover than those with disengaged employees.
- Lower work quality. Disengaged employees contribute to 40% fewer quality control issues when engagement is high, implying that disengagement can lead to higher incidences of errors and lower work quality.
- Higher absenteeism. There’s a 41% reduction in absenteeism for highly engaged teams, highlighting how disengagement leads to more frequent absences.
- Decreased customer satisfaction. Companies with high employee engagement see 89% greater customer satisfaction, suggesting that disengaged employees can negatively affect customer interactions and satisfaction.
- Safety risks. Engaged workplaces are safer, with engaged employees being less likely to be involved in accidents. Disengaged workers might not adhere strictly to safety protocols, increasing risk.
- Stagnated innovation. Disengaged employees are less likely to contribute new ideas, stifling innovation. This can hinder a company’s ability to adapt and stay competitive.
- Poor morale. Disengaged employees can spread negativity, impacting team morale and overall workplace culture, leading to a more demotivated workforce.
- Compromised competitive edge. With 59% of employees worldwide being quietly disengaged and 18% actively disengaged, companies with high disengagement rates struggle to maintain a competitive edge in innovation and customer service.
If you’re leading a team, it’s critical to understand not only the impact of disengagement on your organization but also the causes. When we look at root causes, we can address disengagement and help our teams find greater fulfillment in their daily work.
Employees want to feel engaged
No one wants to be disengaged. In fact, many report that they actually want to feel more purpose and meaning at work. They seek:
- Meaningful work. Employees want jobs that offer a sense of purpose or connection to a larger goal.
- Autonomy. People want more control over how they do their work, which fosters a sense of responsibility and engagement.
- Collaboration. Many employees desire greater opportunities to work with others, share ideas, and feel part of a team.
- Professional growth. Employees desire clear pathways for career advancement and opportunities for learning new skills.
- Recognition and appreciation. People seek regular feedback and acknowledgment of their contributions.
- A better work environment. Workers want an environment where they feel trusted and valued, where their well-being is considered.
So, what’s the problem?
If organizations are negatively impacted by disengagement and employees don’t want to be disengaged, where’s the problem? What is causing employees to lack meaningful work, autonomy, and other motivating factors when the stakes are so high?
It boils down to motivation. If organizations are not dialed into their employees and how they are motivated, then fixing the problem of disengagement might seem futile. To fix the foundational problems of disengagement, leaders must engage first.
Ten causes of employee disengagement
1. Poor management
Ineffective or absent management can lead to disengagement, as employees may feel unsupported or undervalued. This includes managers who do not communicate well, provide feedback, or recognize employee efforts.
To fix management, leaders must understand how to communicate with their people. The problem is that everyone communicates differently. Each of us has our own Motivation profile that, when understood and leveraged, is the key to better management. Leaders must:
- Know the Motivational Dimensions of the people they manage.
- Understand what feedback works for each of their people.
- Which employees need in terms of recognition. Recognition for an Achiever looks different from recognition for a Learner.
2. Lack of career growth or opportunity
When employees see no path for advancement or talent development within the company, they become disengaged due to a lack of motivation or purpose. They feel adrift and wonder whether the work they’re doing has meaning.
To create career growth and opportunity, leaders must:
- Clearly communicate the mission and vision of the organization and show how each employee fits within that growth.
- Create pathways for skill enhancement and process optimization.
- Offer opportunities to design and lead new initiatives.
3. Lack of recognition and appreciation
Employees thrive when their hard work is acknowledged; without recognition, they may feel their contributions are not valued, leading to disengagement. Each person requires different recognition. Even if leaders believe they are recognizing their teams, if they’re not doing so in a way that resonates with Motivational Dimensions, that recognition might fall flat. Leaders must:
- Know how their people feel recognized. For example, Achievers want recognition highlighting individual excellence, not necessarily for being a team player.
- Provide opportunities for individuals to showcase what gives them a feeling of pride.
- Give people visible ownership of projects and their outcomes.
4. Unsatisfactory compensation
If employees believe they are not paid fairly relative to their peers or industry standards, this can lead to disengagement and even prompt them to seek other opportunities. With new initiatives in pay transparency, there is a risk of perceived gaps in compensation. Leaders must:
- Be attuned to compensation throughout their industry.
- Create performance-based bonus structures that tie to individual performance aligned with organizational objectives.
- Tie compensation to measurable improvements made.
- Link compensation to the successful implementation of strategic initiatives.
5. Lack of employee autonomy
Overbearing control or micromanagement can make employees feel distrusted, reducing their engagement as they lack the freedom to use their skills and judgment. When leaders don’t give employees the ability to set their own direction in achieving objectives, they don’t have the opportunity to tie intrinsic motivation to their daily work. Leaders must:
- Trust that they’ve hired well for the job and trust their people to perform.
- Give employees the opportunity to communicate their own vision for their role.
- Grant creative freedom in project execution.
- Allow people the opportunity to make mistakes and learn from them. Give them authority to implement process improvements.
6. Poor work-life balance
Excessive workload or lack of flexibility can lead to burnout, stress, and, ultimately, disengagement from work responsibilities. When employees are burned out or stressed, they may feel that there is no end in sight for what is being asked of them.
Be aware of signs of burnout or stress. Leaders must:
- Create flexible schedules that accommodate family time and responsibilities.
- Allow for creative breaks and inspiration time to explore and develop optimized workflows.
- Encourage people to set clear boundaries between work and personal time.
- Encourage people to take their paid time off and have downtime away from their daily work.
7. Lack of purpose or meaning in work
When the work does not align with an employee’s personal values or if they do not see the impact of their work, engagement can wane. Employees want to know that their work has meaning and that what they are doing matters.
A leader that effectively communicates vision, mission, and purpose for the organization must also align that vision with everyone’s role. As well, that vision should be communicated in a way that aligns with Motivational Dimensions.
- For Visionaries, connect daily tasks to long-term organizational vision.
- For Relators, highlight the impact of work on team and community.
- For Optimizers, demonstrate how their efforts lead to meaningful improvements.
8. Inadequate training and resources
Without proper training or the necessary tools to perform their jobs effectively, employees can become frustrated and disengaged. Professional development should be a priority no matter where a person works in an organization, from leaders and managers all the way to customer support, sales, and production. When development is not prioritized, it can lead to disengagement.
To fix this, leaders must focus on their most important resource: the human beings in the organization.
- Understand the Motivational Dimensions of every employee and how they best learn. For a Learner, they’ll want to dive deep into topics and share what they’ve learned.
- Provide comprehensive training programs and resources
- Invite feedback from employees about their jobs, asking for gaps in clarity on their role.
9. Toxic workplace culture
An environment where blame is common, equality is not practiced, or there’s no safe space for innovation can deter employees from being engaged. A lack of psychological safety can dramatically impact culture. Employees may fear retribution for speaking up if they see problems that aren’t being addressed. They may not see worth in their value or lack opportunities to collaborate.
Leaders must cultivate a positive workplace culture and not leave it to chance. They must:
- Be aware of conflict within an organization and quickly address issues that inevitably arise.
- Pair complementary Motivational Dimensions together on projects to create collaborative environments.
- Task Influencers to shape positive cultural transformation initiatives.
- Allow your Relators to uncover hidden issues and empower them to foster a collaborative, supportive environment for all.
10. Lack of connection with peers
Strong peer relationships are vital for engagement and team cohesion. An environment that doesn’t foster team building or cross-functional collaboration can lead to isolation and disengagement. If turnover is high, this can affect morale and damage meaningful work relationships that foster positive outcomes for all.
Leaders must prioritize peer connection and allow for meaningful relationships at work.
- Give your people opportunities to deepen relationships.
- For Relators, ask them to create regular team bonding opportunities.
- For Learners, provide opportunities for knowledge-sharing sessions
- For Influencers, facilitate cross-functional collaboration projects.
Align motivation to improve employee engagement
This motivation-aligned approach ensures that engagement initiatives resonate with employees’ intrinsic drives, making them more effective and sustainable. When leaders prioritize motivation within an organization, it can positively impact all aspects of employee engagement, fulfillment, and productivity.
When you’re ready to bring Motivation Code into your organization, contact our team to learn more.
