Accelerate May 2015 - Page 30

Engagement "The days of the hard-nosed, profit-obsessed CEO are slowly coming to an end. While most businesses expect people to work hard, CEOs now realise that it’s the soul of the business that inspires people to contribute." --Josh Bersin, Principal, Deloitte Consulting LLP When disengaged workers leave, the cost to replace them ranges from 16 percent to 213 percent of their annual salary. Companies spend over $720 million each year on employee engagement, and that’s projected to rise to over $1.5 billion. The Gallup Organisation estimates that there are 22 million actively disengaged employees costing the economy as much as $350 billion dollars per year in lost productivity including absenteeism, illness and other low morale issues. And yet, employee engagement is at record lows. Of the 70 percent of employees that are disengaged, only half are seeking employment elsewhere. That leaves a dangerously high number of employees, approximately 35 percent, remaining in the workforce. They are draining productivity and adversely impacting Company culture and reputation. Research by Modern Survey, an organisation that measures workforce intensity, has identified those remaining disengaged employees into three general categories: The Comfortable Employee The Overpaid Employee These employees feel they have been at their job long enough, and deserve the pay they have without earning it. They may feel entitled to the positions they hold, but they do not offer innovative ideas or feel the need to improve. Long-term employees and employees who are nearing retirement may fall into this category. 30 The Preoccupied Employee These employees may be dealing with a problem outside of work, such as a health issue or divorce. This type of disengagement may be temporary, but long-term issues may feed off each other and become too much for the employee to deal with without disengaging from work permanently. These employees may be interested in leaving, but they do not look for opportunities elsewhere. They have done the research, and have found they are paid more than they are worth in the open market. So, they sit tight. May 2015