It happens at many companies…lessened productivity, and fractionating of previously high-functioning teams. Statistics show an estimated 22 million Americans are disengaged at work. Extrapolated to Canada, the number of disengaged presents a greater risk to the economy than unemployment.
Globally, only 25 percent of disengaged employees plan to stay with their current employer compared to 60 percent of the engaged. The annual direct and indirect costs of employee dissatisfaction in the US is estimated at $50,000 for a middle manager and ~$95,000 for a senior manager. The costs are considerably higher in specialized fields and/or large urban centres such as Calgary, Houston, Chicago, New York, etc.
Too few organizations measure the cost of employee disengagement and even fewer have taken action to address this epidemic — at their peril. Employee disengagement is appearing on more boardroom agendas – as an element of risk to be managed through the corporate governance process.
A Towers Perrin study in 16 countries and four continents noted that while most employees are eager to contribute more leadership behaviour and organizational culture discourage them from doing so. Donald Lowman, Director, Towers Perrin, reported that many of the 85,000 surveyed cited unintentional obstacles erected by leaders and supervisors reported.
We have a quiet killer of profitability, productivity and innovation.
Signs of Disengagement
- Increased turnoverDrop in producivity
- Lack of innovation
- High turnover of employees with less than 5 years tenure
- Low scores on employee engagment surveys
- Decline in customer satisfaction
- Drop in service delivery or product quality
Contributors to employee disengagement
- Leadership behavior misaligned to corporate values
- Lack of accountability
- Leaders not addressing poor performance
- No visible succession planning and career progression opportunities
Recommended Actions
- Conduct employee focus groups
- Evaluate your succession planning and talent management practices
- Define and govern leadership competencies
- Objectively assess your performance management practices
- Conduct exit interviews
Re-engaging your workforce delivers positive results to the bottom line. Benefits include: improved financial metrics; more highly satisfied customers; an improved health and safety record and employee retention. Develop and implement a plan of action. You will reap short term and long -term benefits as you increase productivity and innovation while retaining and attracting superior talent.
Interested in the full article? Send an email to lorraine.a.moore@live.ca
Article Source: http://EzineArticles.com/520264
Corporate Research Associates Inc 2011
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