Low Employee Engagement

Costs of Low Employee Engagement

Gallup (2013) estimates that actively disengaged employees cost the U.S. $450 billion to $550 billion in lost productivity per year. Research shows that low employee engagement impacts performance, but also may increase employee turnover, reduce customer service satisfaction and increase absenteeism (Cataldo, 2011). Other researchers have determined that poor performers will cost an organization about one half of their gross salary (Cataldo, 2011). An actively disengaged employee does the most damage with their outward unhappiness through their actions and attitudes (Cataldo, 2011). They sabotage the performance of others by constantly voicing their displeasure and voicing the many reasons why they are so

Burnout is a process that occurs because of job demands, causing weakening of health and depleted energy as the negative outcomes (Bakker & Demerouti, 2007; Persson, 2010). Employee engagement develops from a motivational process dependent on job resources (Persson, 2010). The internal and external reasons that motivate employees are feelings of belonging, competency, autonomy, adequate financial compensation and benefits. These reasons are shown to enhance employee engagement, whereas their absence will weaken engagement and result in frustration and failure to achieve company objectives (Bakker & Demerouti, 2007; Persson, 2010).

One cost of disengagement is employee turnover; it is not an event but is a process. Branham, (2005) indicates that employees begin to disengage and consider leaving when one or more of four fundamental needs are not met. These needs are:

• The need for trust, expecting the company to deliver on their promises, with open and honest communications and be treated fairly and compensated

Critics of government including politicians and media portray government employees as overpaid and underworked. These negative projections and images hurt the morale and engagement of public employees. Another challenge is an older workforce, government workforce is more educated and more white-collar than private sector (Lavigna, 2014). In 2013, 56.7% of federal workers were between the ages of 45 and 64, whereas 42.4% of private sector workers (Lavigna, 2014). Managers can maintain energy in their groups by discussing retirement and ease employees into the next phase of their lives and recruit highly motivated new people (Lavigna,