How does employee disengagement affect productivity?

Employee engagement has held the proverbial spotlight for years, signalling how well your organisation enhances the employee experience beyond the basic pay check and benefits package. The topic of employee disengagement is a newer angle that is making headlines as employers start to see measurable impacts when employee engagement is lacking. It is concerning and it has big implications – the biggest being on overall productivity. The reality is that employee disengagement can be devastating to many aspects of the organisation and should not be taken lightly. Before diving too deep, let’s explore a few basics. 

What is employee disengagement?

Harvard University defines employee disengagement as the phenomenon that occurs when an employee does not feel things like excitement, joy, motivation, or enthusiasm towards their work. They may have a lack of commitment to their job and are generally unhappy with their work. To add to this, they may not be very communicative, choosing to stay quiet and not engage in team activities.

A disengaged employee should not be confused with an unengaged employee. According to PeopleHR, an unengaged employee is someone who may actually feel content with the work they are doing, but they are only showing up for the pay check. Getting them to take on extra responsibilities beyond what their job description entails could be a challenge. When it comes to unengaged vs disengaged employees, those who are unengaged may not be winning any overachiever awards, but they likely aren’t causing harm to the work environment either.

What is causing employee disengagement?

In order to better understand how to prevent employee disengagement, we must first establish the source(s). The answer to that question can be complicated, but Gallup tells us there are four themes behind employee disengagement.

1. Culture: People want to have a sense of belonging. They value autonomy, their wellbeing, and possess additional values that should be matched.
2. Leadership: If leadership is lacking consistent communication, transparency, and involvement, this causes employee engagement to take a big hit.
3. Compensation and benefits: Not being appropriately compensated or invested in can cause disengagement. This includes compensation, perks and benefits, and the tools and resources available to employees.
4. Performance management: Employees seek development and growth opportunities and feedback. They also want recognition for the work they are doing. A lack of any of these could naturally lead to a less engaged attitude towards their work.

Harvard mentions similar causes, but they take it a step further and add an emphasis on leadership and management. Having leadership that does not lead with transparency and vision is frustrating to employees and can be quite unsettling for them, especially if they begin to feel they are not involved in decisions.They also mention excessive workload as a culprit. An overwhelming workload is a major contributor to stress and job dissatisfaction and leads to a destabilisation of the sought-after work-life balance.

How does employee disengagement affect productivity?

The quick response to this question is that employee disengagement affects productivity in a significant way. According to Gallup, employee engagement around the world fell to just 21%. In the US alone, engagement sits at a measly 32% and the cost of that disengagement is steep – approximately $2 trillion has been lost in productivity this year.

This lack of engagement can trigger a ripple effect of negative outcomes for the business which can include:

1. Decreased productivity: Employee disengagement leads to a sharp decline in productivity and efficiency. If they aren’t interested in or motivated by their work, their efforts are going to decrease, and they may start missing deadlines or making more errors. This, in turn, costs the business time and money.
2. Increased turnover: If an employee isn’t engaged, motivated, or interested in their work, they are going to seek out opportunities that better meet their needs, causing them to leave the organisation. This turnover forces the organisation to now cover the hiring and onboarding costs to replace them.
3. Reduced customer service: When an employee isn’t motivated to do their job well and they are customer facing, this will impact the level of customer service they provide, leading to a noticeable decrease. In return, this could cast a shadow over the organisation’s reputation and create a long list of unhappy clients.
4. Diminished culture: Employee disengagement can be contagious. This lack of engagement when spread to others can lead to an environment of discontent. Over time, this can have a greater impact on the company culture and team morale.

Taking the first step to overcome a lack of engagement

When you combine all of these impacts on the business, a lack of engagement results in a decrease in productivity and efficiency. Without employees in these roles who can do their jobs well while being positive and engaged members of the organisation, you risk facing significant losses from both a cultural and financial standpoint.

It’s important to pay attention to the work environment around you. Take note of the attitudes of your colleagues or employees and be receptive to the fact that something may be wrong. Admitting that employee disengagement exists is the first step in curbing a costly but surmountable problem.