Kathleen Ranahan, MBA

Kathleen Ranahan, MBA CEO

Home / Blog / Financial Impact of Disengaged Employees
Posted by Kathleen Ranahan on August 7, 2013.

In their global workforce study, Towers Perrin found that 4 out of 5 employees are not contributing up to their potential. They also found that 4 out of ten workers are disenchanted or disengaged! Of the top 10 drivers of employee engagement, Towers Perrin found that half were related to the organization and half were related to the department / personal level.

Employee Engagement refers to the degree to which employees connect with their work and feel committed to their organization and its goals.  If an employee is highly engaged he knows expectations personally and professionally, and is secure and committed to excellence. If an employee is engaged he often understands the expectations, is somewhat secure, and easily motivated. Disengaged employees have a tendency to question expectations, is insecure, and dissatisfied. A highly disengaged employee does not know expectations, is fearful, and very bitter.

The Human Capital Institute has calculated the productivity impact based on levels of engagement. A highly engaged employee contributes at 120% of their pay. An engaged employee contributes at 100% of pay. A disengaged employee contributes at only 80% of their pay. Finally a highly disengaged employee contributes at only 60% of their pay.

Author: Kathleen Ranahan

Kathleen Ranahan Kathleen’s expertise is derived from 20+ years of Business Operations, Sales / Marketing and Human Resources background, from start-ups to Fortune 500 companies. Her knowledge base encompasses Business and Organizational Development, Performance Management, Employee Relations, Recruitment and the proven ability to assist with the growth and development of individuals or corporations.

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