Employee engagement is an important part of any successful business, and when employees are engaged and motivated, they contribute significantly to the success of the organization, driving innovation and efficiency. Unfortunately, when employees are disengaged, it can lead to poor performance, decreased productivity, and a drop in the quality of the workforce talent—meaning that companies pay the price in more ways than one. In this blog post, we will discuss the top 5 ways that disenfranchised employees are costing your business money.

#1: Lower Productivity

Globally, there’s a high price tag on employee disengagement. In fact, according to Gallup’s 2022 State of the Global Workforce report, disengaged workers cost the world almost $8 trillion in lost productivity—a staggering hit to the global economy.

The reason, however, it somewhat simple: when employees are not engaged in their work or feel undervalued, their motivation to perform diminishes, leading to decreased productivity levels. A lack of enthusiasm and focus from disengaged employees results in longer turnaround times for projects, missed deadlines, and low-quality work, but can also create a negative environment that is not conducive to innovation and creativity. 

#2: Less Revenue

There’s a naturally-occurring connection between productivity and profit, so there should be little surprise that organizations with lower productivity also report lower revenue—to the tune of 20 percent less, according to Gallup. After all, when employees are disengaged, they are less likely to stay on task and complete their work, leading to fewer sales and a drop in profits. 

All in all, employee disengagement can have serious consequences for companies, down to the bottom line. Companies must take steps to ensure their employees are engaged and satisfied with their jobs if they want to maximize their profits and stay competitive in the marketplace.

#3: Higher Absenteeism

When employees are not feeling connected to their work, they may be more likely to take sick days, arrive late to work, or leave early on a regular basis. This absenteeism may be due to a lack of motivation, unhappiness with the job, or even a feeling of apathy towards their duties, but regardless of the reason, companies with disengaged employees are likely to experience 41 percent more absenteeism overall. The challenge is that not only does this loss of “face time” lead to lower productivity, but it also can result in increased costs like overtime wages and medical expenses.

#4: More Safety Incidents

Companies with high employee disengagement may be considered toxic—but they may also be considered hazardous to your health. That’s because those companies are 70 percent more likely to have safety incidents than their engaged counterparts; a cost that results in higher costs for businesses. 

Consider this: when employees feel disengaged and distracted, they may take shortcuts that can put themselves and others at risk, and apathetic staff are far less likely to actively participate in safety training or follow safety protocols. Both instances can lead to hazardous working conditions, increased accidents, and higher liability costs. 

#5: Higher Turnover

In what may be the most visible symptom of a disengaged workforce, these organizations are far more likely to see high employee turnover. Not only do disengaged employees feel less connected to their work and the organization—which makes them more likely to leave—but they may also feel unappreciated and undervalued, leading them to seek opportunities elsewhere. Either way, it’s part of the reason that more than 46 million employees left their jobs last year as part of the ongoing (and never-ending) “Great Resignation.”

Of course, the loss of an employee isn’t an empty budget line; there are true costs associated with that loss, as well. When you consider the turnover, training and onboarding for a replacement, the cost of the search itself, recruiting costs, and added strain on HR and other departments, you’ve got a disaster in the making.

Still, it’s important to realize that not only does turnover affect the bottom line financially, but it can also lead to a lack of knowledge and experience within the organization as a whole, adding to the cycle of reduced productivity and burnout, and further impacting the organization’s performance.


With all the information at our fingertips when it comes to employee engagement, you’d think that most companies are homed in on how to manage and turn around disengagement in their ranks. Unfortunately, the reality is that only about 12 percent of companies are actually looking at engagement as a metric, meaning that the vast majority is still left in the lurch when it comes to how it’s affecting their bottom line. 

Still, there’s good news: If you are finding that your employees are disengaged, unhappy or there’s a general sense of unease floating around the office, L.O.S.T. can help. Get in touch with us today to dig into your challenges and re-engage your employees to a better and more profitable future.