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Costs Of Poor Employee Engagement



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By : Joe Maldonado   

Copyright (c) 2012 Joe Maldonado

Employee engagement is one very essential aspect of any business. People generally think that if the employees are happy, the business will perform well. This is a wrong notion because studies reveal that even when employees are happy and satisfied, the company performs poorly. The major reason for this is that employees who are happy and satisfied will complete their work as per their job description and they will not go beyond that. However, it has been found that the employees who are engaged can actually increase the performance of the company and the profitability because the employees will go beyond their regular job description to achieve and attain the company goals. As a result of this, the engaged teams are expected to be two time more efficient than those who are not engaged and the engaged teams are thrice more probable to achieve their targets than those who are not engaged.

Employee engagement must not be disregarded because this is a valuable asset for any business. When the employee engagement is disregarded, there can be a number of costs that the company will have to bear. The costs of poor engagement can be summarized as below:

- With poor employee engagement, the demand on HR increases and this can lead to frustrations for HR as well as the scope of error and paperwork increases.

- The communication between the employees and the managers become less effective.

- It becomes difficult for the company to attract new talents for hiring.

- The probability of accidents at workplace increases.

- With less employee engagement, the employees become less productive.

This never ends here. There is always a spillover effect which has even bigger consequences. The effect shows over on the customers. There is a direct link between customer and employee engagement. The more the employee engagement, the greater is the customer engagement. This means that if the employees of the company are disengaged, there will be more and more disengaged customers which means more unsatisfied customers. So, it is in the best interest of any company to increase the employee engagement. So, who is going to do that? The managers are responsible for increasing employee engagement and it is the managers who actually destroy the same. The managers are responsible for the disengagement of the employees because of the following reasons:

- Managers do not assess properly whether an employee will fit in properly or not in the given job role.

- Employees generally underperform because the managers speak bad about the employees behind them.

- Managers often accept bullying and bad behavior from employees.

- Employees are often not treated with respect as well as dignity by the managers and this brings down the moral of the employees.

- Managers somehow think that the employees are machines and hardly give them the time to recoup and refill.

- Internal competition is fostered more than the marketplace competition

- Managers often fail to celebrate the success of the team with the team members.

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