What is the cost of disengaged employees for your business?
Despite “quiet quitting” being a hot topic for discussion and media interest right now, it is actually nothing new. It’s one of the many workplace problems managers have had to deal with over the years.
Quiet quitting used to be known as ‘working to rule’. It is a term describing disengaged employees who are no longer willing to go the ‘extra mile’ or who only put the minimal effort required into their work in order to avoid being ‘on the radar’ for any performance management measures that may risk their employment status. Quiet quitting employees may be especially resistant to change and/or show a reluctance to participate in conversations and team activities. They might have been vocal about their frustrations but are now simply withdrawn. Or they may appear to be engaged and working as normal, but their quiet discontent results in high risk of delivering an ‘unexpected’ resignation.
Why do employees become disengaged?
There are many reasons why employees become disengaged ranging from realities and perceptions related directly to work and/or changes in personal circumstances. Common factors include:
A lack of knowledge or understanding of how that person’s work contributes to the company strategy and success
Lack of meaning or purpose in that person’s work
Toxic work environment
General burnout and/or personal or family health issues competing with work performance expectations
Work stress due to unrealistic expectations or perceived unachievable targets
Lack of growth, learning, and development opportunities
Ineffective management and/or lack of ‘visible’ leadership and/or lack of trust in leaders and managers
General lack of communication or transparency in business operations and employment matters
Perceived inequity or lack of fairness with peers
Dissatisfaction with salary and/or benefits package
Desire for career progression or advancement that isn’t accommodated by current employer
Feeling of being under appreciated
Need for greater work flexibility (hours, location, work pattern, etc)
Need or wish to relocate that isn’t accommodated by current employer
Desire for change of career direction that isn’t accommodated by current employer
When employees start feeling disengaged they are likely to start looking for a new job. However, this is not always the case. Some disengaged employees stay and that can cause other issues. Particularly in affecting the morale and engagement of other employees in the team who grow resentful of having to ‘pick up the slack’ - either to cover for the ‘bare minimum’ work of others, or to cover for disengaged employees who are frequently off work with minor illnesses.
The process of becoming disengaged doesn’t usually happen overnight. However the ability for any team manager to spot early signs may depend on how well you know your existing team and the relationship you have with them as individuals in terms of their personalities, motivators, demotivators, strengths, developments, values, beliefs, etc.
Early indicators of low engagement or disengagement include:
A noticeable change in mood or disposition
Negative changes in the quality or quantity of output
Not taking any initiative, nor supporting on projects, nor getting involved in problem solving
Lack of energy or passion or seeming to be withdrawn
Unusually missing deadlines or making mistakes
A change of attitude towards work, colleagues, or their manager
Reduction or complete unavailability for social activities with people at work or outside of work.
There could however be many reasons for disengagement, so it is critical that managers explore the cause of the behaviours above rather than coming to conclusions. The employee could feel under challenged or they may be naturally introverted. There may be health or family issues that the employee is trying to juggle. Rather than leaping to the conclusion that “quiet quitting” is happening, there are a host of other factors that need exploring before potentially losing a good member of your team.
Why is it important to have highly engaged employees?
Low engagement and disengaged employees cost industry billions of dollars each year in lost revenue, reduced profits, increased customer churn; in addition to the associated costs for absenteeism, presenteeism and high staff turnover.
According to Gallup’s State of the Global Workplace: 2022 Report “..employees who are not engaged or who are actively disengaged cost the world $7.8 trillion in lost productivity…. That's equal to 11% of global GDP”
When employees are engaged, they are committed to the work they perform, the organisation, and the company goals. They have an understanding of how their work and what they do impacts the success of the business. Engagement is a psychological commitment to the organisation to be mentally as well as physically ready for action.
Ensuring your teams remain highly committed to their work and the organisation will help to improve top talent attraction and retention, encourage loyalty, increase organisational performance, boost customer satisfaction and retention, and will help to provide stakeholder and shareholder value.
““Employees who believe that management is concerned about them as a whole person - not just an employee - are more productive, more satisfied, more fulfilled. Satisfied employees mean satisfied customers, which leads to profitability.” ”
Increased productivity = increased sales and profitability
Improved customer service and satisfaction = improved customer retention
Happy and positive employees = reduced absenteeism and presenteeism
Investment in people and creating a positive work environment = improved mental health and commitment to safe and positive workplace practises
Engaged and performance focused employees = improved retention and reduction in turnover costs
How can you prevent quiet quitting?
Ensuring engaged employees is not a fluffy HR concept, nor a passing trend, nor an intangible or immeasurable business theory. There are repeated studies showing how employee engagement is critical for business success, competition, and sustainability.
There’ is however, no ‘one size fits all’ management style that will result in highly engaged teams. It’s a complex, and multi-layered approach to ensuring employees remain highly engaged; inclusive of commitment to cultures for robust talent attraction and retention strategies, diversity and inclusion, continuous learning and development, plus coaching and mentoring.
Aside from a range of survey tools designed to alert leadership teams to current employee engagement levels and risks, the use of exit interviews, performance management tools, attendance & absenteeism data, staff social media comments, and daily or weekly “check ins” between management and employee provide ‘real time’ opportunities to monitor and take action on levels of employee engagement.
Common factors that will help maintain and/or improve employee engagement include:
Transparent leadership and management
Building trust with a commitment to acting with integrity
Promoting strong working relationship and promoting an open and honest culture
Clear direction and expectations of roles and responsibilities
Showing appreciation, commitment to reward and recognition
Excellent internal communication and allowing employees to have a voice in decisions that affect them
Managing teams is now more challenging than ever and this is magnified due to many teams now working remotely which brings other challenges for communication, measuring performance, productivity, resolving conflict, solving problems, etc. With these challenges, getting employee engagement right is more important than ever before.
Good people managers understand that it is part of their own day to day jobs to manage their teams effectively. They usually understand that highly engaged teams help to ensure harmonious and productive work environments. But when engagement becomes a part of a company’s DNA, or a “this is how we do things here” mindset, it’s a powerful advantage that that yields greater financial returns, increased competitiveness, and all the benefits of being an employer of choice.
About the Author
Leanne Morris is well known as a both an outspoken advocate and critic of the HR profession. With long standing networks across 94 countries in all specialist areas of the function, and a multi- continent work history, she is a sought after subject matter expert on international HR hiring trends and HR hiring best practice.