The Hidden Toll Calculating the True Cost of Disengaged Employees

Employee engagement is a critical factor in the success of any business, regardless of its industry or size. When employees are actively engaged in their work, they tend to be more productive, motivated, and satisfied with their jobs. However, disengaged employees can have a significantly negative impact on a company's bottom line.


Posted by: Sammy Mills

In this article, we explore the costs associated with disengaged employees, with a focus on three specific industries: manufacturing, retail, and healthcare services. We also introduce a solution that can help mitigate these costs and boost employee engagement.

The Cost of Disengaged Employees

1. Decreased Productivity

One of the most significant costs of disengaged employees is decreased productivity. Research consistently shows that disengaged employees are less likely to put in their best effort at work. They may procrastinate, take longer breaks, and often produce subpar results. This lack of productivity can result in missed deadlines, lower output, and decreased profitability for the business.

2. Increased Errors and Defects

Disengaged employees are more prone to making errors and defects in their work. According to studies, they cause a staggering 60% more errors and defects in their performance compared to their engaged counterparts. These errors can lead to quality control issues, customer complaints, and even product recalls in manufacturing and healthcare sectors.

3. High Turnover Rates

Disengaged employees are unhappy in their roles and are actively seeking new job opportunities. In fact, 73% of actively disengaged employees are on the lookout for new jobs or opportunities, according to research. High turnover rates can be incredibly costly for businesses, as they have to invest time and resources in recruiting, onboarding, and training new employees.

4. Negative Impact on Company Culture

Disengaged employees can also have a negative impact on company culture. Their lack of enthusiasm and motivation can spread to other team members, leading to a toxic work environment. This can further increase turnover rates as engaged employees may seek to leave to escape the negative atmosphere.

Industry-Specific Implications

Now, let's delve into the industry-specific implications of disengaged employees:

1. Manufacturing

In the manufacturing sector, disengaged employees can result in a higher number of product defects and quality control issues. This can lead to costly recalls, damage to the brand's reputation, and a loss of customer trust. Additionally, reduced productivity can result in longer production times, impacting delivery schedules and customer satisfaction.

2. Retail

In the retail industry, disengaged employees can lead to poor customer service and decreased sales. Unmotivated employees are less likely to provide exceptional service, which can deter customers from returning. Moreover, increased turnover rates can result in higher recruitment and training costs, further impacting the bottom line.

3. Healthcare Services

In healthcare services, disengaged employees can put patient safety at risk. Errors and defects in medical procedures or record-keeping can have severe consequences. Moreover, high turnover rates can disrupt patient care continuity and increase staffing costs.

OurPeople: A Solution to Boost Employee Engagement

To address the issue of disengaged employees, companies in manufacturing, retail, and healthcare services can turn to solutions like OurPeople. OurPeople is a comprehensive communication and engagement platform designed to increase workplace productivity, boost team knowledge, and deliver crucial information to employees.

Key Benefits of OurPeople:

1. Increase Workplace Productivity: OurPeople provides a centralised platform for communication and task management, ensuring that employees stay on top of their responsibilities and collaborate effectively.

2. Boost Team Knowledge: With OurPeople, businesses can easily share important information, training materials, and updates with their teams, ensuring that employees are well-informed and equipped to perform their roles.

Josh Schultz, Franchise Partner, Pure Barre:

"It is a lifeline to our staff and makes sure everyone is still included, is part of the team, and has as much information as they need to be able to perform their jobs in an ever-changing environment.”

3. Deliver Crucial Information: The platform allows for real-time communication, making it easier to disseminate critical information, whether it's related to safety protocols in manufacturing, promotions in retail, or patient care updates in healthcare services.

Kate Beynon, Head of HR, Folly Farm:

“I would certainly recommend OurPeople to anyone who wants to increase their engagement and communication with their team."

4. Reach Everyone with One Tool: OurPeople ensures that all employees, regardless of their role or location, have access to essential information and can engage with their teams and superiors seamlessly.

Krista Fox, Nelbud:

"Disengaged employees touch every part of our business and customers.  We rely on every one of our employees for our company profits and employees who are not engaged directly impact our bottom line.  With employees in the field every day, OurPeople has helped to bring employees from different states together with an avenue to chat directly with their co-workers and dramatically improve our company communication and ultimately engagement."

Enhance Employee Engagement with OurPeopleAI

In addition to the benefits of OurPeople, businesses can take their efforts to enhance employee engagement a step further with the incorporation of OurPeopleAI. It grants customers access to tools that enhance the employee experience, making it easier for users of all backgrounds to craft compelling content, foster organisational transparency, and streamline the dissemination of crucial company updates.

With integrated AI capabilities, OurPeopleAI is poised to lead the way in fast, targeted, and engaging business communications. By harnessing the power of artificial intelligence, OurPeopleAI can also identify disengaged employees by analysing their interaction patterns and performance metrics. This proactive approach allows organisations to intervene promptly, offering personalised content, training, or support to re-engage these employees.

In essence, OurPeopleAI is the game-changer that helps businesses rekindle the spark of enthusiasm and motivation among their employees, ultimately leading to a more thriving and productive workplace.

Disengaged employees can have a significant and costly impact on businesses in various industries, including manufacturing, retail, and healthcare services. Decreased productivity, increased errors, high turnover rates, and a negative company culture are some of the consequences of disengagement. To mitigate these costs and boost employee engagement, companies can consider implementing solutions like OurPeople, which provide a streamlined way to communicate, collaborate, and keep employees informed, ultimately leading to a more engaged and productive workforce. In doing so, businesses can improve their bottom line and create a more positive and thriving workplace environment.