Do you know how much Employee Engagement / Disengagement is costing your organisation?

According to the Global Workforce Study, Towers Perrin found that 4 out of 5 employees are not reaching their full potential and 4 out of 10 workers are disengaged.

As a guide, I have developed the below table which provides a summary of what a ‘Highly Engaged’, ‘Engaged’, ‘Somewhat Disengaged’ and ‘Disengaged’ employees looks like.

Reference: The Dollars and Sense of Employee Engagement, Domenic Jones 2012

So, how much is it costing your organisation?

Gallup, 2002 says that a disengaged employee is actually costing an organisation approximately $3,400 for every $10,000 paid in salary.

The Human Capital Institute put together a model of what engagement and disengagement could be costing your organisation. A typical distribution pattern is 12% fully engaged, 40% engaged, 39% somewhat disengaged and 9% fully disengaged.

Here are two ways of calculating disengagement in your workplace:-

Both of the calculations generally say pretty much the same thing and that is…..that disengagement is costing organisations A LOT OF MONEY!

So what drives employee engagement?

There are a lot of opinions and information on employee engagement however they tend to highlight similar things.

In summary, the top 12 drivers of employee engagement are:-

1. Good relationship with supervisor (direct line manager)
2. Effective Performance Management / Feedback Programs
3. Senior management interested in employee’s well-being
4. Ability to utilise skills and are provided with challenging work assignments
5. Improve capabilities through investment in training/development
6. The organisation’s reputation and involvement outside the organisation ie social responsibility
7. Input into decision-making in my department
8. Provision of meaningful work
9. Organisations ability to quickly respond and resolve customer and employee concerns
10. Career advancement opportunities (and examples in the workplace)
11. The organisation encourages innovative thinking
12. Understanding of employer vision/future and their impact ie involvement in making that happen

Triggers of Job Churn according to SEEK (Industry Summary Group 2, 2011):-

1. Bad Management
2. I don’t feel appreciated at work
3. I wanted a new challenge
4. I was bored
5. Made redundant
6. Too much stress
7. I had a poor work-life balance
8. I was bullied
9. Poor corporate/company culture
10. For a better package and benefits
11. For a more senior position
12. Access to training or skills development

So how can BespokeHR help your organisation?

What is Employee Engagement/Disengagement costing your organisation?

The good news is what you can measure you can manage. The Corporate Leadership Council found that up to 76% of employees are ‘up for grabs’ in terms of engagement which means that organisations have the opportunity to influence either a positive or a negative engagement and significantly increase the productivity and retention of their staff.

The business purpose of BespokeHR is to help businesses Maximise Productivity, Potential and Profit by partnering with you to provide an end-to-end HR Solution that allows you to save time, focus on running your business and deliver results!

In relation to Employee Engagement, we can help you with:-

RECRUITMENT

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• Getting the right fit from the beginning

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HUMAN RESOURCES
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• Performance Management – assisting you build (and/or implement) effective performance management programs to ensure regular feedback on performance
• Culture Assessments – identifying current position and building future culture goals
• Psychological Assessments – understanding individual members and their teams better
• Stay Interviews – why are people staying with the organisation and how long do they plan on spending in the company?
• Role Clarity – helping provide clear expectations for employees
• Wellness Programs – helping establish relevant wellness programs
• Succession Planning – helping understand career pathways and opportunities for your organisation
• Knowledge Management – how is knowledge documented and transferred in the organisation?
• HR general policies/procedures – how does your organisation address grievances or encourage innovative ideas?
• Conferences – assistance in motivating and building an aligned vision

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TRAINING
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• Offering world-class training programs for managers in the areas of leadership, sales, personal effectiveness and psychology of success

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COACHING
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• Providing coaching for management and executive members to build personal goals, upskill and build accountability

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For a confidential, obligation-free meeting to explore your options, we invite you to contact BespokeHR Managing Director, Paulette Kolarz directly on 0412 393 068

WHAT ARE YOU WAITING FOR?