With every business aware of the benefits engaged employees can have on their performance and constantly working to make their team part of the statistic that represents engaged workers, disengagement can at times seem like a distant threat.

However, Gallup’s data shows that only 30% of US employees are actively engaged. Of the remaining 70%, 52% are disengaged and 18% are actively disengaged. What this means for businesses is that, whether they like it or not, the chances are that some of the workforce aren’t engaged and—worse—are actively disengaged.

But is disengagement really as bad as it sounds? In short, yes. In this feature, we explain 6 ways that disengagement could be harming your business.

Absenteeism

The Centers for Disease Control and Prevention (CDC) has found that productivity losses linked to absenteeism cost employers $225.8 billion annually in the United States, or $1,685 per employee.

The cost of employees being off work is not something to be snubbed. Although legitimate sickness is an inevitable cost for any employer, employees who are disengaged are more likely to call in sick to avoid coming to work.

Businesses with engaged employees have recorded a 37% lower rate of absenteeism than those who’ve observed signs of disengagement. Although cutting absence levels by 1/3rd might be ambitious, efforts to boost engagement levels and reduce overall absenteeism that result in even a fraction of this can be a massive saving for your business.

Staff turnover

It’s a fact: disengaged staff are more likely to look around for a better opportunity. Whether employees feel underappreciated or cut off from their manager, any form of disengagement can lead to a high turnover.

And if there’s anything a good employer knows, it’s that your team is the beating heart of your business—to lose them is extremely damaging.

Although—to the untrained eye—replacing an employee can seem like a simple like-for-like swap, that really isn’t the case. The cost of replacing an employee is estimated to be between 90% to 200% of his or her annual salary, not to mention the time that needs to be poured into getting a new team member up-to-scratch!

If you’re noticing a pattern, and employees aren’t sticking around as long as you’d like, it might be time to address your engagement levels. Starting at the source of the problem is the fastest, most effective way to find a solution.

Workforce morale

Disengaged employees don’t wear a badge that tells you their engagement is low, but it is something which can spread within a team like wildfire.

Your employees’ engagement in their day-to-day tasks is the key to a happier workforce—your team needs to feel valued, understand the purpose of their work and have the tools they need to do their job properly. Without this, your team will fall victim to disengagement and workplace morale will suffer.

Noticing the signs and nipping low engagement in the bud is critical here—the longer the issue spreads, the larger the problem and the harder it is to solve.

Productivity

It’s not rocket science—the more engaged your staff, the more productive they’ll be. In fact, highly engaged employees are 38% more likely to have above-average productivity, according to the Workplace Research Foundation.

Staff who are left in the dark about company goals, don’t feel valued and believe  their contribution is insignificant, won’t be as productive as those who are.

Productivity is key to any sustainable business. But it’s only if your team is kept in the loop about company visions and goals that they’ll know what they’re aiming for with their work, and strive to reach the targets set.

Performance

Hand in hand with productivity, the performance of your team is largely determined by their level of engagement.

Research by Dale Carnegie suggests that companies with engaged workers outperform those without by 202%. Alongside the volume of work produced, the quality is also something which is noticeably different.

In company’s where disengagement is present, there’s a risk that the business falls behind its competitors and, with a lower quality of services provided, leaves customers feeling dissatisfied.

Profits

And all of the above patently has a direct impact on profit. From paying for staff who’re off work when they don’t need to be and recruiting new staff to fill the position of old ones to reduced productivity and performance, it all boils down to less profit.

Although overcoming disengagement takes time and resources, it’s critical for any business which wants to be profitable. Increasing employee engagement investments by 10% can increase profits by $2,400 per year, so paying to look out for the signs of disengagement and putting a plan in place to combat it is vital.

This article was supplied by StaffConnect.