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4349 The World without Bankruptcy Laws

Bankruptcy is one of the natural states which a company may find itself in. Entrepreneurship is primarily about taking risks. When companies take risks, some of them succeed, whereas others fail. Hence failure is a natural part of the business. However, many critics of bankruptcy laws believe that there isn’t a need for an elaborate […]

4348 The Wirecard and Infosys Scandals are a Lesson on How NOT to Treat Whistleblowers

What is the Wirecard Scandal all about and Why it is a Wakeup Call for Whistleblowers Anyone who has been following financial and business news over the last couple of years would have heard about Wirecard, the embattled German payments firm that had to file for bankruptcy after serious and humungous frauds were uncovered leading […]

4347 Why the Digital Age Demands Decision Makers to be Like Elite Marines and Zen Monks

How Modern Decision Makers Have to Confront Present Shock and Information Overload We live in times when Information Overload is getting the better of cognitive abilities to absorb and process the needed data and information to make informed decisions. In addition, the Digital Age has also engendered the Present Shock of Virality and Instant Gratification […]

4346 Why Indian Firms Must Strive for Strategic Autonomy in Their Geoeconomic Strategies

Geopolitics, Economics, and Geoeconomics In the evolving global trading and economic system, firms and corporates are impacted as much by the economic policies of nations as they are by the geopolitical and foreign policies. In other words, any global firm wishing to do business in the international sphere has to be cognizant of both the […]

4345 Why Government Should Not Invest Public Money in Sports Stadiums Used by Professional Franchises

In the previous article, we have already come across some of the reasons why the government should not encourage funding of stadiums that are to be used by private franchises. We have already seen that the entire mechanism of government funding ends up being a regressive tax on the citizens of a particular city who […]

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History records how Alexander was able to march on and conquer hitherto unknown lands due his valour and his motivated troops. However, the same history also records, how dissent amongst his troops towards the latter part of his career, cut short his ambitions of supremacy in Asia.

Alexander started hiring more outsiders, laying off his tired troops and more significantly punishing open feedback by his men. His actions, at the latter part his conquest, were in stark contrast to his initial techniques which had been successful in fostering a sense of belonging among his men. This led to dissent and ultimately dealt a huge blow to Alexander’s aspirations.

In today’s business context, let us look at the cost of a disengaged workforce to better understand the significance of employee engagement.

Cost of Disengaged Workforce

The findings of the Gallup Study of 2008 show that while the engaged employees believe they can contribute to company’s growth, the disengaged employee believes otherwise, i.e. his job does not contribute to the organization. This belief of the disengaged employee creates a negative spiral that affects his work, co-workers, customers, productivity, and eventually both happiness of employee and company performance. Some effects are illustrated below:

  1. Effect on Work - The disengaged employee tries to evade work, struggles to meet deadlines and is reluctant to accept additional responsibility.

  2. Effect on Co-Workers - The negativity of a disengaged employee, demonstrated either through raves and rants or complete withdrawal from participation, affects the team morale. After all who has not heard of the proverb - one bad apple can spoil the whole bunch.

  3. Effect on Customers - Every employee, whether an organization likes it or not, becomes its ambassador. And a disengaged employee either by actively de-selling the organization, or by complete apathy towards their work, product, process, organization help create disengaged customers.

  4. Effects on Productivity - Disengaged employees seldom push themselves to meet organizational goals let alone contribute to innovative practices at workplace. Since, they do not believe that their work contributes to the organization; they evade completing tasks thereby affecting team productivity.

  5. Effect on Company Performance - In the corporate world, time is money and organizations must innovate to stay relevant. A disengaged workforce by virtue of delayed completion of tasks and inability to improvise and innovate cost the company dollars which ultimately affects bottom line. This has been validated by a Gallup Study whose research showed that costs of disengaged workforce in the United States was upwards of $300bn annually.

  6. Effect on Personal Life of Employee - A disengaged employee is seldom able to shake off the lethargy and perform in the current organization or land a job of preference. This leads to pent up frustration which may ultimately affect his personal and family life.

Benefits of an Engaged Workforce

An engaged workforce form an emotional connect with the organization that helps them

  1. Go the Extra Mile to Achieve Individual and Company Success
  2. Innovate at Workplace
  3. Attract customers and employees
  4. Become Evangelists of the company, its product and processes
  5. Infuse energy and positivity at workplace.

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