How Much Money Are Your Employees Costing Your Business?
by Lois Moncrief
by Lois Moncrief
Gallup Management Journal Survey
A recent ( October 12, 2006) Gallup Management Journal (GMJ) survey of U. S. Workers classified employees into 3 types:
"Engaged - Employees work with passion and feel a profound connection to their company. They drive innovation and move the organization forward."(29% of US workers are "engaged" according to the GMJ survey)
"Engaged - Employees work with passion and feel a profound connection to their company. They drive innovation and move the organization forward."(29% of US workers are "engaged" according to the GMJ survey)
"Not-Engaged - employees are essentially "checked out". They're sleepwalking through their workday, putting time - but not energy or passion - into their work."
(56% of US workers are "not-engaged" according to the GMJ survey)
(56% of US workers are "not-engaged" according to the GMJ survey)
"Actively Disengaged - employees aren't just unhappy at work; they're busy acting out their unhappiness. Every day, these workers undermine what their engaged coworkers accomplish." (15% of US workers are "actively disengaged" according to the GMJ survey)
Further, "GMJ's 2006 Q2 survey found that, of all U.S. Workers 18 or older, about 20.6 million - or roughly 15% - are actively disengaged. Gallup estimates that the lower productivity of actively disengaged workers costs the U.S. Economy about $328 billion."The $328 billion were average data points collected quarterly Q4 2000 through Q3 2002 and then every other quarter thereafter from 2003-2006 so the cost is fairly consistent at $328 billion over those quarters from 2000-2006. Source: Gallup Management Journal, "Gallup Study: Engaged Employees Inspire Company Innovation" October 12, 2006.
http://gmj.gallup.com/content/24880/Gallup-Study-Engaged-Employeees-Inspire-Company.aspx
If you take $328 billion and divide it by 20.6 million actively disengaged workers, you find each "actively disengaged" worker costs his company an average of $15,922.00.
According to a recent press release (April 16, 2009) from the U.S. Dept. of Labor Bureau of Labor Statistics, the usual weekly earnings of wage and salary workers for the first quarter of 2009 are: "Median weekly earnings of the nation's 100.2 million full-time wage and salary workers were $738 in the first quarter of 2009."
http://www.bls.gov/news.release/wkyeng.nr0.htm
$738 x 52 weeks gives $38,376.00 per year for a median salary or wage .
The Median "Actively Disengaged" Worker Costs His Company 41% of His Wages in Lost Productivity
For the actively disengaged worker with a median salary of $38,376.00, $15,922.00 is 41% of his salary or wages. So that worker is costing his company 41% of his salary or wages.
15% of U.S. Workers are "Actively Disengaged" Costing the U.S. Economy $328 billion
Further, "GMJ's 2006 Q2 survey found that, of all U.S. Workers 18 or older, about 20.6 million - or roughly 15% - are actively disengaged. Gallup estimates that the lower productivity of actively disengaged workers costs the U.S. Economy about $328 billion."The $328 billion were average data points collected quarterly Q4 2000 through Q3 2002 and then every other quarter thereafter from 2003-2006 so the cost is fairly consistent at $328 billion over those quarters from 2000-2006. Source: Gallup Management Journal, "Gallup Study: Engaged Employees Inspire Company Innovation" October 12, 2006.
http://gmj.gallup.com/content/24880/Gallup-Study-Engaged-Employeees-Inspire-Company.aspx
Each "Actively Disengaged" Worker Costs His Company About $15,922.00
If you take $328 billion and divide it by 20.6 million actively disengaged workers, you find each "actively disengaged" worker costs his company an average of $15,922.00.
U. S. Department of Labor Bureau of Labor Statistics Press Release April 16, 2009
According to a recent press release (April 16, 2009) from the U.S. Dept. of Labor Bureau of Labor Statistics, the usual weekly earnings of wage and salary workers for the first quarter of 2009 are: "Median weekly earnings of the nation's 100.2 million full-time wage and salary workers were $738 in the first quarter of 2009."
http://www.bls.gov/news.release/wkyeng.nr0.htm
$738 x 52 weeks gives $38,376.00 per year for a median salary or wage .
The Median "Actively Disengaged" Worker Costs His Company 41% of His Wages in Lost Productivity
For the actively disengaged worker with a median salary of $38,376.00, $15,922.00 is 41% of his salary or wages. So that worker is costing his company 41% of his salary or wages.
How Much Are Your "Actively Disengaged" Workers Costing You?
How many actively disengaged workers do you have working for you?
What % of their salaries is your company losing every year?
How much are they costing your company?
How long can your company afford to go on before you deal with your actively disengaged workers?
What if, instead of costing you $15,922.00 in losses, you could either get that worker to contribute productively his share to the company or if not, he's out the door?
In fact, what if you could do that with each of your 15% "actively disengaged" employees?
What if you could move the 56% of "not engaged" employees you have into the top group of "engaged" employees making the "not engaged" employees more productive?
How can you use the top group of your 29%" engaged employees" to bring your other employees' production up?
What % of their salaries is your company losing every year?
How much are they costing your company?
How long can your company afford to go on before you deal with your actively disengaged workers?
What if, instead of costing you $15,922.00 in losses, you could either get that worker to contribute productively his share to the company or if not, he's out the door?
In fact, what if you could do that with each of your 15% "actively disengaged" employees?
What if You Could Make the 56% of "Not Engaged" Employees You Have More Productive?
What if you could move the 56% of "not engaged" employees you have into the top group of "engaged" employees making the "not engaged" employees more productive?
How can you use the top group of your 29%" engaged employees" to bring your other employees' production up?
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