Understanding the causes of employee disengagement is the first step toward resolving the issue. From a lack of recognition to limited opportunities for growth, identifying and taking action on the reasons for employee disengagement is essential for finding effective solutions and re-engaging your workforce.

In this article, we will explore the extent of employee disengagement and its financial implications, before delving into the factors that contribute to disengagement at work and providing some actionable steps to help you re-ignite enthusiasm among your employees.

Employee engagement refers to an employee's emotional commitment to their work and organization. Engaged employees are enthusiastic about their job, motivated, and committed to the company's success. In contrast, disengaged employees lack these qualities and feel indifferent or even negative about their work.

According to an annual Gallup survey, employee engagement has been falling consistently over the past few years, from 36% in 2020 down to 32% in 2022. The survey also shows that 18% of US employees are now actively disengaged at work.

It’s clear that employee disengagement in today’s workforce is a growing problem, both in terms of emotional wellbeing and workplace productivity. However, what’s less clear is how this translates to business success. To help visualize the scale of the problem, let’s look at the financial cost of disengaged employees when it comes to an organization’s bottom line.

Employee disengagement isn’t just a matter of indifference – the costs for organizations can be eye-watering. In a recent survey, McKinsey found that disengaged employees costs S&P 500 companies $282 million annually in lost productivity. They were also able to highlight the six key contributors to disengagement, including lack of workplace flexibility, lack of career development and an unsupportive work environment.

To put this in perspective, further studies show that disengaged employees have an 18% lower productivity rate and are 15% less profitable than their engaged peers. They are also 37% more likely to take time off work. This means disengaged employees can cost their companies, on average, 34% of their annual salary every year – that’s $3,400 for every $10,000 an employee earns.

On the flip side, organizations with a high level of engagement report 22% higher productivity, and 65% lower employee turnover compared to those with a disengaged workforce. They also report 48% fewer safety incidents and 41% fewer incidents of quality issues, further impacting the bottom line.

So the impact of disengaged employees is clear. But what exactly are the causes of disengagement at work?

Understanding the root causes of disengaged staff is crucial for addressing the issue effectively. Disengagement can stem from a variety of factors, each contributing to an employee's overall dissatisfaction. Here are some of the most common causes of disengagement at work:

Lack of recognition

Recognition and appreciation are the lifeblood of employee motivation and morale. When employees feel that their hard work and dedication go unnoticed or unrewarded, it can be demoralizing. This absence of recognition can then lead to a sense of unfulfillment and disengagement, with employees ultimately losing their enthusiasm and commitment to the job.

This is why recognizing and celebrating employees' achievements, both big and small, is essential for maintaining a motivated and engaged workforce.

Not feeling like they belong

A sense of belonging and inclusion is fundamental to employee engagement. When employees don't feel like they belong to their team or the organization as a whole, it creates a profound disconnect. This isolation can lead to feelings of alienation and disengagement.

Employees who don’t feel like part of the team may hesitate to contribute their best efforts. They may also struggle to connect with their colleagues and managers, further exacerbating their disengagement.

Lack of flexibility

In today's dynamic work landscape, flexibility has become a valuable asset for employees. According to research by CIPD, 71% of workers view a flexible working pattern as important to them when considering a new role, while 69% say they value the ability to work remotely.

Meanwhile, working arrangements that don’t accommodate individual needs run the risk of workplace burnout and disengagement. In fact, as many as 42% of employees who don’t have some form of workplace flexibility, say they would change roles for a job that offered flexible working.

Lack of purpose

Employees like to understand the significance of their work and how it contributes to the organization's goals. If they can’t see a clear link between their efforts and the broader mission of the company, they may question the purpose of their work. This lack of purpose can lead to disengagement as employees struggle to find meaning in their daily tasks.

70% of employees say their sense of purpose is largely defined by their work. It’s easy to see then, how providing a clear sense of purpose and communicating how their role contributes to the organization's success could help to rekindle their enthusiasm and strengthen their commitment to the job.

No opportunities for growth

Professional development and opportunities for growth are essential to employee engagement. Employees who feel they’re lacking opportunities for learning and professional growth may lose motivation, leading to feelings of stagnation and frustration.

Encouraging a culture of continuous learning, offering opportunities for skill development and providing pathways for career advancement can combat this cause of disengagement and empower employees to strive for excellence.

Addressing employee disengagement is a critical task for organizations seeking to maintain a motivated and productive workforce. These strategies can help you re-engage employees, improving wellbeing and productivity.

1. Find out what’s wrong

The first step in re-engaging employees is identifying the root causes of their disengagement. You can do this through surveys, one-on-one discussions, and feedback sessions.

By actively listening to employees' concerns, you can gain a better insight into the specific issues that need addressing.

2. Celebrate success

Acknowledging and celebrating both individual and team achievements is a powerful tool for re-engagement.

Regularly celebrate milestones, whether they’re project successes, work anniversaries, or personal accomplishments. These celebrations create a positive work atmosphere and convey a sense of achievement and recognition, motivating employees to continue making their best efforts.

3. Foster work-life balance

In today's fast-paced work environment, achieving a balance between work and personal life is crucial for employee wellbeing and engagement.

Support your employees by implementing policies that promote work-life balance. This could include flexible work hours, remote work options, or initiatives that help employees manage their workload effectively. When employees can achieve a harmonious work-life balance, they’re more likely to feel satisfied, motivated, and engaged in their roles.

4. Encourage employee wellbeing programs

Prioritizing employee wellbeing not only boosts engagement but also contributes to a healthier and more productive workforce.

Introduce wellbeing programs that focus on physical health, mental health, stress management, and work-related wellness. These could range from fitness initiatives and access to counselling services, to mindfulness activities and stress-reduction workshops.

5. Create clear career pathways

Employees often become disengaged when they feel uncertain about their future within the organization. To address this, create transparent career pathways that outline potential growth opportunities and advancement routes.

Encourage employees to set and work towards career goals within the company. This clarity can rekindle their sense of purpose and motivation to excel, knowing that their hard work can lead to career progression.

6. Ask for and provide feedback

Employee wants and needs are constantly changing. That’s why open and constructive communication is key to keeping employees engaged for the long-term.

Promote a culture of regular feedback and provide opportunities for employees to voice their concerns. Additionally, offer feedback to employees on their performance, helping them understand their strengths and areas for improvement.

Keep reading

• Why is employee engagement important?
• The power of positive relationships at work
• What’s the future of employee experience?