Companies bleed $90m in productivity due to employee disengagement

Addressing 6 key factors for disengagement could save firms about $56m.

Companies lose some $90m in productivity annually due to employee disengagement, McKinsey estimated.

In a report, McKinsey found more than half of employees reported being dissatisfied at work. The report surveyed more than 14,000 employees.

A total of 10% were categorised as Quitters, or the least satisfied and least committed, 12% were Disruptors, or those who have dismal satisfaction and commitment rates, and 33.5% were Mildly disengaged workers, or those who have below-average commitment and performance levels.

Around 5% were Double-dippers, or full-time salaried workers who hold at least two jobs, 40% were Reliable and committed workers, and 4.5% were Thriving stars.

The leading cause of employee disengagement is inadequate total compensation (12%), and the lack of meaningful work (12%).

This is followed by the lack of workplace flexibility (11%), the lack of career development and advancement (10%), unreliable and unsupportive people at work (9%), and unsafe workplace environment (9%).

“Prioritising these 6 factors could help companies annually save more than 60% (estimated $56m) of potential lost value,” the report read.