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Ignoring Employee Engagement Is Costly For Your Business

Picture your team as an orchestra. The outcome will only be harmonious when everyone is completely invested and in sync. Now imagine what will happen when key players feel ignored, undervalued, or disconnected. The music will be out of sync, there will only be disjointed noises. Similarly, in today’s competitive business landscape, neglecting employees, their needs, and interests can impact business performance adversely. Yes, we are talking about employee engagement, not because it’s a trendy buzzword but a critical factor in a company’s success.

Now if you think that by organizing an annual party and monthly employee engagement activities you’re doing well, then let us tell you that just 20%(1) of employees worldwide are engaged at work. Clearly, employee engagement is more than organizing a few activities now and then.

Let’s begin with the basics first. The emotional dedication that an employee has to his/her company and its objectives is known as employee engagement. When employees are emotionally invested in the company’s success, they are more than passive participants at the workplace, fostering a more motivated, productive, and loyal workforce, ultimately leading to greater profitability and success.

Companies with high employee engagement rates are 21% more profitable than their peers.(2)

Why Ignoring Employee Engagement Is Costly For Your Business

Now that you know the benefits of investing in employee satisfaction, let’s take some statistics to understand the relationship between lack of engagement and its impact on business:

1.  77% of employees are thinking of quitting their jobs in 2024.(3)

77 percent Employees feels Lack of Recognition at Workplace - CT

We genuinely hope your employees are not amongst those considering leaving their jobs!

It’s important to understand that changing jobs is not always about money. 86%(4) of millennials would take a pay decrease to work at their dream job, and 23% of job seekers wouldn’t require a pay raise to assume a new role.(5)

2.  Every year, disengaged employees contribute to an estimated annual loss of productivity ranging between $450 billion and $550 billion.(6)

Ok, that’s huge! You can’t afford to let your employees ‘quit before quitting.’

Employee engagement and productivity go hand in hand. It’s simple, when employees show up to work with a lack of motivation and commitment to perform their roles, all you can expect is reduced productivity, lower quality of work, and increased absenteeism. These factors collectively contribute to significant financial losses for organizations.

3.  Companies experiencing low employee engagement scores observe an 11% decline in customer metrics.(7)

11percent Decline in Customer Metrics - CT

When employees are disengaged, their motivation to provide excellent customer service diminishes. They are less attentive, less responsive, and less willing to go the extra mile to meet customer needs. Forget giving extra effort disengaged employees are more likely to make mistakes and provide inconsistent service, costing you a negative customer experience.


4.  79% of employees cite a lack of recognition from leaders as a key reason for quitting their jobs.(8)

When employees don’t receive recognition for their hard work and contributions, they feel undervalued. Moreover, employees often view recognition as a sign of their potential for career growth. When leaders fail to acknowledge their achievements, employees may feel their hard work will not lead to advancement opportunities. This poor employee experience can push them to look for new opportunities elsewhere.

5.  69% of managers feel uneasy when communicating with their employees.(9)

5. 69% of managers feel uneasy when communicating with their employees - CT

When organizational expectations and communication protocols are not clearly defined, managers may feel uncertain about how to approach different situations. This uncertainty can lead to discomfort in their interactions with employees. Either they worry that involving employees a lot in decisions could undermine their authority or they are concerned about how employees will react to their communication, especially if it involves negative feedback.

6.  70% of high-retention-risk employees plan to depart their organization because they perceive a lack of opportunities for future career growth.(10)

A career advancement could mean both- promotions as well as development. If promotions are rare, employees may feel that their career growth is stagnant. If there are fewer or no training and development programs, employees may not acquire the necessary skills to keep up with industry changes. This can hinder their ability to perform effectively and reduce the overall competitiveness of the organization.

7.  32% of employees identify a lack of employee ownership as the primary barrier to engagement.(11)

Innovation and creativity can be stifled by micromanagement. Employee engagement goes for a toss when employees perceive that they have little control over their work. In fact, it can affect team dynamics also. When individuals don’t take responsibility for team outcomes or support their colleagues proactively, collaboration suffers.

Decoding The Causes Of Lack Of Engagement

Decoding-the-Causes-of-Lack-of-Engagement - CT

After studying the above statistics, we have created a list of primary reasons for the lack of employee engagement. Don’t worry, we have given the solutions to each of the issues alongside.

  1. Lack of Recognition:

  • Develop a formal recognition program that acknowledges employees’ achievements, no matter it’s a big one or a small one. This could include employee of the month awards, spot bonuses, or acknowledgments during meetings.
  • Celebrate milestones from birthdays and work anniversaries to project completions and team successes.
  • Encourage a culture of peer-to-peer recognition where colleagues can acknowledge and appreciate each other’s efforts.
  1. Inadequate Growth Opportunities:

  • Offer a variety of training and development programs to enhance employees’ skills and knowledge. This could include workshops, seminars, online courses, certifications, and cross-functional training opportunities.
  • You must also promote internal job postings and encourage employees to apply for positions that align with their career goals and interests.
  • Establish clear career paths for different roles within the organization. Outline the skills, experience, and competencies required for advancement.
  • While money isn’t everything when it comes to engagement, fair and competitive compensation is essential. So, regularly reviewing and adjusting salaries and benefits is also crucial.
  1. Lack of Autonomy:

  • One of the best ways of employee empowerment is to give decision-making authority to employees whenever possible.
  • Encourage employees to experiment with new ideas, solutions, and approaches to problem-solving.
  • Focus on monitoring outcomes and results rather than micromanaging the methods employees use to achieve them.
  • We don’t mean that you should avoid supervising them or providing support. Rather, we would suggest you to offer guidelines, frameworks, and support to help employees make informed decisions.
  1. Poor Communication:

Poor Communication - Channel Technologies

  • Have an open-door policy to foster a culture where employees feel comfortable sharing ideas, concerns, and feedback.
  • Be transparent about decision-making processes, organizational changes, and challenges.
  • Provide training to employees of all levels in areas like business communication, active listening, and conflict resolution.

Here’s an additional tip – Start holding monthly town hall meetings where leaders share updates, discuss company performance, and openly address employee questions and concerns.

Ready to Get Started?

All of this might seem like a lot, but start small and build from there. Listen to your team’s inputs before you make your employee engagement plan and tweak as you go. Remember, not everything needs to be implemented at once. The goal is to create a workplace where people feel valued, supported, and excited to come to work each day.

So there you have it- employee engagement initiatives are the key to a more contented and effective team. There are many methods to show your staff that you care, from acknowledging accomplishments and making investments in their development to encouraging wellness and creating a happy work atmosphere. After all, employee engagement programs are about more than just perks—they’re about creating a culture where everyone feels they belong and can do their best work.

Now, you have enough knowledge of why employee engagement matters in business and what are some key strategies to boost employee motivation. So, roll up your sleeves and get started on making your workplace amazing! Your team—and your bottom line—will thank you.

Meanwhile, if you are interested to know technology’s role in employee engagement, read our other blog.

Looking for an Event Management Company in India to help you engage your employees in the most innovative ways? Leverage our 25+ years of experience. Get in touch!


Employee engagement is crucial to performance as it boosts productivity, enhances job satisfaction, and reduces turnover. Engaged employees are more committed and motivated, resulting in better quality of work. Companies seeking success must invest in employee engagement.

An employee engagement program is a structured initiative designed to boost employees' commitment and motivation. It is done through activities, recognition, and feedback mechanisms. The main aim is to enhance job satisfaction and align personal goals with organizational objectives.

Lack of employee engagement leads to decreased productivity, higher turnover rates, and poor job satisfaction. All of these aspects can lead to lower morale of employees, increased absenteeism, and a decline in the quality of work in the long run. Ultimately, the overall organizational performance and profitability go for a toss.

To overcome low employee engagement, it is important to foster open communication and actively listen to employees' concerns. Some of the best ways to do this is to provide recognition, rewards, and opportunities for professional growth and create a positive work environment that promotes work-life balance and involves employees in decision-making.


  • Ajay Manchanda

    Ajay Manchanda is a seasoned expert with over 30 years of experience in sales, marketing, and channel management across various industries. An alumnus of Delhi University and FMS Delhi, Ajay has a deep understanding of the dynamics of SMEs and distribution channels. His keen insights and strategic approach have driven significant growth and efficiency for numerous businesses. Ajay shares his wealth of knowledge and practical advice on marketing strategies, and channel management techniques that can help drive businesses forward.

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