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The High Costs of Employee Disengagement

Chances are your organization's largest investment is its employees, especially when fixed costs, such as compensation and benefits, are added together with the multitude of variable expenses. Determining if you are getting a good return on your investment is imperative to the long-term success of your business, but there is a hidden factor which must be considered in the equation – disengaged employees.

As reported in a 2012 Gallup Poll, 70% of employees are not engaged or are actively disengaged. This finding has serious – and costly – implications, as these employees, according to Gallup, cost businesses an estimated $450 to $550 billion annually. And the Corporate Leadership Council estimates that lower engagement results in a four-fold increase in turnover which compounds the cost of employee disengagement.

If you suspect your business has an engagement problem, ensuring your employees are treated fairly and respectfully is the first step toward a solution, especially since a Harvard Business Review article noted that roughly 50% of employees report they are treated rudely at work at least once a week. Creating policies and providing general HR training can help, but they generally do not go far enough to address the disrespectful and uncivil behaviors that contribute to employee disengagement. Our attorneys are experts in developing and conducting training solutions that address the specific challenges associated with disengaged and unhappy employees.

If you would like to discuss how we can help with your employee disengagement problem, please respond to this email or contact your Elarbee Thompson attorney.

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