COST OF DISENGAGED EMPLOYEES

Employee engagement is a huge issue for companies big and small. Low engagement plagues many companies, dragging down productivity, hurting the bottom-line, and often making work environments themselves a drag. Engaged employees are far more productive than their disengaged counterparts.

In a study of 25,000 executives and employees, it was found that: A mere 30% of US employees are engaged, committed to doing a good job; 50% of employees merely put their time in; and 20% are counterproductive, negatively influencing coworkers, missing days at work and driving customers away through poor service. The 20% of counterproductive employees alone cost the USA economy about half a trillion a year.

Chan Kim and Renée Mauborgne have developed a tool to estimate the cost of disengaged employees in your organization. This provides you a rough estimate of the minimum annual benefit you can achieve in your leadership strength by applying blue ocean leadership in your organization.

A. Enter your number of employees
B. Multiply A by your estimate of the average annual salary of employees in your company. As a guide, for American companies, a reasonable estimate is $30,000 (1)
C. Multiply B by 20% (2)
______________Employees
______________ $/Annum
______________ $/Annum

(1) This provides a rough estimate of the minimum annual benefit you can achieve by creating a step-change in your leadership strength by applying blue ocean leadership in your organization.

(2) This is a reasonable approximate average salary plus benefits in the U.S. These numbers for most countries can be ascertained online if the actual average annual salary of your organization cannot be secured.

© Chan Kim & Renée Mauborgne. All rights reserved.

    The Blue Ocean Strategy Practitioner Program

    Shift your strategic perspective, apply blue ocean tools to your business, and unlock new growth opportunities.

    "The Blue Ocean Strategy Practitioner Program was an enlightening journey for me. It equipped me with tools to approach market challenges creatively."

    A 6-week live virtual program that helps business owners, senior leaders, and consultants move from strategic uncertainty and mounting competitive pressure to clarity, confidence, and a compelling strategy that stands out in the age of AI.