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.

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