Costs Of Disengaged Employees


We pulled together a small list of the numerous costs of disengaged employees. Health, productivity, and loyalty factors effect the profitability of labor.

INDUSTRY AVERAGES

  • Of the approximately 100 million people in America who hold full-time jobs, 30 million (30%) are engaged and inspired at work (Gallup 2012).
  • Of those 100 million, 25% of the best managed teams have nearly 50% fewer accidents and have 41% fewer quality defects (Gallup 2012).
  • Disengagement costs the U.S. an estimated $450 billion to $550 billion annually (Gallup 2012).
  • Its estimated employers pay almost $1 billion per week for direct workers’ compensation costs alone (OSHA 2012).
  • The total cost of Presenteeism in the United States is calculated to be more than $150 billion per year (JAMA 2003).
  • Comerica discovered that at least 10% of its predominantly female workforce of 11,800 suffered from irritable bowl syndrome that reduced worker’s on-the-job productivity by approximately 20% (HBA 2004).
  • Those reported high levels of feeling overworked were 20% more likely to say that they made lots of mistakes on the job (Alfred P. Sloan Foundation 2005).
  • Workplace stress contributes to at least 120,000 deaths each year (Harvard and Stanford Business Schools 2015).
  • Over 2-3 years a business likely invests 10-20% of an employee’s salary ore more in training costs (Deloitte 2013).
  • Obesity is associated with job absenteeism, costing approximately $4.3 billion annually and with lower productivity while at work, costing employers $506 per obese worker per year (JOEM 2008).
  • Lost productivity due to poor sleep cost $3,156 per employee with insomnia and averaged about $2,500 for those with less severe sleep problems (JOEM 2010).
  • Excluding the cost of absenteeism due to insomnia, sleep-related reductions in productivity within four companies cost $54 million a year (JOEM 2010).
  • 35% of all U.S. adults and 18% of those under 40 had at least three metabolic risk factors – smoking, obesity, hypertension, hypercholesterolemia, diabetes (CDC 2012).
  • 55% of employees of 8,267 screened in 2006 reported unproductive 2.3 hours per workday when experiencing symptoms.
  • Health-related productivity costs are an average of 2.3 to 1 in comparison to medical and pharmacy costs.
  • 75% of workers with arthritis missed an average of 14 days per year of work compared to the 58% of employees without arthritis.

MORE COST AVERAGES

  • In 2006 employers lost $593 in productivity per employee with allergies.
  • In 2006 employers lost $518 in productivity per employee with high stress.
  • In 2006 employers lost $277 in productivity per employee with migraines.
  • In 2006 employers lost $273 in productivity per employee for depression.
  • In 2006 employers lost $269 in productivity per employee with arthritis.
  • In 2006 employers lost $248 in productivity per employee with anxiety disorders.
  • In 2006 employers lost $181 in productivity per employee with respiratory infections (otherwise known as bronchitis).
  • In 2006 employers lost $105 in productivity per employee with hypertension or high blood pressure.
  • In 2006 employers lost $95 in productivity per employee with diabetes.
  • In 2006 employers lost $85 in productivity per employee with asthma.
  • In 2006 employers lost $40 in productivity per employee with coronary heart disease.
  • In 2007 asthma caused 10.4 million office visits, $19.7 billion estimated cost to the economy.

DEFINITIONS

Absenteeism Re-occurring non-presence of an employee for their hired duties caused by job dissatisfaction, personal or medical issues.

Allergies Acquired body hypersensitivities to an allergen that increases reaction state with exposure resulting in immunologic consequences.

Arthritis Inflammation of a join causing pain and limited movement.

Asthma Long-lasting inflammatory disease of the airways by exposure to allergens, causing shortness of breath and anxiety.

Awareness Conscious knowledge or perception of workplace situations.

Back Pain Dull, continuous muscle tenderness in the muscles felt in or along the spine and/or distributed to the legs through the nervous system.

Barrier A personal or workplace obstacle or circumstance that prevents productivity, profitability, or loyalty.

Behavior Employee action or conduct of self.

Bronchitis Viral or bacterial infection common with weak immune systems, smoking, or high levels of air pollutants causing inflammation of the air passages between the nose and lungs.

Cancer A disease of the genes with major risk factors including: tobacco, alcohol, diet, sexual behavior, infectious agents, family history, occupation, environment and pollution.

Depression Mood-altering mental state associated with poor self-esteem, inadequacy to cope, and lack of confidence.

Diabetes Deficiency in hormonal secretion causing fatigue, muscle weakness, frequent urination, and prone to infections.

Employee-centric What a firm brings to its culture and environment for the purpose of effecting employee wellbeing.

Engagement An employee’s emotional level of awareness, loyalty, and motivation for his/her job.

Environment The indoor structure, furnishings, and atmosphere of a workplace culture.

Health Care Resources provided to support employee wellbeing.

Heartburn Stomach acid movement into the esophagus region causing burning sensation in the chest that may lead to greater health conditions of the mouth, throat, and lungs.

Injury An instance of physically being harmed.

Loyalty Action at all times in the best interests of the company, including avoiding conflicts of interest as measured by amount of behavior conduct reports in relationship to amount of employees on work site.

Maintenance A process of preserving an employee or workplace culture standard.

Mental-interpersonal Ability to perform cognitive and interpersonal job tasks.

Migraine A recurrent syndrome of headaches that debilitate mood, visual field, and body sensations accompanied by nausea, vomiting, and constriction of the arteries.

Onsite Services GIG Design team member presence for the purpose of providing expertise on worksite.

Osteoporosis Bone mass loss due to insufficient protein and mineral content leading to an increase risk of breaks or fractures.

Output Ability to produce work output in a high-quality or timely manner.

Pain Discomfort or unpleasant feelings signaled to the brain through sensory input.

Physical Work Ability to perform job tasks involving bodily strength, movement, endurance, coordination, and flexibility.

Presenteeism Practicing work duties exceeding the necessary time or without regard of illness, injury, anxiety, or conditions with consequences of less productivity.

Production Act or manufactured process resulting in tangible output and financial revenue.

Productivity An economic measure of output per unit labor and capital, while output is typically measured in revenues and other GDP components such as business inventories.

Profitability Measured in rations, a class of financial metrics that are used to assess a business’s ability to generate earnings as compared to its expenses and other relevant costs incurred annually.

Retention The ability of an organization to keep its employees measured by the percentage of employees the organization maintained.

Stress Emotional, mental, or physical strain stemming from perceived demands or circumstances.

Task Undertaking duties described as self- or pre-assigned work.

Time Management Ability to handle time and scheduling demands on the job.

Turnover Replacement of an employee that is described as a whole numerically.

Virtual Services GIG Design team member communication by Skype or Video of Internet for the purpose of providing expertise on worksite wellbeing.

 

INDUSTRY AVERAGE REFERENCES

Gallup, State of the American Workplace Report 2013;

https://hbr.org/2004/10/presenteeism-at-work-but-out-of-it

https://workfamily.sas.upenn.edu/sites/workfamily.sas.upenn.edu/files/imported/pdfs/EWS_Overwork.pdf

http://www.hbs.edu/faculty/Publication%20Files/oph_MS_final_a97f5fc7-0ace-4e5d-b634-8e5516edfd9c.pdf

https://www.linkedin.com/pulse/20130816200159-131079-employee-retention-now-a-big-issue-why-the-tide-has-turned

Gates D, Succop P, Brehm B, et al. Obesity and presenteeism: The impact of body mass index on workplace productivity. J Occ Envir Med, 50(1):39-45, 2008.

http://journals.lww.com/joem/Abstract/2010/01000/The_Cost_of_Poor_Sleep__Workplace_Productivity.13.aspx

http://fortune.com/2015/10/23/is-silicon-valley-bad-for-your-health/

https://deepblue.lib.umich.edu/bitstream/handle/2027.42/62363/abelaire_1.pdf?sequence=1

http://www.ncbi.nlm.nih.gov/pubmed/19339899

http://www.ncbi.nlm.nih.gov/pubmed/16846553

http://medical-dictionary.thefreedictionary.com/asthma