Employee Engagement – Cost? Up to 180 Million Dollars per Case

In July 2004, the Gallup Organization put the dollar cost to US business, of actively disengaged workers, at $300 billion.

In July 2009, the BBC World Service reported a $180 million cost to United Airlines, when Dave Carroll’s viral video “United Breaks Guitars” led to a share price drop of approximately 10%. www.longislandexchange.com

Carroll’s band and other passengers witnessed guitars being thrown on the tarmac by careless baggage handlers before take-off, and reported this to United staff. Three people showed no interest in their plight, and United dodged his $1200 claim for a $3,500 guitar for a year before denying it completely. Carroll’s song (complete with the badly-mutilated guitar) is apparently destined to become a United training tool. Enjoy it at http://www.youtube.com/watch?v=5YGc4zOqozo

Disengagement is a major business problem, with many causes. These include a lack of skillful management, selection/succession procedures that do not put the right person in the right job, and inattention to climate and culture. And, of course,  measurable, affordable and effective learning interventions.

CPS is privileged to work with some truly excellent companies, who drive engagement from the top, and have a strong awareness of the cost of disengagement, and its consequences.  They have put the real numbers on retention,  productivity, service, quality, innovation, on-going process improvement, collaborative intelligence and the on-going development of competitive advantage.

Those who want to drive change in the engagement issue do best when they produce the numbers. No one gets out of their comfort zone without a compelling case for action, and many of the people who make key decisions have a background of thinking in terms of numbers, not on whether their people bring their whole selves to work.

Give them the real, hard numbers, plus the basis on which those numbers were derived (c-psolutions has things like how to calculate the cost of turnover etc if anyone needs them). Show them the hard research on why people go through the motions at work or leave their jobs. Give them valid metrics on the impact of disengagement on sales, service and customer retention.

Theory speaks to some people, but the business case is the best and most compelling reason to take the action needed to engage our workforce.

And to stop people breaking those poor guitars.

CPS is eligible to provide custom solutions to clients with state funding assistance, and helps our clients to source these. As a values- and ethics-based small business, CPS specializes in affordable, lasting solutions to people and business challenges.

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