9 Reasons Why Low Employee Engagement Will Affect Your Company Growth

Organizational Culture
Published on
February 29, 2016

You might be a great motivator and an even better leader, but Google has proven that there's always more to be done. Employee engagement is all the rage these days, with over 80% of lifetime searches occurring in the last 12 months alone. Correspondingly, searches for "employee happiness" have also skyrocketed in the past years. This new era of management has highlighted morale and satisfaction as key metrics.  

In a world of free-flowing information and quick career transitions, any company must adjust to this reality and prioritize keeping employees happy and engaged. Technology has made it possible to implement cost-effective methods to improve engagement, performance, and the bottom line.  


Effects of Disengagement

HR managers know that a happy employee can save a company a minimum of $2,500 - if you had the choice, wouldn't you invest in the technology to satisfy your employees and save money?  

To give you another perspective, employee disengagement in the US costs $450 - $500 billion annually. This waste is easily avoidable but can have significant ramifications on your company.

  1. Companies with engaged employees see 2.5x more revenue than those who don't encourage engagement. It's primarily a managerial issue since many leaders fail to go above and beyond to ensure their employees are engaged.
  1. A lack of engagement results in 33% less revenue and 11% less revenue growth. How could any leader not engage their staff knowing that it has such a dramatic effect?
  1. Higher employee engagement has shown a 19% increase in revenues and a 28% increase in growth. It is the easiest growth hack for any organization, small or large.
  1. Companies that engage employees through feedback have a 15% lower turnover rate. The cost of searching for, hiring, and training just one new employee is staggering; a 15% reduction in attrition can save a tremendous amount for the company.
  1. Poor company culture has created an $11 billion annual loss from employee turnover. Again, this is more of a leadership problem than anything and requires a top-down solution.
  1. Unhappy employees take 15 more sick days per year. While they might not be physically ill, it's clear that they're sick of their job and the leadership they're under.
  1. Unhappy employees are 11x more likely to move to another job in the next 12 months, despite the money spent recruiting and training them. Engagement must be included in onboarding for any significant benefits.
  1. A 2013 Tinypulse survey of over 300 global organizations with over 40,000 surveys revealed that transparency was the #1 factor for employee engagement. Companies with closed systems can be hurting themselves more than their privacy is helping.
  1. Millennials believe that mentoring is one of the essential aspects of high professional performance. 88% are willing to invest personally or sacrifice vacations to train themselves in the skills needed to compete in today's workforce. Without a solid mentorship program, engagement amongst millennials — the fastest growing force demographic — is bound to be low.


Investing in simple tools to increase your employees' engagement can inflate profits by almost $2,500 per employee. MentorCloud is one solution that allows admins to understand who is engaged and happy while working closely with employees who require additional support. It provides a much-needed metrics dashboard to quantify some soft claims to success and show a clear ROI.

Employees have an incredible impact on top and bottom lines, and a happy workforce through engagement will drive both to success. Engagement is no longer a luxury but rather a necessity. True leaders know that they are never done motivating and engaging their staff; in fact, those who think they've done all they can do have already lost the battle. MentorCloud allows you to keep a pulse on your employees' day-to-day happiness and provide individuals an opportunity to better themselves every day by seeking out and sharing the knowledge they crave.  

If you agree that employee engagement is a critical component of your company's success, please contact us here.

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