Redworks Blog (all posts)

The Cost of Disengaged Employees


Employee engagement impacts employee morale, productivity, innovation and problem solving and customer service. Any one of these can impact the business bottom line.

The Management Journal’s semi-annual Employee Engagement Index reports that 60% of employees are not engaged, and 15% are actively disengaged at work and only 25% are actively engaged.

The impact of employee engagement or rather disengagement is hitting businesses’ bottom line hard. In fact, the lack of employee engagement is a billion dollar problem.

According to Canada Human Resources Centre, unhappy workers cost the North American business economy over $350 billion per year in lost productivity.

So how much is this disengagement costing you and your organization? According to Forbes, the costs of a disengaged employee is equivalent to 34% of their annual salary, or $3,400 for every $10,000 of income.

If we applied this to the average Canadian salary of $55,800 a year, the costs of a single disengaged employee to the business is going to be $18,972 annually.

While there is no quick fix, there are simple leadership practices that can produce immediate improvements in engagement.

We are offering a program that focuses on simple but powerful behaviours that will have maximum impact on your leaders’ ability to engage.

Increase your skills to more effectively engage your employees. For more information on our new Engage and Mobilize Employees Program:

Your organization may be eligible for funding through the Canada-Saskatchewan Job Grant. Employers may be eligible to receive two-thirds of the training cost.

Please note: Due to high program demand, Canada-Saskatchewan Job Grant applications are being prioritized and processed approximately two weeks prior to the start date of training. Applications submitted less than 10 business days prior to the start date of training may not be approved.