The Power of the Wolf: What is workplace engagement actually worth?

From Jim’s white paper: “The Actual Value of Motivation and Engagement in the Workplace.” Read the full report here!

“The power of the wolf is the pack; the power of the pack is the wolf.”

I thank Rudyard Kipling for this expression; I freely paraphrase this sentiment from The Jungle Book.

Employee motivation is on one level a very complex process. Highly effective organizations provide opportunities for each individual in the organization to satisfy his or her personal quest for success and happiness. There’s an inherent conflict: The organization can provide certain resources and opportunities for individual success; the fact remains that ultimately all motivation is internal and the process of creating personal success is the responsibility of each individual and each individual has a unique vision of success and happiness.

What is the role of the company when it comes to employee motivation and what is the role of each individual employee? The focus of my life’s work is on the development of the individual, so I’m going to concentrate on the personal responsibility of the wolf in creating his or her own success. However, since we’re pack animals by nature, let’s look at the opportunity the organization has in providing resources to cultivate and support individual success. The organization that understands the value of supporting individual success for its members is inevitably more productive, innovative, creative and profitable.

How much does disengagement cost?

Three Hundred-Fifty Billion Dollars a year; I don’t know that these words create a powerful enough picture!

$350,000,000,000 a year; that’s a lot of zeros! In fact, Three hundred billion dollars buys:

About 16 million new cars.
About 1.5 million new homes.
About 3.5 million private college educations.

Wouldn’t it be nice to have all this back in our economy? Of course the losses incurred from lost & wasted time due to a lack of employee motivation and disengagement are not usually felt directly. These employees are still paid for their time; the drain is on the company and the economic impact is secondary and tertiary. We feel this impact on a global level in the form of higher costs of doing business which eventually translates into higher prices for goods and services. The same unmotivated and disengaged employees who are losing and wasting all this time are those who will eventually feel the economic impact of these losses.

Widely published research from the Gallup Organization indicates that only 29% of the American workforce is actively engaged on the job.

54% are “not-engaged” moving through the day like automatons.
17% are fully “disengaged,” they’re not productive at all and are likely to be disruptive to other employees.

A study by Salary.com shows an average of 2.09 hours lost & wasted per employee workday. This means the average American employee is wasting nearly a quarter of his or her working life.

Motivated, Engaged Employees are an Asset…

Want to recover some of that lost and wasted time in your organization? If you need some motivation to do so just multiply the American average of 2.09 lost payroll hours per day by your average rate of pay. Based on the average American salary, saving even 10 minutes per employee workday can save a company $2,000 or more per year. That’s just recovering the direct cost of the lost and wasted time. When you invest in the motivation and engagement of your employees what is the actual return on your investment?

Lower employee turnover resulting in reduced training and replacement expenses.
Less sick and lost time.
Healthier employees often translate into lower health insurance premiums.
Focused, engaged employees make fewer mistakes, have fewer accidents, maintain equipment and facilities to a higher level.
Provide higher levels of customer service.
Engaged and motivated employees are:
- More productive.
- More creative and responsive.
- More loyal.
- More cooperative with other employees, create more productive teams.
- Better candidates for advancement within the organization.

Motivated and engaged employees attract other motivated and engaged employees!

In your organization, what is the true monetary value of keeping a motivated and engaged employee for a longer period of time? What is the value of increased customer loyalty and familiarity created by a motivated employee? What is the value of having employees who enjoy and appreciate team members and work together to further your company mission?

Read the full report here!

Resources…

Hrcases; “US CEO Compensation Trends”; http://hrcases.wordpress.com/category/hr-surveys/… Accessed 9/1/2008

Dr. Maynard Brusman; Employee Engagement, Running on 1/3 People Power; http://www.workingresources.com/professionaleffectivenessarticles/article.nhtml?uid=10040… Accessed 9/1/2008

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