Truth by Numbers: The Cost of Disengaged Employees

I took 2 HRM classes this session. Both classes were great, and both taught me well. In one we encountered poor performers in high-performing teams, in the second HR class we encountered employee engagement and what it costs an organization. It was absolutely intriguing and appalling at the same time. I did not use this article for my assignment, but I wanted to put it out there the cost of disengaged employees; and these are old numbers.

15 April 2002The High Cost of Disengaged Employees

There are "cave dwellers" in your ranks, and they're hurting your company
Element 1 ExpectationsEmployee EngagementA GMJ Q&A with Curt Coffman
Coauthor of First, Break All the Rules (Simon & Schuster, 1999) and Follow This Path (Warner Books, 2002)

Engaged employees are clearly more valuable to your company than disenchanted ones. Great managers and leaders know this instinctively, and The Gallup Organization's latest research into employee engagement levels among the U.S. workforce confirms it. In fact, according to Gallup's calculations, actively disengaged employees -- the least productive -- cost the American economy up to $350 billion per year in lost productivity.

What are the characteristics of the best -- and worst -- employees? And how can employees, managers, and corporate leaders work together to create a workplace that promotes employee engagement? We asked Curt Coffman, Global Practice Leader for Q12 Management Consulting and coauthor of Gallup's best-selling book on great managers, First, Break All the Rules, and the soon to be published Follow This Path (due out in October), to give us Gallup's latest insights.

GMJ: Gallup uses the terms engaged, not engaged, and actively disengaged to describe workers in businesses worldwide. What do those terms mean?

Curt Coffman: Since 1997, Gallup has reviewed the responses of approximately 3 million employees (over 1 million in 2001 alone) that have participated in the Q12 survey, Gallup's 12-question assessment of employee engagement levels. Employee responses to these crucial 12 items have significant linkages to broader employee attitudes and day-to-day behavior.

In Gallup's review, three distinct groups, or levels of engagement, emerged: engaged, not engaged, and actively disengaged. The "engaged" employees are builders. They use their talents, develop productive relationships, and multiply their effectiveness through those relationships. They perform at consistently high levels. They drive innovation and move their organization forward. The employees that are "not engaged" aren't necessarily negative or positive about their company. They basically take a wait-and-see attitude toward their job, their employer, and their coworkers. They hang back and don't commit themselves.

This brings us to the "actively disengaged" employees -- the "cave dwellers." They're "Consistently Against Virtually Everything." We've all worked with an actively disengaged employee who is not just unhappy at work; he acts out that unhappiness. Every day, actively disengaged employees tear down what their engaged coworkers are building.

GMJ: What are the characteristics of an actively disengaged employee?

Coffman: Actively disengaged people operate from the mindset, "I'm okay. You're not okay." They believe that they're doing what needs to done, and everyone else is wrong. Negativity is like a blood clot, and actively disengaged employees sometimes clot together in groups that support and reinforce their beliefs.

Actively disengaged employees also may close themselves off from anyone who will challenge them to become part of the solution, rather than staying part of the problem. This is key to understanding the difference between an engaged and actively disengaged person. An engaged person occasionally becomes negative. We all do. But an actively disengaged person finds it almost impossible to become part of the solution, because they thrive on being part of the problem.

GMJ: How can you spot an engaged employee?

Coffman: Engaged workers show consistent levels of high performance. They're natural innovators, and they drive for efficiency. They demand clarity about the desired outcomes of their role. They're passionate about their work -- they have a visceral connection to what they do. They challenge others to work with mission and purpose.

Engaged employees don't just accept anything that comes along; when a change occurs, they want to know what is behind it and how they can connect to it. They're energetic and enthusiastic, and they never run out of things to do -- they create more work for themselves within their area of talent. They're committed to the company, to their workgroup, and to their role, so much so that their commitment overcomes barriers and transforms relationships.

GMJ: What can managers do to help engaged employees stay that way?

Coffman: Engaged employees need strong relationships with, and clear communication from, their manager. They also need a degree of tension within their areas of talent and strengths that will stretch them and help them continue to grow.

A great manager can help them create and "own" their goals, targets, and milestones. A great manager can help them focus and can help keep their path clear, so engaged employees can do what they do best every day. And managers can help them develop the skills and knowledge they need to build their talents into strengths.

GMJ: What do engagement levels mean for a business' bottom line?

Coffman: Engaged employees produce more, they make more money for the company, they create emotional engagement with the customers they serve, and they create environments where people are productive and accountable. We also know that engaged employees stay with the organization longer and are much more committed to quality and growth than the other two groups.

Our most recent research suggests that 29% of the U.S. workforce is actively engaged, 55% is not engaged, and 16% is actively disengaged. To put it another way, for every two builders walking the halls of your organization, there is a cave dweller impeding the good work done by the engaged employees.

If 55% of all U.S. workers are not engaged, and 16% are actively disengaged, then 71% of the Americans who go to work every day aren't engaged in their role. So American businesses are operating at one third of their capacity. Think about that: What if only one third of a bank's branches opened each day? What if only one third of a manufacturing company's machines operated at capacity every day? The lost opportunity is obvious -- but so is the opportunity for growth, if you can move your employees from the "not engaged" to the "engaged" category.

-- Interviewed by Barb Sanford

Next month: Managing for engagement

Curt Coffman, a former Global Practice Leader with Gallup, is coauthor of Gallup's best-selling book on great managers, First, Break All the Rules: What the World's Greatest Managers Do Differently (Simon and Schuster, 1999). Coffman's latest book is Follow This Path: How the World's Greatest Organizations Drive Growth by Unleashing Human Potential (Warner Books, 2002).
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Appreciating what I have

Appreciating what I have

Every night I pray with my son (well really, he sings his prayers) and every night we thank God for all our blessings.

Today, I count my blessings because if I am unhappy with any aspect of my life, it is because I did not heed the omens set forth by the universe and God. Either way, as my favorite poem says: - no me prometiste tu que mayo fuese iterno (Nervo) (spring was not promised to be forever).

Here goes...
•Chris - my strength and one of my most vocal supporters. It's been me and you since the beginning and since the beginning I have always loved you.
•Our son - so much joy wrapped into all 38lbs of him.
•My girlfriends - we dish, we fight, we make up but in the end it has always been about our bond.
•The [dis]organization - through which I met my girl friends directly and indirectly.
•The comic relief (proprietors) - in terms of management, we won't go there. However, you are hilarious to watch. You are fodder for this blogger.
•My sister-in-law - as I think I have mentioned before, you are my support system. Your continued support has allowed me success in my studies. Thank you, I really appreciate it. I love you Lau...
•Uncle Joe - you have always been a supporter of higher learning. You are the barometer to which I measure success. Thank you for the challenge.
•My mom - big ups for giving birth to me and all that you have sacrificed for your girls. You are 50% of what makes me but you are 100% great.
•My sister - I always tell you that if we were one person we'd be great but alas we were paired by God for a reason and it was to be sisters - a reason to never be lonely. With you I am never alone and together we will put it all in our rear view.
•Peter - the dream: come wedding day, if ever, it will be you (walking me down the aisle). It has always been you since I was 6, at 16 and forever because through it all you have always been more than an uncle. You have always treated us as if we were yours. That is something I will always remember.
•To the one that saved me from walking las calles de San Bartolo desclaza, my grandmother - si no fuera por ti no hubieras tenido las opportunisades que se han presentado en mi vida. Mi familia, por generaciones - nuestras riquezas, y todo lo que somos es por ti.

Con mucho amor...

Feliz Navidad, Merry Christmas (or the now popular Feliz Dubidad)

Sincerely,
~Cher

Sent from my iPhone

I want to be Engaged: A Plea for Engagement and Teamwork

Diclaimer: I believe that no job, regardless of the task, deserves anything less than 100% of you. No one can be 100% of everything 100% of the time, but that is why you don’t work alone. That is why you are part of a team. Where your strengths end, your colleague’s begins and it continues with everyone you work with. I believe that (I revel in my naïveté). However, when your team is just as fed up as you are; when they no longer care whether what you need to do gets done or not because their measly benefits have been slowly taken away every year and you have nothing left to show for your 40-45 hours a week of work (not including the commute), you cannot help but be disengaged.

Ready for a Commitment: it is not a ring

I want to be engaged. I don’t need a ring on my finger. You don’t have to make me any promises of a Novo, Lucida, or any style of micro pavé anything from Tiffany's. I already have the house, the yard, the kid, the man; but I don’t have the position that motivates me to be engaged. I used to be so happy to work. I mean, hey I was getting free medical. I was young. I just needed to support my shoe habit, my clothes habit and to help mom with the bills. It was all good. I felt great to wake up in the morning. Many years later, my priorities have changed. I changed, unfortunately, the organization did not change with me.

I no longer wake up happy: I am happy to wake up and be alive and be with the people that I love, but when I enter the building, turn the knob and make my way the anger bubbles. I go through the motions, I no longer care – and that bothers me. Why should I work like this? I want to care again.

The Problem

When the disorganization asks you what is wrong, they ask with concern in their eyes how they can make your work life better, say they will change but then continue doing the very things that upsets the work force, what does it tell the staffers? Why should the staffers care about the things you promise or your business overall? After hearing that things will change all of the time and yet they never do, you can’t help but to become discouraged and absolutely disengaged. You have spent so many years making idle promises and idle threats (to people raised in the outer boroughs of New York City in the 80s no less) that at this point, you have the staffers wanting to collect the unemployment. Was that your goal again?

Align your goals!

I think that no one should work for technicians that don't have any real management background. Just because you can do the job, doesn't mean you know how to run a business. Either that or hire managers to run your business while you work it. M. Gerber (the E-Myth) wrote about it, there is also the Peter Principle and so many other theories that only knowing about management can teach you. Some things you pick up, some things are common sense, some things you have to take the time to learn; but it is those things that can really take your workers from ordinary to extraordinary. Don't you want extraordinary?

I really want to be extraordinary for an organization. I cannot have any less.

Merry Christmas & Happy New Year!

The management of me: A prayer for management

The management of me: A prayer for management

I need to be managed. I know too much, and the funny thing is that I know nothing at all. Some of what I know is about management theory. It's only theory, but here's the thing - it makes sense and I need a leader. A real one.

A manager leads, plans, organizes and controls. The very few times I ask how I should go about something, I ask my supposed leaders and they don't know, it is discouraging. Why won't you make a decision? Okay, maybe it is the first time encountering a problem: let's trouble shoot and genuinely think of a better process. Let's figure out a solution.

Doing things the old way because it is the old way that has worked does not make it a good way or even the right way. But change is scary and fear turns into resistance. If you expect resistance you will be met with resistance and that is just the truth (okay the Ford's wrote about it but only after Kotter).

So, I want to learn. I want the organization to have measures set, to recognize the constant need for change to impose best practice methods in everything they do.

I can't say that I have been totally unhappy with the false sense autonomy and empowerment but now with all that I know: Deming's Theory of Profound Knowledge, for example is really compelling and attractive when management at my current disorganization knows nothing about processes that I have improved; let alone have profound knowledge. What about those forms? What about the spreadsheets, the presentations? To what is my education going to?

A friend posted that in order to receive the glories of God that one must pray for the abundance they do have and not pray over what they are lacking. With that said...

God I thank you for the abundance of ignorance you have surrounded me with, thank you for the disorganization, its cup runnth over.

Truthfully and above all thank you God for all the glories in my own life separate of it all... Not even I can deny that the stupidity of the years has provided me with goodness that You have allowed me to receive. But then what about my ability to stretch my fifteen cents into a dollar? My ability to analyze and come up with solutions to financial, health and personal problems? Okay God, I thank you for giving me to parents with enough wherewithal to teach me, educate me. You gave me to people who didn't come here (the US) with much, didn't command the language and after more than 30 years here still have fluency issues but that too has taught me: language barriers do not diminish meaning or importance in what is being said. They have given me truth, they have instilled fear and they have taught me to know when enough is enough. In that, You will help me.

So... In Jesus' name I pray, Amen.

Sincerely,
~Cher

Sent from my iPhone

Who takes care of them?

Who takes care of them?

As Melissa writes about childcare I sit on the train looking at 2 women who seem younger than me with 7 kids between them. I am watching them because I simply cannot stop staring unless I am writing - so I write.

The 2 women talk to each other, they curse, they catch attitude with the rest of the passengers when it is them with 2 strollers during the end of day rush.

What went wrong? Why such an attitude? What did we do to you?

FYI: 6 of the kids belonged to the other friend. The kids looked alike but who could tell which belonged to whom? Giving the benefit of the doubt I split the kids between the 2.

Argh!!! My naughty bits ache at the thought of spitting out so many kids.

So who takes care of them? I wonder if they have to pay for childcare and if so, what happens on all of the Eve's of holidays and Monday holidays we all don't have off? What do you think Melissa?

Sincerely,
~Cher

Sent from my iPhone

Childcare

Contributed by Melissa Crain-Serrano

Recently I've had several friends inquire about daycare for their children and they have discussed with me the trials and tribulations of finding a good provider. We've been lucky with the people who have cared for our girls and we are also lucky enough to be able to afford what we choose, rather than taking whoever costs the least. Not too long ago I had another friend discussing the requirements of time off and such for an in-home daycare provider who was about to open. They asked people to give their thoughts on this and several replied. What amazed me was just how ridiculous daycare providers have become. They want to be treated as if they run their own business and get all those benefits, and yet, they don't want to follow basic customer service because it's "their" home and not a business office. You can't have both. Either it's a business and you run it as such, or it's a side-job/hobby and you run it that way. OR, become a nanny and don't deal with it at all.

To give you an example, here is a list of the most common requirements that I have heard/seen from providers:

1. Two weeks' paid vacation

2. Five paid sick days

3. All holidays off - paid

4. The day before all holidays off - paid

5. The day after all holidays off - paid

6. An extra day off if the holiday lands on a weekend - paid

7. Four personal days off - paid

8. Children who are sick are not allowed at the discretion of the provider, but parents' must still pay.

9. If children are not present for any reason, parents must still pay

10. 5 day notice is required for provider to take time off

11. Parents must give a 2 week notice before taking time off, but they still must pay.

Average price for a full time child is roughly $175, give or take which equals $35 per day. Let's use the 2010 calendar and the example above.

January 1st, must be paid, although there is no child care. Considering most parents don't work this day, it's just a regular $35 day of pay.

January 4th must be paid, although there is no child care. The day after the holiday lands on a Saturday, therefore the provider is closed on Monday. Since the parents don't get Monday off, they must pay $35 to the provider and another $35 to an alternative provider.

January 15th, 18th and 19th must be paid, although there is no child care due to MLK Jr. Day. Since the day before the holiday is a Sunday, the provider receives the Friday (15th off) as well as the day after the holiday (the 19th). We'll give the benefit of the doubt that the parents' have this day off (even though most do not). That still means that they must pay $70 to the provider for two days without service and another $70 to another provider for backup service.

February 12th, 15th, and 16th must be paid, although there is no child care due to President's Day. Since the day before the holiday is a Sunday, the provider receives the Friday (12th off) as well as the day after the holiday (the 16th). We'll give the benefit of the doubt that the parents' have this day off (even though most do not). That still means that they must pay $70 to the provider for two days without service and another $70 to another provider for backup service.

March 22nd- 25th must be paid, although there is no child care due to provider's vacation. Parents must pay $175 for the provider and another $175 for a backup provider.

April 5th must be paid, although there is no child care due to Easter. We'll give the benefit of the doubt to the provider and say they don't close for the Friday before Easter, only the Monday after. Most places are not closed, so the parents will pay the $35 to the provider and another $35 to a backup provider.

May 28th, 31st & June 1st must be paid, although there is no care due to Memorial Day. Since the day before the holiday is a Sunday, the provider receives the Friday (28th off) as well as the day after the holiday (the 1st). We'll give the benefit of the doubt that the parents' have the Monday off since most do. That still means that they must pay $70 to the provider for two days without service and another $70 to another provider for backup service.

June 14th-18th must be paid, although there is no care due to provider's vacation. Parents must pay $175 for the provider and another $175 for a backup provider.

July 2nd, 5th & 6th must be paid, although there is no care due to the 4th of July Holiday. Since the day before the holiday is a Saturday, the provider receives the Friday (2nd off) as well as the day after the holiday (the 5th) and another day (the 6th) due to the fact that the 4th fell on a Sunday. We'll give the benefit of the doubt that the parents' have the 5th off. That still means that they must pay $70 to the provider for two days without service and another $70 to another provider for backup service.

Luckily, August has no holidays!

September 3rd, 6th & 7th must be paid although there is no care due to Labor Day. Since the day before the holiday is a Sunday, the provider receives the Friday (28th off) as well as the day after the holiday (the 1st). We'll give the benefit of the doubt that the parents' have the Monday off since most do. That still means that they must pay $70 to the provider for two days without service and another $70 to another provider for backup service.

October 8th, 11th & 12th must be paid although there is no care due to Columbus' Day. Since the day before the holiday is a Sunday, the provider receives the Friday (15th off) as well as the day after the holiday (the 19th). We'll give the benefit of the doubt that the parents' have this day off (even though most do not). That still means that they must pay $70 to the provider for two days without service and another $70 to another provider for backup service.

November 24th, 25th, & 26th must be paid although there is no care due to Thanksgiving. We'll give the benefit of the doubt that parents have the 25th and 26th off, and therefore they only need to find alternative care for the 24th which equals $70 ($35 for the provider and $35 for the alternative).

December 23rd, 24th, 27th & 28th must be paid although there is no care due to Christmas Eve and Christmas Day. We'll give the benefit of the doubt that hte parents don't work on the 24th and receive the 27th off for Christmas. This means that for the 23rd and 28th, the parents must pay $70 for the provider and $70 for a backup service.

December 30th, 31st must be paid although there is no care due to New Year's Eve. We'll give the benefit of the doubt that the parents don't work on the 31st. This means that for the 30th the parents must pay $35 for hte provider and another $35 for a backup service.

Let's just add that up. That's a total of $1995, which equals 57 PAID days off for the provider, plus, let's remember they also expect 5 days of sick time and 4 days of personal time so the real total is $2310 and 66 days. That doesn't include the actual holidays themselves, which I think they should have a right to be paid and take the day off (for the major ones). I'm also not including the parents time off for sick children or vacations. I feel that it is unfair for the provider to lose money when they don't have the control to decide if/when the parents can go on vacation and no one has the control over when a child becomes sick. However, that is an INSANE number of paid days off that 99.9% of the American population would never have even after working at a company for 25 years. So, why should a daycare provider be allowed to do so? Not to mention the fact that most providers no longer have early or late service, which means they are open the exact times that a normal office is. How is it possible for me to get my child to you no earlier than 8am if I have to be at work at 8? And how can you expect parents to pick up their children by 5pm when most offices don't even close until 5pm?

If you want the vacation and holiday benefits of a regular business and you want to keep business hours, fine. Then you need to make sure you can hire employees to keep running the business when you are off. Normal businesses are closed only on the main holidays of the year. If you want to be off for every holiday and every day before and after and your vacation time, sick time, etc. then you need to hire someone to maintain the business or accept the fact that you don't get paid if you choose not to provide the service! What if every Verizon employee decided they wanted all these days off and Verizon chose not to hire anyone to maintain their business on those days? Would you pay for no phone service for that time? Or would you expect a credit? Verizon still gives their employees holidays off and vacation time, etc. but they are a service industry, as is childcare, and therefore they make sure to provide service regardless of whether or not someone is out for the time being.

If your stance is "this is a side-job/hobby and that's why I have the days and hours I choose" then again, it's fine. But that doesn't give you the benefits of working at a real business! If you can't afford to keep the schedule you want, then you can't afford to have that schedule. The same reason I choose to work full-time is because if I worked part-time it wouldn't allow me the $ to do all the things I want. That's your choice. Parents' shouldn't have to cover your financial woes.

I spoke to one provider who told me "but you aren't even paying me minimum wage". That's right, because you aren't giving my children 100% of your attention and care. You are splitting it with 6 other children. Therefore, the charge should be 12.5% of your hourly wage (this is for a provider who watches 8 children). Let's say (for math's sake) that my children are in your care for 10 hours a day. That means I pay (at the $35 rate) $3.5 per hour. If a provider has 8 children in their care per hour, that is $28 an hour - nearly 4 times the minimum wage. Why should I pay you for less than half rate care? If you want to be paid like a nanny, then go be one.

Lastly, the latest I've heard now was paid maternity leave. MATERNITY LEAVE?!?!?!?!? So, let's see, average maternity leave is about 6 weeks. I'm supposed to pay you $1050 (per child) and then go find another person to pay to take care of my child so that YOU can have a baby? And now that the child is born, that means you've now reduced the amount of attention you will be giving my own children, so the % of care is now 11.11% (probably more so considering they are a newborn and can't do anything for themselves, but that's a whole other issue).

This is getting absolutely ridiculous and it gives REAL providers a bad name. We had a wonderful in-home daycare provider who made sure that if she were sick, took time off, etc. that we had backup care provided in her home or else we DID NOT PAY! She's grown into three separate day cares now, so obviously she didn't lose any money for not charging us for that time nor did she go broke finding alternate care for the times she was out. She was open from 7am until 6pm - giving parents enough time to commute to and from work. The only thing we were charged for were the major holidays and if we took the kids out due to illness, vacation, etc. That's how you run a daycare.

If I don't allow him to talk to me that way, what makes you think you can?

When I got my voice
"Dammit he saw me," I thought and he called me over. I was 15, and when I got to him, he spoke ill about my mom. It was in anger, he didn't mean it but there it was. Nasty words hanging in the air about her, my mom. Not cool. Especially not to me. Without rehashing the gory details of our exchange I spoke back to my father that day. I got my voice. How dare he speak to me, his daughter, in that manner?

I did not stay shut and I ripped him a new one (disrespectfully, not my proudest moment). And when I turned 23 and he called me acting a fool, I ripped him another one. This time though, I did it in my most perfect Spanish to date and didn't mention anything but facts: I was 23, gainfully employeed, living on my own and have younger siblings 15-16yrs younger who needed a father. Go call them. They need you more.

We talk once in a while, I love him, he is after all my dad, but the truth hurts and it was about time he heard it.

The point: if I did not allow my father, the man who makes up 50% of my genetic makeup to talk to me any which way he wants; why would I allow you, seemingly nobody by comparison to my father, talk me like I am a piece of - nothing?

Yo no tengo pelo en la lengua (I don't have hair on my tongue) but I do have self-control. As a regular person, I really want to hurt your feelings but I won't. I already said that I would not make an already difficult corporate environment worse. The only thing I can say is: be careful who you take a funky tone with. Yo tengo educacion (I have been taught) and I won't talk back to you but the next person (or people) you hire can and will be a different story. (OD relationships)

The Reality
I am not special and I know that I can be replaced but don't think that the next employee will be anything like me or my coworkers. They won't have any reason to stop themselves. We are a resource, we are human capital! Do we cost you money? Of course, we don't work for free but, we are human nonetheless. We work hard to make sure your [dis]organization runs as smoothly as possible.

Employers!
Employers, please refrain from talking to regular employees as if we are less than you or like we are your children. Why can't we work and have some dignity too?

Sincerely,
~Cher

Sent from my iPhone