Discontented employees could potentially decrease the global GDP by roughly 9%, Gallup approximates.
A study by Gallup has found that low employee engagement costs the global economy a whopping $8.9 trillion, or 9% of its total GDP. The report was based on data from the company's annual World Poll, conducted last year, which had 128,278 participants from over 140 countries.
The survey revealed that about 20% of employees worldwide admitted to feeling sad, angry, or lonely every day. Moreover, an average of 41% reported experiencing significant stress. Those most likely to report feeling lonely were millennial workers (22%), employees who were remote full-time (25%), and those who felt disengaged at their jobs (31%).
While work is not always the root cause of these negative feelings, employers should take note. This is because job satisfaction can either improve or worsen an individual's overall well-being.
On the positive side, Gallup's research showed that when employees feel satisfied with their work and work relationships, their well-being improves. In fact, half of positively engaged employees experience a significant improvement in their quality of life.
However, employees who are disengaged at work could suffer to a greater extent than if they were unemployed. These individuals tend to have high levels of daily stress, anger, and worry. The authors explain that, on various well-being indicators, being disengaged at work is tantamount to, if not worse than, being jobless.
Roles of Managers and Employee Engagement
The data reported that only 23% of employees were engaged at work, which remained unchanged from the preceding year. Gallup describes an engaged worker as someone who is passionate about their job and actively contributes to their organization's progress. On the other hand, employees not engaged with their work are characterized as having a neutral attitude and exerting minimal effort.
Engagement levels are usually high in organizations that prioritize well-being in and beyond the workplace and actively work toward manager recruitment and development. Interestingly, Gallup observed that these practices typically result in better employee engagement rates. They noted that engaged managers lead to more engaged employees. Furthermore, high-engagement workplaces are more productive, profitable, and exhibit higher sales.
Engagement and Well-Being Differences Across Regions
Regional engagement and well-being outcomes varied significantly. For instance, the US and Canada had the highest engagement rate (33%) but also recorded the second-highest stress levels (49%), just behind the Middle East and North Africa (52%).
Europe had the lowest level of employee engagement (13%). South Asia had the least number of thriving workers overall (13%), while countries in post-Soviet Eurasia recorded the lowest levels of daily stress (19%).
Read also:
- Despite the negative impact of disengaged employees on the global economy, businesses can leverage the findings to improve employee engagement and well-being, potentially leading to increased success and productivity.
- Successful businesses often prioritize employee engagement and well-being in their strategies, which often results in higher engagement rates, improved manager performance, and ultimately, increased overall success in the business.
