Fact: Disengaged employees cost you money
Disengaged employees are far more likely to leave your organization than those who are engaged. And make no mistake, employee turnover is costly. Research shows the cost to replace senior managers is 1.5 – 2 times their annual salary. Similarly, the replacement cost for employees and team members is 70% of the annual salary by the time recruitment costs, productivity time, onboarding, etc. are considered.
Picture this: You’ve got 10 disengaged middle managers who left your organization for different opportunities. Conservatively speaking, that’s $750,000 worth of talent that just walked out the front door. Ouch! But even worse, what if they don’t leave?
Imagine the same group of middle managers plopped in their chairs. They stay, disengaged, unenthusiastic, and lacking passion. They could also be compelled to undermine your efforts and spread their misery like a cancer. Now that’s painful.
Disengaged employees cost you in terms of productivity, too. Research reveals organizations with a high-engagement culture outperform others by more than 20%. And let’s not forget, productivity is a key indicator of an organization’s potential for long-term growth.
This time, let’s say you have five disengaged managers on your staff. With the unproductive dollars, you could acquire a new, engaged manager who kicks the strategy ball forward. But keep in mind, this leaves you with one true contributor when you could’ve had two.
Consider a larger organization with 100 disengaged employees. It could’ve acquired the talent to staff two full departments of ten high performers each—or opted to invest the money for a capital project or bonus distribution.
And that’s not all:
A lack of engagement will cost your organization in other ways too, including quality, safety, and customer retention. According to Gallup:
Quality is 41% lower in organizations with disengaged employees.
Safety incidents are 41% fewer when employees are engaged.
Customer satisfaction is reported to be 10% higher in engaged organizations.
Article found on www.workplacedynamics.com
Written by Tom Devane
January 29, 2016
Facilitative Mediation is an internal service to assist employees, groups, or departments to solve a problem, difference, dispute or issue.
Mediation is a disciplined process that honors self-determination and an individual's capacity to solve problems, manage differences and resolve disputes. During a mediation, a trained mediator moves parties through the steps of mediation and trusts/allows the parties to develop their own solutions.
There is no question that the cost of organizational conflict is high. No matter which survey on this subject is referenced, results indicate that the time first-line managers spend on conflict comprises up to 40% of his or her time. While there is no way to fully translate this conflict into hard and fast dollars, it is clear that reduced morale, high turnover, loss of productivity and errors associated with conflict are very costly.
In lieu of ignoring the conflict and hoping it will go away, early intervention is key. The alternative can be long, drawn out battles - organizationally, inter-personally and/or legally. Facilitative mediation is a great first line of defense. A trained mediator structures a process to assist by asking questions: validating parties' points of view; surfacing underlying interests, and assisting parties in finding options for resolution. The facilitative mediator does not make recommendations to the parties, give his or her own advice or opinion as to the outcome of the case, or predict what a court would do in the case. The mediator is in charge of the process, while the parties are in charge of the outcome.
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