The Real Cost of Disengagement
What would you do if someone told you your company was quietly bleeding money—millions, maybe even billions—every single year? You’d probably stop everything to find the leak. Well, according to Gallup’s 2025 State of the Global Workplace report, that leak is real, and it’s coming from a source that’s too often overlooked: employee disengagement.
This year, Gallup reported that only 21% of employees globally are engaged at work, meaning they feel connected to what they do and bring energy, creativity, and commitment to their roles. That’s a drop from previous years—and a warning sign we can’t afford to ignore.
Let’s put it in dollars and cents: disengaged employees are costing the global economy a jaw-dropping $438 billion in lost productivity. Yes, billion with a “b.” That’s missed deadlines, reduced innovation, poor customer service, and increased turnover rolled into one expensive problem.
But here’s the twist: this isn't just about frontline staff. Gallup found that manager engagement is also slipping, dropping from 30% to 27%. And since managers influence 70% of team engagement outcomes (Gallup), that ripple effect is massive. If your managers aren’t bought in, your team likely isn’t either.
So, what’s going on? Why are people so checked out?
Stress is part of it—41% of employees globally report feeling daily stress. Add unclear expectations, poor recognition, and lack of career growth, and it’s a recipe for disengagement. And when people stop caring, companies start paying.
But here’s the good news: engagement is one of the most profitable investments you can make. Organizations in the top quartile of employee engagement see:
- 23% higher profitability
- 18% higher productivity
- 43% lower turnover
These aren’t just nice-to-have benefits. They’re direct contributors to a healthier, more resilient bottom line.
So, ask yourself: are you creating a culture where people want to show up—or where they have to? Are you investing in their well-being, recognizing their efforts, and giving them reasons to care?
The companies that thrive in 2025 and beyond won’t just be the ones with the best tech or biggest budgets. They’ll be the ones that treat people like their greatest asset—because they are.