This presentation addresses a crisis of engagement among the American workforce, suggests some reasons why this crisis exists and provides a tool to help you calculate the possible cost of this loss of productivity in your organization.

1. The Financial Impact of a
Loss of Employee Engagement
03.19.12

2. Findings from a Recent Gallup Poll
Level of 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr
Engagement 2010 2011 2011 2011
% Engaged 28 30 30 29
% Not Engaged 53 52 51 52
71%
% Actively
19 18 19 19
Disengaged
Source: Gallup Consulting, Majority of American Workers Not Engaged in their Jobs,
October 28, 2011

3. Potential Sources of Employee Lack of Engagement
• Lack of effective leadership
• Unhealthy organizational culture
• Burearacracy
• Silo mentality
• Micro-management
• Blame
• Lack of accountability
• Lack of an inspiring vision
• Lack of shared values
• Lack of inspiring work
• Lack of effective communication

4. Why It Really Matters!
Beyond the fact that engaged employees are:
• More productive
• Contribute more to profitability
• More focused on safety
• Absent less often
Engaged organizations have 3.9 times the earning per share
growth (EPS) when compared to organizations with lower
levels of employee engagement.
Source: Gallup Consulting, Employee Engagement, A Leading Indicator of Financial Performance
March 19, 2012

5. The Evolution of Employee Engagement:
Time for
a new
hire Quadrant 1 Quadrant 2
Engaged but Fully Engaged and
Not Yet Competent Fully Competent
Recruit, Select, Hire and Train. Highly productive and effective.
Quadrant 4 Quadrant 3
Disengaged and Disengaged and
No Longer Competent Still Somewhat Competent
This too requires Recruits others to join in.
manager time Requires a significant amount of
manager time.
Quit or Fire??
Adapted from a model created by Judy Suiter of Competitive Edge, Inc.

6. Calculating the Cost to Your Organization:
Total Number of Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
x Percentage of Employees in Quad. 3 . . . . . . . . . . . . . . . . . x 71%
Estimated Number of Employees in Quad. 3 . . . . . . . . . . . . . . .106.5
x Average Monthly Compensation of Emp. In Quad.3. . . . . . $2,500
Estimated Average Monthly Payroll for Emp. In Quad. 3 . . $266,250
X Percentage of Lost Effectiveness (100% - 70%) . . . . . . . . . . . 30%
Estimated Monthly Cost of the Individuals in Quad. 3 . . . . . $79,875
Estimated Annual Cost of the lost productivity of the
Individuals in Quad. 3 . . . . . . . . . . . . . . . . . . . . . .$958,500

7. For more information about our programs to
enhance engagement in your organization, please
contact us at:
Level Up Leadership, Inc.
Office: 919-510-0426
Joy’s Mobile: 919-609-0704
www.levelupleadership.com
joy@levelupleadership.com