How is disengagement impacting companies’ bottom lines?

Disengagement is directly linked to a company’s bottom line, with estimates suggesting it has cost the global economy trillions of dollars in lost productivity. When employees are checked out, productivity plummets, and overall output is significantly reduced. Additionally, disengagement impacts attrition and drives layoffs and resignations - costing companies time and money needed for hiring, onboarding, and training.

Without engagement, workers will feel disassociated from a shared goal, and believe their contributions and small wins go unnoticed along the way. Therefore, it is crucial companies enhance their recognition programs and foster a culture of appreciation, ensuring that employees are given the chance to feel valued and needed. By investing in these initiatives, organizations can not only improve employee satisfaction but also drive performance and ultimately strengthen their bottom line.

Related: Burnout costs employers $21,000 per employee, study finds

What are programs and incentives employers can implement to drive engagement during this time, and boost bottom line?

Company leaders and HR teams need to rethink their culture, rewards, and recognition programs and get creative with how they recognize and offer appreciation for their teams. Below are a few unique methods that have proven successful at Avia - and can be winning programs for other companies as well:

• Self Nomination Programs: Pitch for Promotion programs empower employees to advocate for their own career growth by allowing them to present a pitch showcasing their achievements and readiness for promotion. A review panel of senior supervisors can evaluate these pitches based on performance metrics, leadership potential, and problem-solving skills, and provide direct feedback to candidates. In the second half of 2024 at Avia – out of approximately 350 employees – about 100 were nominated for promotion, with 32 ultimately promoted. Notably, 20% of the nominees were self-pitched, demonstrating the program's effectiveness in driving engagement and fostering individual growth within the organization.
• Standout Culture Awards: Similar to a “team spirit award” for the workplace, companies can implement initiatives that recognize employees who embody the company's core values in their daily work. The selection process can be based on principles like consistency in demonstrating cultural values, objectivity and fairness to avoid personal biases, and impactful representation to inspire others. Employees can be nominated by company leaders or pitch themselves for consideration.This structured process ensures fairness and transparency while celebrating those who genuinely reflect company values. At Avia, the overall voluntary turnover rate has decreased among the workforce since the "Cultural Stars" programs have commenced.
• Pets in the Office: Allowing employees to bring pets into the office offers various engagement benefits, whether through a shared "office pet" or individuals bringing in their own cats or dogs. First, pets provide comfort and companionship, helping to reduce stress levels and improve overall well-being, which can lead to increased job satisfaction. At Avia, we have fostered and adopted two office cats, where employees take shared responsibility in volunteering to care for the four-legged friends. Since adoption, 65% of our employees have reported feeling less stressed and 88% are happier at work.
  
  • Also, personal pets can serve as conversation starters, fostering interactions among employees who may not typically engage with each other, thereby strengthening team bonds and improving workplace relationships. This pet-friendly policy demonstrates that the company values employee happiness and work-life balance, further driving employee loyalty.

Is employee appreciation directly linked to disengagement?

Yes, there is a direct correlation between the two. When employees feel undervalued or unrecognized, disengagement and dissatisfaction permeates throughout. Positive reinforcement fosters a sense of belonging and loyalty, ultimately contributing to a healthier workplace culture and lower turnover rates. With record low disengagement, it’s even more important that culture and recognition programs acknowledge and celebrate employees who embody the company's core values, ensuring that their contributions are recognized and valued.

Is there anything else you want to add?

A flourishing workplace culture today demands more than competitive salaries; it centers on nurturing connections and a sense of belonging. Beyond formal recognition programs and cultural initiatives—like having pets in the office—numerous additional strategies can enhance engagement. These may include company-sponsored clubs, sports activities for team bonding, annual retreats, and complimentary meals that promote employee well-being and informal interactions. Collectively, these initiatives contribute to an environment where employees feel appreciated, engaged, and motivated to excel, driving organizational success. Overall, investing in your team means investing in your company.