Common knowledge shows effective workplaces rely on collaboration, communication, and positively engaged employees. As a result, disengagement could result in low motivation, decreased productivity, and increased turnover, ultimately impacting an organization’s bottom line.
Why Does Engagement Matter?
In the 1990s, Boston University’s William Kahn first identified this issue as disengagement, and three decades later, it remains a widespread problem.
Gallup's latest report on employee engagement revealed that disengagement in the workplace can have a severe economic impact, resulting in a loss of $8.8 trillion in global productivity last year. Meanwhile, Deloitte found that U.S companies lose around $300 billion annually due to employees not fully engaged. Additionally, median S&P companies lost about $282 million annually due to disengagement and employee attrition last year, as noted by McKinsey’s senior partner Aaron De Smet.
According to Gallup's report, the active engagement rate in U.S. workplaces among employees (both full-time and part-time) dropped to 30%, the lowest in 11 years since 2013, while the active disengagement rate decreased slightly from 17% in the first quarter of 2024 to 16%. This means the U.S. now has a ratio of 1.8 engaged employees for every actively disengaged employee.
A recent survey by the American Psychological Association revealed troubling attitudes among workers: 31% reported feeling emotionally exhausted, 26% felt unmotivated to do their best, 25% expressed a desire to withdraw and keep to themselves, and 19% admitted to experiencing irritability or anger toward colleagues and customers.
The report found U.S. employees were “increasingly detached from their employers, with the workforce reporting less role clarity, lower satisfaction with their organizations, and less connection to their companies’ mission or purpose,” Jim Harter, chief scientist, workplace for Gallup said. “Employees were also less likely to feel someone at work cares about them.”
Gallup’s report found that the decline in employee engagement was most noticeable in:
- Employees under 35, particularly from Generation Z.
- Employees who could work remotely but are required to be fully onsite.
- Employees who work entirely remotely.
On the other hand, numerous studies have consistently shown that engaged employees are more productive and innovative and are likely to exceed expectations in their roles. They are more committed to staying with their organizations and see a long-term future within the company.
When employee engagement is high, companies experience revenue growth rates as much as 2.3 times greater than the average over three years. Simply put, employee engagement is a vital cornerstone for driving competitive business performance — something that cannot be overlooked. When your employees are happy and engaged, everyone wins!
This article will help you understand the common characteristics of disengaged employees, how to spot early signs of disengagement, and how to turn things around. This includes:
- How to spot disengaged employees?
- What caused employee disengagement?
- How to effectively re-engage your disengaged employees?
How To Spot Disengaged Employees?
In an exclusive interview with us, Sophie Wade, founder of Flexcel Network and author of Empathy Works: The Key to Competitive Advantage in the New Era of Work, emphasized that there's a critical difference between employees who are "disengaged" and "not engaged," something resonates deeply with Gallup's findings.
While the former are people who deliberately undermine business activities and morale, the latter are more passive in disengaging; they are just not into their work. "However, the act of their 'not engaging' can be an active decision which some people term quiet-quitting," she said.
According to Gallup's latest report, 52% of the American workforce falls into the "not engaged" category. These employees, often called the silent majority, tend to blend in with the rest of the workforce, making it harder to identify their disengagement.
Disengaged employees are described by Michael McCarthy, founder of Positive Workplace Strategies, as "often lack enthusiasm for their work and fail to find joy in the workplace. While they may complete their tasks competently, they don't go above and beyond to contribute to the organization's broader goals," he wrote in a Havard's Professional & Executive Development article.
“Such employees often need external prompting to remain productive. They tend to be quieter, avoid communication, and shy away from seeking feedback on their performance. Additionally, disengaged employees are less likely to engage with their colleagues, participate in team activities, or attend social events,” Michael concluded.
As a result, while actively disengaged employees make up a relatively small percentage of the entire workforce (16-17%), their behavior can compromise morale and team performance throughout the entire organization.
What Caused Employee Disengagement?
There are numerous reasons as to why your employees are disengaged. The most common ones, according to Sophie Wade, are “they feel they are not trusted, not respected, and their contributions are not valued,” she said. “This extends to them not feeling safe in their work environment and that they don’t belong (to the corporate community).”
Michael also noted that “a previously engaged employee may become disengaged for many reasons, although a lack of autonomy, purpose, and meaning are top of the list.”
“Employees who feel that their work doesn’t matter may indicate that the organization’s mission doesn’t align with the employee’s personal vision of what creates purpose and meaning in life. Humans need to feel that they are doing work that matters — that vision also needs to be in harmony with the company they work for. Lastly, a lack of autonomy or work flexibility can quickly create disengagement. Micromanaging employees revokes their autonomy and the employee then feels distrusted.” - Sophie Wade
Sophie agrees, adding that “it is important for each employee to feel that they matter and their work matters—or why bother? When employees feel that way too often they stop engaging,” she said.
How To Effectively Re-engage Your Disengaged Employees?
The very first thing a leader must have when it comes to dealing with your disengaged employees is empathy, according to Sophie Wade. “When you connect with someone’s situation, you can take action based on what they are going through and adjust your communication, reactions, and circumstances so that they can feel included and valued,” she told me.
"Empathy is the ability to put yourself in someone else’s shoes, see the world through their eyes (as them, not you) and feel what they are feeling. For example, when an executive leader or middle manager practices empathy and solicits all team members’ opinions, listens deeply to what each person says, asks questions to check their understanding, reconfirms by restating what was said, each team member can feel heard, their opinion valued (even if their manager didn’t agree with it!), and that they are respected and included in the corporate community. Then they are much more likely to care about their work, the company, and achieving (or exceeding) their goals." - Sophie Wade
Sophie said that employees working in the office can feel just as disengaged, ignored, disrespected, or undervalued as those working remotely or in a hybrid setup. This can happen when managers fail to build relationships or don’t empathize with employees to understand their strengths and how best to support their performance.
Many managers rely solely on office presence to foster what they believe to be a productive culture rather than actively cultivating a trust-based environment where all employees—regardless of location—feel safe and have a sense of belonging.
She also pointed out that employees working remotely part of the week can feel isolated or excluded if leaders aren’t intentionally building a cohesive corporate culture and taking deliberate, daily steps to keep employees connected across various locations.
Additionally, Sophie cited an example of disengagement increasing when executives use discriminatory tactics to enforce in-office work. For instance, Dell announced in March 2024 that only employees working in the office would be eligible for promotions, deliberately causing remote workers to be at a disadvantage.
This location-based bias in career advancement is often viewed as unfair and illogical. Such policies, she said, can cause employees to feel disconnected from their employer and less engaged in their work, as they perceive the organization to prioritize location over performance.
Michael McCarthy also emphasizes the significance of empathy in re-engaging employees, stating that it is a challenging but essential process. 'Trying to understand them has a better chance of success,' he asserted, underlining the importance of a compassionate approach.
Moreover, Michael suggests approaching employees in a psychologically safe environment to express concern about noticeable changes in their behavior or performance. Start by asking if they are okay or if something outside of work impacts them. Determine whether the issue is temporary or long-term, and ask how you can provide support.
If the issue is within the organization, this is where you can offer more help. Simply asking, "What could change at work to excite you about being here again?" can lead to valuable insights.
Michael also encourages employees to work on stimulating projects that align with their strengths, allowing them to enjoy their work and perform at their best. Ensure they have autonomy in their tasks while maintaining an open-door policy for support. Provide clear goals, but let them choose how to achieve them, making it clear that their success can lead to new opportunities.
Michael also underscores the role of professional development in supporting employees' career growth. He suggests that offering such opportunities is crucial, especially for those who enjoy learning. This approach not only helps employees reach their full potential but also makes the audience feel invested in their team's success.
Finally, experiment with their feedback on how to improve the workplace. For example, they may suggest changes like flexible remote or hybrid work schedules. Be open to trying new ideas and set clear, achievable success metrics.
"If you give employees a chance to create change themselves, they may quickly re-engage as they create an environment in which they will thrive." - Michael McCarthy
The Bottom Line
Despite the morale of the U.S. workforce being at an 11-year low (especially among Gen Z and fully remote workers), Harter noted that Gallup's research on organizations with high employee engagement found these companies often developed hybrid work environments tailored to their cultures.
They set clear employee expectations and ensured managers received the necessary training and support to lead effectively in this flexible work model.
To put it like Sophie, "Every employee is an individual first, and empathizing with each person is important to understand what makes them tick and what their working preferences are to improve their engagement and performance."
Therefore, fostering a healthy hybrid work environment, underpinned by empathetic leadership, can significantly boost the engagement of your workforce. As Deloitte's report suggests, measuring and managing engagement should be an on-going and always-listening process.
I’m always curious to learn more about how business leaders address and face challenges like disengagement at the workplace. Please feel free to reach out to me here if you have a story to share, want to provide feedback, or ask a question.
Common knowledge shows effective workplaces rely on collaboration, communication, and positively engaged employees. As a result, disengagement could result in low motivation, decreased productivity, and increased turnover, ultimately impacting an organization’s bottom line.
Why Does Engagement Matter?
In the 1990s, Boston University’s William Kahn first identified this issue as disengagement, and three decades later, it remains a widespread problem.
Gallup's latest report on employee engagement revealed that disengagement in the workplace can have a severe economic impact, resulting in a loss of $8.8 trillion in global productivity last year. Meanwhile, Deloitte found that U.S companies lose around $300 billion annually due to employees not fully engaged. Additionally, median S&P companies lost about $282 million annually due to disengagement and employee attrition last year, as noted by McKinsey’s senior partner Aaron De Smet.
According to Gallup's report, the active engagement rate in U.S. workplaces among employees (both full-time and part-time) dropped to 30%, the lowest in 11 years since 2013, while the active disengagement rate decreased slightly from 17% in the first quarter of 2024 to 16%. This means the U.S. now has a ratio of 1.8 engaged employees for every actively disengaged employee.
A recent survey by the American Psychological Association revealed troubling attitudes among workers: 31% reported feeling emotionally exhausted, 26% felt unmotivated to do their best, 25% expressed a desire to withdraw and keep to themselves, and 19% admitted to experiencing irritability or anger toward colleagues and customers.
The report found U.S. employees were “increasingly detached from their employers, with the workforce reporting less role clarity, lower satisfaction with their organizations, and less connection to their companies’ mission or purpose,” Jim Harter, chief scientist, workplace for Gallup said. “Employees were also less likely to feel someone at work cares about them.”
Gallup’s report found that the decline in employee engagement was most noticeable in:
- Employees under 35, particularly from Generation Z.
- Employees who could work remotely but are required to be fully onsite.
- Employees who work entirely remotely.
On the other hand, numerous studies have consistently shown that engaged employees are more productive and innovative and are likely to exceed expectations in their roles. They are more committed to staying with their organizations and see a long-term future within the company.
When employee engagement is high, companies experience revenue growth rates as much as 2.3 times greater than the average over three years. Simply put, employee engagement is a vital cornerstone for driving competitive business performance — something that cannot be overlooked. When your employees are happy and engaged, everyone wins!
This article will help you understand the common characteristics of disengaged employees, how to spot early signs of disengagement, and how to turn things around. This includes:
- How to spot disengaged employees?
- What caused employee disengagement?
- How to effectively re-engage your disengaged employees?
How To Spot Disengaged Employees?
In an exclusive interview with us, Sophie Wade, founder of Flexcel Network and author of Empathy Works: The Key to Competitive Advantage in the New Era of Work, emphasized that there's a critical difference between employees who are "disengaged" and "not engaged," something resonates deeply with Gallup's findings.
While the former are people who deliberately undermine business activities and morale, the latter are more passive in disengaging; they are just not into their work. "However, the act of their 'not engaging' can be an active decision which some people term quiet-quitting," she said.
According to Gallup's latest report, 52% of the American workforce falls into the "not engaged" category. These employees, often called the silent majority, tend to blend in with the rest of the workforce, making it harder to identify their disengagement.
Disengaged employees are described by Michael McCarthy, founder of Positive Workplace Strategies, as "often lack enthusiasm for their work and fail to find joy in the workplace. While they may complete their tasks competently, they don't go above and beyond to contribute to the organization's broader goals," he wrote in a Havard's Professional & Executive Development article.
“Such employees often need external prompting to remain productive. They tend to be quieter, avoid communication, and shy away from seeking feedback on their performance. Additionally, disengaged employees are less likely to engage with their colleagues, participate in team activities, or attend social events,” Michael concluded.
As a result, while actively disengaged employees make up a relatively small percentage of the entire workforce (16-17%), their behavior can compromise morale and team performance throughout the entire organization.
What Caused Employee Disengagement?
There are numerous reasons as to why your employees are disengaged. The most common ones, according to Sophie Wade, are “they feel they are not trusted, not respected, and their contributions are not valued,” she said. “This extends to them not feeling safe in their work environment and that they don’t belong (to the corporate community).”
Michael also noted that “a previously engaged employee may become disengaged for many reasons, although a lack of autonomy, purpose, and meaning are top of the list.”
“Employees who feel that their work doesn’t matter may indicate that the organization’s mission doesn’t align with the employee’s personal vision of what creates purpose and meaning in life. Humans need to feel that they are doing work that matters — that vision also needs to be in harmony with the company they work for. Lastly, a lack of autonomy or work flexibility can quickly create disengagement. Micromanaging employees revokes their autonomy and the employee then feels distrusted.” - Sophie Wade
Sophie agrees, adding that “it is important for each employee to feel that they matter and their work matters—or why bother? When employees feel that way too often they stop engaging,” she said.
How To Effectively Re-engage Your Disengaged Employees?
The very first thing a leader must have when it comes to dealing with your disengaged employees is empathy, according to Sophie Wade. “When you connect with someone’s situation, you can take action based on what they are going through and adjust your communication, reactions, and circumstances so that they can feel included and valued,” she told me.
"Empathy is the ability to put yourself in someone else’s shoes, see the world through their eyes (as them, not you) and feel what they are feeling. For example, when an executive leader or middle manager practices empathy and solicits all team members’ opinions, listens deeply to what each person says, asks questions to check their understanding, reconfirms by restating what was said, each team member can feel heard, their opinion valued (even if their manager didn’t agree with it!), and that they are respected and included in the corporate community. Then they are much more likely to care about their work, the company, and achieving (or exceeding) their goals." - Sophie Wade
Sophie said that employees working in the office can feel just as disengaged, ignored, disrespected, or undervalued as those working remotely or in a hybrid setup. This can happen when managers fail to build relationships or don’t empathize with employees to understand their strengths and how best to support their performance.
Many managers rely solely on office presence to foster what they believe to be a productive culture rather than actively cultivating a trust-based environment where all employees—regardless of location—feel safe and have a sense of belonging.
She also pointed out that employees working remotely part of the week can feel isolated or excluded if leaders aren’t intentionally building a cohesive corporate culture and taking deliberate, daily steps to keep employees connected across various locations.
Additionally, Sophie cited an example of disengagement increasing when executives use discriminatory tactics to enforce in-office work. For instance, Dell announced in March 2024 that only employees working in the office would be eligible for promotions, deliberately causing remote workers to be at a disadvantage.
This location-based bias in career advancement is often viewed as unfair and illogical. Such policies, she said, can cause employees to feel disconnected from their employer and less engaged in their work, as they perceive the organization to prioritize location over performance.
Michael McCarthy also emphasizes the significance of empathy in re-engaging employees, stating that it is a challenging but essential process. 'Trying to understand them has a better chance of success,' he asserted, underlining the importance of a compassionate approach.
Moreover, Michael suggests approaching employees in a psychologically safe environment to express concern about noticeable changes in their behavior or performance. Start by asking if they are okay or if something outside of work impacts them. Determine whether the issue is temporary or long-term, and ask how you can provide support.
If the issue is within the organization, this is where you can offer more help. Simply asking, "What could change at work to excite you about being here again?" can lead to valuable insights.
Michael also encourages employees to work on stimulating projects that align with their strengths, allowing them to enjoy their work and perform at their best. Ensure they have autonomy in their tasks while maintaining an open-door policy for support. Provide clear goals, but let them choose how to achieve them, making it clear that their success can lead to new opportunities.
Michael also underscores the role of professional development in supporting employees' career growth. He suggests that offering such opportunities is crucial, especially for those who enjoy learning. This approach not only helps employees reach their full potential but also makes the audience feel invested in their team's success.
Finally, experiment with their feedback on how to improve the workplace. For example, they may suggest changes like flexible remote or hybrid work schedules. Be open to trying new ideas and set clear, achievable success metrics.
"If you give employees a chance to create change themselves, they may quickly re-engage as they create an environment in which they will thrive." - Michael McCarthy
The Bottom Line
Despite the morale of the U.S. workforce being at an 11-year low (especially among Gen Z and fully remote workers), Harter noted that Gallup's research on organizations with high employee engagement found these companies often developed hybrid work environments tailored to their cultures.
They set clear employee expectations and ensured managers received the necessary training and support to lead effectively in this flexible work model.
To put it like Sophie, "Every employee is an individual first, and empathizing with each person is important to understand what makes them tick and what their working preferences are to improve their engagement and performance."
Therefore, fostering a healthy hybrid work environment, underpinned by empathetic leadership, can significantly boost the engagement of your workforce. As Deloitte's report suggests, measuring and managing engagement should be an on-going and always-listening process.
I’m always curious to learn more about how business leaders address and face challenges like disengagement at the workplace. Please feel free to reach out to me here if you have a story to share, want to provide feedback, or ask a question.
Weekly Insights about the Future of Work
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Get the insider scoop to increase productivity, streamline workflows, and stay ahead of trends shaping the future of work.
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Stay Ahead in the Future of Work
Leading in the future of work is a breeze with FlexOS. Subscribe to our newsletters and stay ahead on AI, Remote Work, and Modern Management.
We curate the most current research, news, trends, and tools to let you work smarter, not harder.
Weekly Insights about the Future of Work
The world of work is changing faster than the time we have to understand it.
Sign up for my weekly newsletter for an easy-to-digest breakdown of the biggest stories.
Unsubscribe anytime. No spam guaranteed.
Stay Ahead in the Future of Work
Get AI-powered tips and tools in your inbox to work smarter, not harder.
Get the insider scoop to increase productivity, streamline workflows, and stay ahead of trends shaping the future of work.
Unsubscribe anytime. No spam guaranteed.
Stay Ahead in the Future of Work
Leading in the future of work is a breeze with FlexOS. Subscribe to our newsletters and stay ahead on AI, Remote Work, and Modern Management.
We curate the most current research, news, trends, and tools to let you work smarter, not harder.
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