How Much Do Disengaged Employees Cost You? - Transcend Commercial Real Estate Brokerage

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July 10, 2019

How Much Do Disengaged Employees Cost You?

How Much Do Disengaged Employees Cost You?

Did you know that a staggering 66% of employees are unengaged at work?

That’s actually slightly better than in past years, when 67% of employees weren’t engaged, according to workplace surveys by Gallup.

For employees who are “actively disengaged,” companies are effectively losing 34% of the salaries they are paying those workers. On an average salary of $100,000, that’s $34,000 down the drain per year for each person who is checked out and unproductive on the job.

Those numbers can add up to millions of dollars of wasted investment, lower profit margins and a hit to the bottom line.

It’s even more costly when employees become so disengaged that they quit. Every time a company has to replace an employee who leaves, it effectively costs the equivalent of six to nine months worth of salary for that position to cover recruitment, training and onboarding expenses, according to the Society for Human Resource Management.

Uninspiring office space is partly to blame. In our culture surveys, just 33% of respondents say their office has a positive impact on company culture. 

These statistics suck. 

Workplaces should be inspiring. There should be positive energy and a vibrant design that reflects the company’s brand and enhances its reputation. People should feel good when they walk through the door.

Most importantly, the office layout should have a variety of functional work areas that support all the different kinds of work that people need to do throughout the week — spaces for collaborating with teammates, rooms for small meetings, quiet nooks for one-on-one conversations, and private spaces for focused heads-down work.

We do all this by focusing on ways we can strengthen a company’s culture. We survey employees to uncover powerful insights about what they really want, what helps them feel most productive, and what holds them back. We use that information as a guiding star to create workspaces that employees love.

We also crush it when it comes to getting good deals on office leases. Our firsthand knowledge of market velocity, available space, shadow space, rental rates, tenant improvement allowances and other incentives gives us invaluable insight on whether the landlord is offering competitive terms or whether we can get more concessions (the answer is almost always yes).

In other words, we’re great at creating office spaces that are good for employees and good for the business. Let’s talk about it. You can reach us here.

Does your space reflect & inspire your company’s culture?

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