What Disengagement is Costing Your Business
And What You Can Do About It
Employee engagement isn’t just a “nice to have.” It’s not a buzzword. It’s a business imperative—and when it’s low, the costs are staggering.
According to Gallup’s most recent State of the Global Workplace report, low employee engagement is costing the U.S. economy $1.9 trillion annually. That’s trillion—with a “T.” This figure represents lost productivity, higher turnover, absenteeism, and the ripple effects of underperformance across teams and organizations. And while this may feel like a national-scale issue, the reality is: it’s playing out one team at a time.
You don’t need to be the CEO to move the needle. In fact, team leaders have more influence over engagement than anyone else in the organization. Gallup research has consistently shown that 70% of the variance in employee engagement is tied directly to managers. Your day-to-day actions, your approach to communication, recognition, accountability—it all matters more than you think.
If the cost of disengagement is measured in trillions, the opportunity in front of you is just as big.
The Real Costs of Low Engagement (That You Feel Every Day)
You’ve seen the symptoms of low engagement before:
Tasks take longer than they should.
People are physically present but mentally checked out.
Meetings go nowhere.
Feedback loops break down.
High performers quietly start job hunting.
These signs aren’t just annoying. They’re expensive. The average disengaged employee costs a company 18% of their annual salary in lost productivity. Multiply that across even a small team, and the financial impact adds up fast.
And then there’s turnover. Disengaged employees are almost three times more likely to leave. Replacing them costs anywhere from half to twice their salary, not to mention the time and energy you’ll spend onboarding someone new.
So, yes—engagement might feel abstract, but its consequences are anything but.
What You Can Do (That Actually Works)
The good news is you don’t need to implement a fancy engagement platform or wait for a company-wide initiative to make progress. Engagement starts at the team level. And as a manager, you have more control than you think.
Here are seven things you can do—starting now—to build a more engaged team:
Set Clear Expectations
Ambiguity is an engagement killer. When people don’t know what’s expected of them, they can’t meet or exceed expectations—and that leads to frustration and disengagement. Be specific about goals, responsibilities, and what success looks like. Revisit those expectations often, especially when priorities shift.
Recognize Good Work (Frequently)
People don’t want to feel invisible. Recognition is one of the simplest, most powerful engagement tools you have—and it doesn’t have to come with a budget. A sincere thank you, a Slack shout-out, or a moment of public acknowledgment in a meeting can go a long way. The key is to be specific: tell them what they did and why it mattered.
Give Regular, Constructive Feedback
Feedback isn’t just for annual reviews. High-performing teams thrive on consistent, real-time input. Make it a habit to provide quick course corrections and celebrate small wins. The more frequent and thoughtful your feedback, the more connected people feel to their work—and to you.
Have Real Career Conversations
People want to grow, and if they don’t see a future on your team, they’ll find it elsewhere. Don’t wait for them to bring it up. Make career development a regular topic in your 1:1s. Ask questions like: What do you want to learn next? What kind of work excites you? How can I help you get there?
Ask for Input—and Act on It
Engagement rises when people feel like their opinions count. But asking for input isn’t enough. You also have to follow through. Whether it’s a new process idea or a concern about workload, take the feedback seriously. If you can act on it, do. If you can’t, explain why.
Build a Culture of Trust
Trust isn’t built in grand gestures—it’s built in the little things: following through on promises, being transparent, admitting when you don’t have the answer. When your team trusts you, they’ll speak up, take risks, and bring their full selves to work.
Make Purpose Part of the Conversation
People want to feel like their work matters. It’s easy to lose sight of the bigger picture, especially in fast-paced environments. Take time to connect daily work to the broader mission—how this project helps a customer, how this process improves the team’s impact, how their role contributes to the company’s success.
Conclusion
If engagement feels overwhelming, you’re not alone. You’re juggling multiple priorities, dealing with resource constraints, and trying to keep your own head above water. But the truth is: even small changes in how you lead can have an outsized impact.
Start with one thing. One expectation clarified. One piece of feedback delivered. One person thanked. Those moments add up—and over time, they build a culture of engagement that benefits everyone.
Because when your team is engaged, they don’t just work harder—they work smarter, stay longer, and care more. That’s good for them, and it’s really good for business.
And in an economy losing trillions to disengagement, that kind of leadership is not just helpful. It’s essential.