Revealed: the staggering global cost of disengaged workers
$1 billion an hour, that is how much disengaged employees are costing the world economy, new research has estimated.
If you want to set your watch, that’s approximately $16.94 million per minute or $282,344 a second.
Economic Impact and Employee Engagement
According to the Gallup State of the Global Workplace 2024 report, low employee engagement now costs the global economy approximately $8.9 trillion USD, which is about 9% of the global GDP. The annual benchmark report reveals how employee engagement is a crucial factor in the performance of companies.
Levels of Disengagement and Loneliness
Globally, 23% of employees are engaged, 62% are not engaged, and 15% are actively disengaged, giving a global disengagement rate of 77%. Active disengagement is particularly costly and problematic, with actively disengaged employees often resisting their employer’s goals. Additionally, 20% of employees experience daily loneliness, with higher levels among fully remote workers.
Desire to Find New Jobs
A significant portion of the global workforce is seeking new opportunities. Approximately 52% of employees are either watching for or actively seeking new jobs. This trend is more pronounced among younger employees and those in hybrid work settings.
Managerial Challenges
Managers are facing increasing negative experiences compared to non-managers. They report higher levels of stress, anger, sadness, and loneliness, despite often being more engaged and thriving than their non-manager peers. This indicates that managerial roles come with significant emotional burdens that can affect overall workplace morale and productivity.
Leaders know workplace stress is a problem — they’ve seen the data, heard it from their colleagues, and experienced it themselves. A quarter of leaders feel burned out often or always, and two-thirds feel it at least sometimes. Many are trying to address it, but often in ineffective ways.
Jon Clifton, CEO, Gallup
Middle East Findings
Employee Engagement in the Middle East and North Africa (MENA)
In the MENA region, employee engagement levels are among the lowest globally. Only 14% of employees are engaged, and the region has seen a 2% decrease in engagement from the previous year.
Based on World Bank figures and the MENA region’s percentage of global GDP, adjusted for the 86% disengagement rate, it is estimated that the annual cost of disengagement for the MENA region, is approximately $445.29 billion USD.
The estimated hourly cost of disengagement for the MENA region is approximately $50.84 million USD/hour.
Stress and Negative Emotions
The MENA region reports the highest levels of daily stress among employees, with 52% experiencing significant stress on a daily basis.
This is an increase of 7% from the previous year and is higher than the global average of 41%.
Additionally, the region experiences high levels of daily anger and sadness, with 32% and 26% of employees, respectively, reporting these emotions.
Economic Conditions and Job Market
The perception of the job market in the MENA region is relatively pessimistic, with only 33% of employees believing it is a good time to find a job, a decrease of 2% from the previous year. This sentiment is reflective of broader economic challenges and uncertainty in the region.
Intent to Leave
In the MENA region, 48% of employees are actively seeking or watching for new job opportunities. This is indicative of widespread job dissatisfaction and a desire for better working conditions and opportunities.
Focus on UAE and Saudi Arabia
Saudi Arabia Specific Findings
Saudi Arabia is undergoing significant economic and social reforms as part of its Vision 2030 initiative, which aims to diversify the economy and improve the quality of life for its citizens.
These reforms include efforts to improve labor rights and employee engagement. Despite these initiatives, the report indicates that employees in Saudi Arabia continue to face high levels of daily stress and disengagement.
Based on World Bank figures and Saudi Arabia’s percentage of global GDP, adjusted for its 72% disengagement rate, it is estimated that the annual cost of disengagement is approximately $92.637 billion USD.
That’s $10.57 million per hour.
Saudi Arabia report lower levels of daily stress among employees than the global average with 28% experiencing significant stress on a daily basis. Meanwhile, 47% of employees are actively seeking or watching for new job opportunities.
UAE Specific Findings
In the UAE, there is a strong emphasis on improving workplace conditions and employee engagement through policy reforms and initiatives aimed at creating a more supportive work environment.
Despite these efforts, the levels of daily stress and disengagement remain high. The Gallup report highlights that economic growth, while beneficial, can lead to increased stress among employees, particularly those in high-responsibility roles.
Based on World Bank figures and the UAE’s percentage of global GDP, adjusted for its 71% disengagement rate, it is estimated that the annual cost of disengagement is approximately $42.0863 billion.
The estimated hourly cost of disengagement for the UAE is approximately $4.803 million USD/hour.
The UAE report lower levels of daily stress among employees than the global average with 33% experiencing significant stress on a daily basis.
Meanwhile, 40% of employees are actively seeking or watching for new job opportunities.
