Well, this is discouraging news…

Disgruntled employees cost U.S. companies an estimated $1.9 trillion in lost productivity last year, according to new research from Gallup, putting a huge price tag on workplace unhappiness.

The stakes are high for companies because an engaged workforce increases productivity that helps boost sales and profit.

In 2023, employees in the U.S. continued to feel more detached from their employers, with less clear expectations, lower levels of satisfaction with their organization, and less connection to its mission or purpose, than they did four years ago. They are also less likely to feel someone at work cares about them as a person.

These are among the findings of Gallup’s most recent survey of U.S. employee engagement, which stagnated for the second half of 2023 following a slight improvement earlier in the year.

On a positive note, the percentage of actively disengaged workers has declined from 18% in 2022 to 16% in 2023.

These troubling statistics once again reinforce the enormous importance of incentive, recognition and reward programs, combined with enlightened management practices. The research, together with All Star Incentive Marketing decades of results-based program experience, proves this idea.

One significant benefit of employee recognition and reward programs is that they indeed increase productivity. When employees are motivated and engaged, they are more likely to work harder and produce better results. Research conducted by our partners at the Incentive Research Foundation has shown that incentive programs can increase employee performance by as much as 44%.

In addition to boosting morale and increasing productivity, employee recognition and reward programs also have a positive impact on employee retention. When employees feel valued and appreciated, they are more likely to stay with their employer. A study conducted by WorldatWork found that 68% of companies with recognition programs had a lower turnover rate than those without.

Lastly, employee recognition and reward programs can also have a positive impact on a company’s bottom line. When employees are motivated and engaged, they are more likely to produce high-quality work and generate more revenue for the company. The Incentive Research Foundation found that companies with employee rewards programs had an average of 9% higher revenue growth than those without.

Despite the discouraging news about disgruntled employees, there are some good signs in the data, as well as effective and proven solutions to foster employee engagement, maintaining solid employee retention levels, and drive employee productivity.

Looking to pump up your productivity numbers? Our team at All Star Incentive Marketing has the expertise with solutions to inspire and motivate your team at all levels. Contact us to learn more.