Good morning!
Despite entering the corporate lexicon nearly two years ago, the trend of “quiet quitting,” or choosing not to go above and beyond at work, is still in full swing.
Around 62% of employees globally are not engaged at work, meaning they are doing the minimum required, and detached from their job, according to Gallup’s 2024 State of the Global Workplace report released today. Findings were based on survey data from more than 128,278 individuals based in more than 160 countries.
Even worse, another 15% of the global workforce is actively disengaged at work, or actively opposed to their employer’s goals. These two groups of employees together are costing the global economy a whopping $8.9 trillion, or 9% of the global GDP, annually.
“People don’t want to come to work and just be lethargic and not inspired. But when they don’t get their needs met, that can happen,” Jim Harter, Gallup’s chief scientist of workplace management and wellbeing, tells Fortune. “When they feel that the organization doesn’t care as much about them, they’re going to give less of an effort.”
Engaged employees benefit their workplace in all kinds of ways. Employers in the top quartile for employee engagement were 78% less likely to experience absenteeism than employers in the bottom quartile. Companies with highly engaged employees also saw 21% lower turnover in high-turnover industries like retail, and 51% less turnover in low-turnover organizations. They also saw a 23% increase in profitability, 68% increase in employee well-being, and 22% increase in participation in the organization.
According to Gallup’s research, workplaces can improve employee engagement by focusing on a few key factors. First is the development and selection of managers who know how to serve as coaches to their employees rather than just bosses. The best companies have also developed a system to choose managers by looking for leaders who are natural motivators, can identify and cultivate worker’s strengths, inspire individuals to take on difficult or unfamiliar work, and encourage colleagues to collaborate with one another. And business leaders should ensure that high employee engagement is built into the company culture.
“A lot of that’s something you can influence and change, if you put the right practices in place,” Harter says.
Paige McGlauflin
paige.mcglauflin@fortune.com
@paidion
Today’s edition was curated by Emma Burleigh.
Around the Table
A round-up of the most important HR headlines.
- Ikea workers were quitting in droves, costing the company $5,000 to replace each employee, so the retail giant turned things around by offering flexible schedules and boosting pay. Bloomberg
- The U.S. government has banned three Chinese companies from exporting their products to America over their connection to exploitative forced labor programs in Xinjiang. New York Times
- Payment companies like PayPal and Visa are paying AI and machine learning experts upwards of $300,000 to tackle company fraud issues and improve the overall consumer experience. Business Insider
- Aerospace company Raytheon is being sued by a 67-year-old alleging age discrimination in the company’s hiring practices because he was never offered an interview despite applying many times. Washington Post
Watercooler
Everything you need to know from Fortune.
Chopping block. Navigation app Waze’s cofounder says his leadership strategy entails giving new hires 30 days to prove themselves in their roles or else they’re fired, arguing they can hurt company culture. —Orianna Rosa Royle
Boss burnout. A majority of managers don’t feel they’re thriving at work, impacting their ability to support the well-being and engagement of staffers they oversee, according to a new report. —Paige McGlauflin
Win some, lose some. Tennis star Roger Federer told Dartmouth graduates that talent will only help them some of the way, and that their success really hinges on making mistakes and constantly learning. —Orianna Rosa Royle
Love and war. Following the firing of its CEO for not disclosing his coworker relationships, oil company BP sent an email to staffers demanding they divulge any intimate work connections from the past three years, or face the boot. —Ryan Hogg