The Cost of Employee Disengagement—and How Coaching Can Fix It
Mar 10, 2025
Employee disengagement is more than a morale issue—it’s a business crisis. 85% of employees worldwide feel disengaged at work (Gallup), leading to massive financial losses. In fact, disengagement costs companies $8.8 trillion annually, nearly 9% of global GDP.
The Hidden Costs of Disengagement
For a company with 100 employees, disengagement can result in $2.5M+ in annual losses due to:
🔻 Productivity gaps – Disengaged employees are 15% less efficient
🔻 High turnover – Teams with low engagement see 25%+ attrition
🔻 Absenteeism – Disengaged employees take 2.5+ extra sick days per year
🔻 Quality errors – Low engagement leads to 60% more mistakes (HBR)
These numbers add up fast, affecting profitability, company culture, and overall business success. But the good news? These losses are preventable.
The Solution: Coaching as a Strategic Investment
Coaching isn’t just a “nice-to-have”—it’s an essential tool for re-engaging teams and improving business outcomes. Here’s why:
✅ Boosts Productivity – Teams with strong coaching see 21% higher performance (Gallup)
✅ Reduces Turnover – Employees who feel supported are 4x less likely to quit
✅ Sparks Innovation – Coaching fosters psychological safety, leading to greater creativity
✅ Strengthens Leadership – Coaching transforms managers from taskmasters into true leaders
The ROI of Coaching
Companies that invest in coaching see tangible results. Research by IBM shows that organizations that prioritize coaching experience 7x higher 5-year revenue growth. When employees feel valued and supported, they perform better, stay longer, and drive innovation.
Is Your Organization Addressing Disengagement?
Ask yourself:
👉 Are you measuring disengagement? (Surveys, exit interviews, performance trends)
👉 Do your managers coach, or just direct?
👉 Is your L&D strategy proactive or reactive?
The question isn’t “Can we afford coaching?”—it’s “Can we afford NOT to invest in our people?”
If disengagement is holding your team back, let’s talk. A small shift in mindset can create massive results for your business.
📅 Want to see these results in your company? Get a customized coaching proposal within 24 hours!
🔗 Request a proposal now: Fill Up This Form.