Why are Employees Not Engaged at Work? The Answer May Surprise You
Recently, I went to the grocery store to pick up food for a family lunch. It was a holiday, and I knew the store would be crowded. So, I was surprised to see only a few open checkout lanes.
“Hardly any lanes open,” said the man next to me. I nodded. (Strangers always talk to me in public—I blame my resting nice face.) “It’s just pitiful,” he continued. I suggested the holiday might have something to do with the lack of employees. He looked at me squarely and shook his head. He was trying to make a point, and I clearly wasn’t getting it. “No. It’s always like this at any grocery you go to. Just pitiful.”
I shrugged, not knowing what else to say. Although I didn’t know him, his talking point wasn’t new to me. I’ve heard it from different people in different forms, but always with the same subtext: Why are employees not engaged at work anymore?
Growing up in a farming family, “hard work” was our dad’s life—and his favorite quality. If someone was a hard worker, they understood what it took to be successful. But if we heard my dad say someone “didn’t want to work,” we all knew what that meant; they had too much time on their hands. They were lazy. And lazy people have no place in a world that requires grit.
Now, to be fair, I do think laziness exists, and some people really do have too much time on their hands. But as an adult working in America, I also see that the situation is much more nuanced than “lazy vs hardworking.”
Employee engagement may sound simple enough, but getting and maintaining a job can be so challenging that people don’t even have a chance to become an engaged professional.
Mental health, disabilities, and access to resources all play a role in a person’s ability to work. It’s not lost on me that people can make six figures in a job that prioritizes their work-life balance, while other people grind at multiple minimum-wage jobs—with companies that don’t care about flexibility at all.
In my opinion, these reasons alone are enough to answer the question, “why are employees not engaged at work?” But if you’re still not convinced, that’s okay. In this post, we’ll discuss the psychological and cultural reasons why work engagement may be low, as well as employee engagement strategies you can use to build up your own team.
Why are employees not engaged at work?
Lack of identity
Inflation and pay discrepancies
Increase in layoffs
Lack of protections
Why are employees not engaged at work: Lack of identity
Unless you buy everything locally, many of the purchases you make are likely connected to an umbrella company. Umbrella companies are made up of other, usually smaller, brands with similar interests. While this business model makes sense financially, it can leave employees feeling unsure of their identity within the larger company.
Some of my earliest jobs were with small, local companies, and many of my former coworkers are still with those companies. That’s because the turnover rate in small businesses tends to be lower than those at larger corporations, and less turnover tends to mean more stability.
When companies are bought and sold again and again, employees can begin to feel whiplash. They may even wonder where they fit in. Without a sense of their team, job, or future with a company, an employee’s sense of professional identity can suffer.
Why are employees not engaged at work: Inflation and pay discrepancies
Of course, identity is just one piece of the puzzle when it comes to work engagement. As with any job, money plays a major role, and we’ve seen many changes in the last century alone.
From the 1940s to the 1970s, for instance, Americans saw unprecedented growth and prosperity, and incomes mostly grew at the same rate across classes. However, in the 70s, we began to see a change: the top earners growing at a much faster rate than middle and lower classes.
What’s more, we’ve seen inflation growth surpass wage growth twice in recent years, both in 2021 and 2023. This means incomes aren’t keeping up with the rising costs of goods and services. And although the federal minimum wage hasn’t increased since 2009, average prices are at least 1.26% higher than they were that same year.
30% of low-wage workers are part of families earning below 150% of the poverty line. This equals out to roughly 16 million people, and it stands to reason that impoverished workers may be less engaged when their basic needs aren’t met—especially if they’re forced to work multiple jobs to keep up.
Raising the federal minimum wage could raise many families out of poverty, contributing to higher engagement and happiness.
Why are employees not engaged at work: Increase in layoffs
If you’re lucky enough to have a comfortable position here in the States, there’s sadly no guarantee it won’t be eliminated. That’s because unexpected layoffs are a major threat to American professionals.
For those of us who lived through the 2008 recession, it’s difficult to forget the shocking images of Americans living in tent cities. Many people lost their homes and jobs, contributing to one of the worst recessions in recent history.
Bearing this in mind, you may be surprised to know layoffs were actually significantly worse during the height of COVID-19.
Even though layoffs have sharply fallen since 2020, the tech sector is still experiencing bouts of volatility. Tech layoffs in early 2023 already exceeded the total number of tech layoffs in 2022.
With such a chaotic few years, is it any wonder that nearly half of Americans are experiencing layoff anxiety? As we’ve discussed before, anxiety can lead to burnout syndrome, a job-related mental disorder. With burnout and layoff anxiety at play, it’s nearly impossible for employees to truly engage with their jobs.
Why are employees not engaged at work: Lack of protections
Although America offers numerous job opportunities, it’s the worst among developed nations for benefits and protections. This combined with layoff anxiety could contribute to work disengagement among employees.
Guaranteed paid vacation days, unemployment benefits, parental leave, and accessible healthcare are some of the reasons that European countries rank higher in protections for workers.
Businesses often have the power to terminate at-will in the US as well, which could be another reason for layoff anxiety. The US doesn’t yet require severance pay for terminated employees, while many other countries are required by law to provide some sort of severance package.
Why is employee engagement important?
So, now that we understand why employees may be disengaged, let’s discuss why positive employee engagement matters.
It’s more than a friendly cashier at the grocery store or even a positive shopping experience; happy employees are up to 20% more productive. This means they don’t just like their work—they’re doing more of it, too. And one of the marks of productivity is low turnover, which can save businesses time and money.
On average, businesses spend over $1200 on training and onboarding—for every new employee. New employees also require more time and resources than the dedicated employees already familiar with company processes. This means by having engaged employees, a company is also saving resources.
So, how can a company increase overall work engagement? Employee engagement strategies can help.
Employee engagement strategies
Pay, promote, & invest
Allow creativity
Cultivate an exciting brand
Make room for fun & freedom
Build a strong community
Pay, promote, and invest in your employees
Perhaps one of the most important employee engagement strategies is employee return on investment. While it may seem counterintuitive to invest in someone the company already employs, nothing could be further from the truth.
In our Creative Careers series, we discuss the effects location and experience can have on salaries. And while this may be the case for some, sometimes a low offer is simply that: low.
Offering employees competitive salaries is important, as it incentivizes them to take positions and stay in those roles longer. With that said, promotions are also a key part of any role. Not only do promotions increase engagement, but they also boost morale and reduce absenteeism.
Another way to invest in employees is through opportunity. Travel, classes, conferences, and offsites are all ways to invest in employees and make them feel part of a team. By giving employees a chance to develop themselves, they broaden their skill sets, which also helps the company they’re with.
Allow creativity
In our post on increasing creativity in business, we talk about the positive skills professionals can gain from creativity: problem-solving, the anticipation and resolution of future issues, and the ability to brainstorm effectively.
The truth is, most of us don’t want to feel like cogs in a machine. Instead, we want to innovate and execute exciting ideas. Maybe that’s why the most engaged employees in one study said their jobs brought out their most creative ideas.
When we pitch ideas, we make ourselves vulnerable. By inviting collaboration, we create space for work engagement, creating relationships and products in which everyone has a say. This is an organic form of team-building, generating an interest in the brand and the greater team, too.
Cultivate a cool brand
A company’s branding isn’t just for prospects and customers; it’s also for prospective employees. Good branding can make a company seem professional, successful, and exciting; poor branding, on the other hand, can discourage people from applying.
Hugh Baby’s in Nashville has unique branding for a retro diner experience
Quality branding touches every aspect of a business, but the logo, colors, website, and overall tone are essential for creating the right look and feel. In order to create the right branding, many companies hire agencies like ours to build an ongoing plan for success.
For some companies, branding needs can be as simple as a social media strategy; for others, a full-scale rebrand may be required. Regardless, companies with strong branding create an emotional bond with customers, creating loyalty over time.
Make room for fun and freedom
Above, we mentioned that offsites are a natural way to invest in employees. But professional events aren’t the only way to encourage community. In fact, fun outings like team lunches, happy hours, and company retreats can be one of the most excellent, unique employee engagement strategies.
That’s because employee engagement activities don’t always have to be about the bottom line. Studies have shown team lunches can increase team productivity, work engagement, overall inclusiveness, and company morale, despite having little to do with actual work. Sometimes, creating an atmosphere where people are free to be themselves can be the ultimate way to create team trust.
Build a strong community
Building a strong community where work engagement can thrive won’t happen overnight. But the things we’ve talked about—like investing in employees, giving them creative freedom, and allowing room for fun organically—are a good way to start.
Giving back is another way companies can build community within the workplace. We’ve talked about the LGBTQ+ nonprofits companies can give to in lieu of simply “supporting Pride.” But that’s just one idea. In fact, there are many ways companies can nurture a sense of purpose within the workplace.
Businesses can offer team-sponsored volunteer opportunities during the work week, host blood drives, raise funding for charitable causes, and give back to organizations in need. And studies show the majority of people would prefer to work for a company that gives back, citing it as a contributing factor when accepting a job offer.
Conclusion
So, why are employees not engaged at work? Well… it’s complicated. As we discussed, there are numerous systemic reasons that contribute to lack of engagement. And although we may experience cultural shifts in the right direction, it’s also possible some of those greater issues will require gradual resolutions.
On the other hand, there are things companies can do in the here and now to promote better work engagement among employees. When businesses invest in their teams, employees are invested in the work. By generating an appealing brand image (and doing the work to be true to that image), companies can attract engaged professionals.
Do you have a company that needs help attracting engaged employees? We offer a number of services, including branding and consultations. Contact us here to discuss your options over a free, introductory consultation.
