Supply chains resemble actual metal chain, and each employee is critical in bringing or losing company revenues.
Have you seen disengaged employees on your team and wondered how much they cost your employer in lost revenue?
Consider this: Employees in supply chains resemble an actual metal chain. Each is a step in the product's creation and distribution, with the critical role of turning an idea into a tangible, deliverable product. However, when the link weakens, the entire chain loses strength or breaks altogether.
Disengaged and distracted employees are one of the weakest links in the supply chain. They cost U.S. employers an estimated $350 billion annually in lost revenue and are more likely to quit jobs, resulting in another $11 billion that employees spend trying to replace them, according to statistics from the Bureau of National Affairs.
The enormous financial cost is only part of the story. Consider the fact that 70% of employees are contributing to that bill. While many workers are disengaged, each demonstrates disengagement differently. Some simply produce low quality results, while others spend their working hours pretending to work while secretly taking care of personal business. Still, others choose not to show up at all.
Regardless of how it manifests, disengagement occurs in 70% of almost any team's personnel, which means the other 30% of employees get stuck taking up the slack. This is demoralising for those who are struggling to maintain a strong supply chain with little to no help from their disengaged colleagues.
To resolve this issue, leaders throughout the supply chain need to take action. However, action doesn't mean harshly disciplining distracted employees or paying them higher salaries in hopes they'll work harder. It means taking the time to understand what is causing disengagement in the first place, and then working to fix those underlying issues. While it takes some work on the front end, increasing employee engagement creates a stronger, more efficient supply chain in the long run.
An infographic below gives some ideas on getting your workers plugged in.
Figure 1: Employee disengagement costs $350 million revenues anually.
First published by EBN.