In the News
Employee Disengagement Now Costs the Average S&P 500 Company Up to $355 Million a Year.
A widely cited McKinsey analysis puts a hard dollar figure on a problem most executives already sense but rarely quantify: disengagement costs a median-size S&P 500 company between $228 million and $355 million every year in lost productivity. That’s not a rounding error on an HR budget. It’s a number that belongs in the same conversation as revenue targets and margin.
This lands at an odd moment. SHRM’s own 2026 research found 72 percent of HR professionals say worker expectations of employers are rising, even as the same workers and their employers agree that effective leadership and management is the top unmet need in the building.
The Gap Between Feeling Heard and Feeling Ignored
SHRM’s data shows exactly where the dollar figure comes from. Among workers who believe their organization effectively addresses workplace needs, 91 percent report genuine job satisfaction. Among workers who view their organization as ineffective at that same job, satisfaction craters to just 44 percent, and 51 percent say they’re at least somewhat likely to leave within the year.
That’s the McKinsey figure driving the headline, and the SHRM data explains the mechanism behind it. Disengagement isn’t a vague morale problem. It’s a direct, measurable path from “my organization doesn’t address what I need” to lower output, higher turnover risk, and a nine-figure line item that never shows up cleanly on a P&L.
Speakers on Workplace Culture & Leadership
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