3 Reasons Why Companies Aren’t Investing In Employee Engagement

3 Reasons Why Companies Aren’t Investing In Employee Engagement

Have you ever thought to yourself, “I don’t feel motivated and my manager doesn’t give me any incentives to perform”?  If so, you are not alone.  Dale Carnegie Training, an international leader in performance and corporate training, issued an employee engagement study that found that less than 25% of employees are fully engaged (motivated) in the workplace.

Unfortunately, companies are beginning to feel the burn to the bottom-line; unmotivated employees lead to a decrease in productivity, and lower quality work. Additionally, high turnover occurs, and according to Zane Benefits, costs 60-75% of the unmotivated employee’s salary to replace.

With all of these facts available why aren’t companies investing in employee engagement in order to motivate their employees?

1. There’s a lack of resources

This is probably one of the greatest factors that prevents managers from offering incentives to motivate employees.  Even though the economy is gaining traction and should be back to pre-recession growth by the end of 2014, companies are still unwilling to invest in their employees.  This is often attributed to short-sighted organization who focus on current or next quarter profits and thus leave no budget to compensate dedicated employees accordingly.

2. They believe that it’s all about the money

This is another failed assumption by managers that employees are only motivated by money and to solve the problem is to simply throw money at it.  However, several scientific studies from all over the world say the break-even point between salary and motivation is around $75,000 annually, taking into account cost-of-living.  According to Bright Hub, money can only be used as a short-term motivational tool for task performance but has no effect on long-term productivity.  Also, to use money as a motivator, it also has to coincide with a company’s organizational structure and employee’s preferences for specific incentives.  If an employee is dissatisfied with the company as a whole, no amount of money is going to increase their motivation.

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3. They’re hiring managers, not leaders

I know from experience and others around me that a lot of managers receive promotions or are hired based on individual performance, not their ability to constructively manage, inspire and lead others.  This leads to inexperienced managers using fear and other obsolete tools to manage employees and not lead their teams to better performance.  We can’t blame them; most managers don’t intend to manage this way but it’s usually unavoidable due to lack of experience and training.


There are a myriad of additional factors as to why management isn’t investing more in employee engagement and motivation – it’s a conundrum to even the most seasoned researchers in organizational behavior.  As business evolves and employees become more empowered, managers and companies will be forced to accommodate these needs or be pushed out of the marketplace.  A company is only as good as the employees who work there and all companies would do well to take this to heart.


About the Author

Colby Olen, is an Account Executive and entrepreneur interested in travel and employee empowerment.  In the mood for some good reads and thoughts about world travel and business?  Check out my co-sponsored blog and make a smile.


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