As HR leaders in South Africa, we’ve all heard about employee disengagement—but how often do we take a closer look at its true cost? And more importantly, do we understand the long-term consequences this disengagement can have on our businesses in 2025 and beyond?
In many organisations across South Africa, disengagement isn’t just a buzzword; it’s a silent assassin quietly draining your resources and undermining your long-term success. If we continue to ignore this issue, we’re risking more than just a few unhappy employees; we’re jeopardising the financial health and future growth of our companies.
The Research: What the Numbers Say
Let’s break this down with some hard facts. According to Gallup’s research, 17.2% of employees are actively disengaged. For a South African company with 2000 employees, that means approximately 344 employees are disengaged. How much does this cost?
Gallup estimates that each disengaged employee costs the organisation around 34% of their annual salary in lost productivity. So, if the average annual salary in your company is R125,000, the cost per disengaged employee is about R42,500 each year. Multiply that by the 344 disengaged employees, and you’re looking at a R14,620,000 annual loss.
That’s not pocket change. It’s a significant drain on resources that could be invested elsewhere to drive growth, improve employee wellbeing, or enhance customer experience.
A Case Study: The Impact in Action
Let’s look at MTN South Africa, which, like many companies, faced employee disengagement challenges. A few years ago, MTN realised they had a disengaged workforce that wasn’t fully invested in the company’s mission. Employees were simply going through the motions, and productivity was stagnating. This wasn’t just a small issue—it was hurting the business in a real, measurable way.
In response, MTN introduced several employee engagement initiatives, such as leadership development programmes and wellbeing initiatives. They also focused on improving internal communication and transparency. Over time, MTN saw a marked improvement in employee morale, engagement scores, and, crucially, their bottom line. The company’s ability to retain talent and increase productivity helped them strengthen their market position.
This is a great example of how investing in employee engagement pays off. MTN didn’t just recognise disengagement; they took proactive steps to tackle it, resulting in better employee satisfaction and higher business performance.
How to Spot Disengagement in Employees
Disengagement often starts subtly, making it easy to overlook until it becomes a bigger problem. Here are some key signs to watch for:
- Drop in Performance – If an employee who once delivered quality work on time starts missing deadlines, making frequent mistakes, or showing little effort, they may be disengaged.
- Lack of Enthusiasm – Engaged employees bring energy to their work. If someone stops contributing ideas in meetings, avoids collaboration, or seems uninterested in company goals, they could be losing motivation.
- Frequent Absences or Lateness – Increased sick days, long breaks, or arriving late regularly can be signs of an employee disconnecting from their work.
- Minimal Interaction – A disengaged employee may withdraw from team activities, avoid conversations, or seem emotionally distant from colleagues.
- Negative Attitude – If someone who was once positive starts complaining often, showing frustration, or resisting changes, this could be a sign of deeper dissatisfaction.
- Doing the Bare Minimum – Employees who once went the extra mile but now only do what’s necessary (or less) might be disengaged. A lack of initiative is a clear warning sign.
- Increased Mistakes or Lack of Focus – Disengaged employees may appear distracted, make errors they normally wouldn’t, or struggle to stay on task.
Spotting disengagement early allows managers to take action before it affects productivity, morale, and business success. Simple steps like regular check-ins, open communication, and offering meaningful rewards can help re-engage employees before they become completely disconnected.
Quiet Quitting and Task Masking: The New Faces of Disengagement
In today’s world, disengagement doesn’t always look like employees walking out the door or making noise about their dissatisfaction. Terms like quiet quitting and task masking have emerged as modern-day manifestations of disengagement, and they can be even more damaging.
Quiet quitting is when employees do the bare minimum to get by. They attend work, they complete their tasks—but there’s no extra effort, no passion, and no initiative. They’re not going above and beyond, and their work quality often drops, even though they’re physically present.
In the South African retail industry, Shoprite has faced similar challenges. During periods of high stress and change, many employees were “quiet quitting”—they were showing up, doing their work, but not engaging with customers or colleagues in a meaningful way. This left the company struggling to maintain the high standards it’s known for in customer service.
On the other hand, task masking refers to employees who look busy, but aren’t truly engaged. They’re attending meetings, responding to emails, and ticking boxes—but their output and contribution are minimal. They’re simply going through the motions.
This form of disengagement is especially problematic in a country like South Africa, where many organisations are under pressure to deliver results with limited resources. When employees are task masking, you might think they’re productive, but in reality, they’re doing just enough to avoid being noticed. This lack of real productivity can cost your business dearly over time.
The Real Cost of Inaction
The real danger of disengagement isn’t just the immediate drop in productivity or the lower morale; it’s the long-term costs associated with disengagement. Disengaged employees are more likely to leave their jobs, resulting in high turnover rates. Recruitment, training, and onboarding new employees all come at a price—and when you factor in the loss of institutional knowledge, the cost becomes even more significant.
Take SABMiller, one of South Africa’s biggest success stories. Before being acquired by AB InBev, SABMiller made it a priority to invest in employee engagement through initiatives like employee share schemes and leadership development programmes. They realised that in order to keep employees loyal and motivated, they had to focus on fostering an engaged workforce. As a result, they saw higher retention rates, improved productivity, and greater innovation.
Contrast this with other companies that haven’t invested in engagement. They experience high turnover, the costs of constantly hiring new employees, and a lack of continuity that ultimately impacts customer satisfaction and innovation.
The Way Forward: Tackling Disengagement Head-On
So, how do HR leaders in South Africa tackle disengagement? The answer lies in authentic engagement strategies that focus on purpose, flexibility, and growth.
- Align Purpose with Company Goals: Employees are more engaged when they believe their work matters. Companies like Discovery have built strong employee engagement by aligning their organisational mission with individual employee goals. Their focus on wellness and innovation resonates with employees, giving them a sense of purpose.
- Offer Flexibility and Career Development: South African employees value career growth and flexibility. Investing in training programmes, mentorship, and clear career progression pathways will help employees feel valued and motivated. Vodacom offers its employees flexible work options and career development opportunities, which has helped the company retain top talent.
- Foster Open Communication: Create a culture where employees feel comfortable sharing their ideas and feedback. Nedbank is a great example of this, as they prioritise transparency and employee voice in decision-making, leading to higher engagement levels and greater loyalty.
- Recognise and Reward Contributions: Recognition doesn’t always have to be financial. A simple thank you, an employee of the month award, or even public acknowledgment of hard work can make a huge difference. Companies like Woolworths have built a culture of appreciation, making employees feel valued and engaged.
Conclusion: The Cost of Disengagement is Real, But So is the Opportunity
In South Africa, disengagement is a problem we can no longer afford to ignore. The cost of disengagement isn’t just financial; it’s emotional, cultural, and reputational. But the opportunity to turn things around is in our hands.
By investing in authentic employee engagement strategies, we can create a more motivated, productive, and loyal workforce that will help drive our businesses to new heights in 2025 and beyond. If we tackle disengagement now, we can prevent it from becoming the silent assassin of our company’s success.
So, HR leaders, the time to act is now. Make 2025 the year you finally take control of employee engagement.