It is quite easy for business leaders to rebuff employee engagement. Thanks to a widespread misconception: it won’t affect the bottom line. If employees aren’t happy at work, it doesn’t matter, since they are still working for you, right?

Wrong! Because engagement, satisfaction, happiness or whatever you prefer calling it has a direct and tangible impact on your company’s revenue and efficiency.

Yes, unhappy or dissatisfied employees cost billions to companies all over the world every year. In fact, the revenue drain resulting from unhappy employees can even throw a business off the track or make it go bankrupt, to say the worst.

One of the most prominent and common causes for unhappy employees is low salary.

Yes, low salaries often below industry standards for a particular role is sighted as the key reason for increasing employee turnover rates in most of the organizations these days.

Here is a rundown on how unhappy employees can cause a dent in your business:

Today’s workplaces are plagued with alarmingly low levels of engagement. In fact, studies have shown that 6 out of every 10 employees aren’t working to their full potential, which is affecting businesses more than it meets the eye.


Plummeting productivity

If an employee is unhappy with his/her job, it will reflect in his/her productivity. Frequent procrastination is a flashing sign that the employee simply doesn’t want to do his/her job. This often results in decreased productivity and quality problems.

This is the reason managers and entrepreneurs ought to conduct pulse surveys to fetch employee feedbacks on a regular basis. Employee feedbacks help businesses and HR managers unearth loopholes in company culture, if any.

Talking about pulse surveys, many smart companies these days are opting for HR management software solutions to engage with their employees in a smart and quick way.


Revenue deflation

Employees when unhappy be it due to any reason leads to revenue loss in some or the other aspect. For instance, an unhappy salesperson would stop working hard to close more deals thus, resulting in revenue loss.

Dissatisfied employees are prone to exhibit poor work ethics along with poor communication and bonding with other employees. The problem if not addressed can transcend to the customers of your business thus, hampering your brand reputation.


Blotched brand reputation

Blowing a company’s brand reputation doesn’t take much. Unfortunately and most oft, it stems from actions made by a dissatisfied employee. Even a single adverse action or comment can stir negativity about your brand.

The worst, it can even go viral. The more exposure such negative events fetch, the worse it is for your brand’s reputation. Worst! Your customers may even boycott your brand forever.


Brand loyalty goes for a toss

When your workforce is unhappy, their loyalty towards the brand tend to decrease as well.

They would refrain backing the company in the event of a PR crisis. Most importantly, the negativity from such employees would affect the morale of other employees throughout the company.



For a company to stay ahead of the curve, it ought to breed happy employees. Understand that your employees are the sole torchbearers for your business.

The moment you come across any red flags that hint for decreased productivity or morale, it is time to chip in and fix the issue.


Anwar Shaikh writes about startups, human resources, cloud technology, chatbots, analytics and all things technology. A self-trained writer, Anwar writes for Pocket HRMS, a leading provider of cloud based payroll software for small and mid-sized businesses across India.