How a Lack of Employee Incentives Costs Companies Billions.
Fear may keep employees in their seats but only engagement makes them perform.
Data shows that quit rates are currently low but that doesn’t mean workers are suddenly more loyal to their employers. The reality is that with fewer opportunities on the market, many employees are hesitant to leave their positions.
For some employers, this looks like an advantage. If people are staying then the assumption is that morale doesn’t matter as long as the work gets done and revenue continues to grow. However, the issue with that mindset is that it overlooks the long term cost of disengaged employees.
Research consistently shows that recognition, respect, and growth opportunities are directly tied to retention and performance. Without these, morale declines, and when morale declines, productivity and innovation follow. Workers may stay but not out of commitment. They stay because they feel they have no better options which can be even more damaging than turnover.
This same principle applies to leadership. One ineffective manager has the power to disrupt an entire team. Gallup data shows that 70% of a team’s engagement comes down to the manager. Keeping a manager who consistently diminishes morale is more expensive than replacing them because turnover will continue at the team level until the root issue is addressed.
Employers who want to remain competitive must approach their workforce as partners in growth. Recognition, psychological safety, and real opportunities for advancement are not luxuries, they’re cost-effective strategies for retention and performance. Companies that create environments where workers feel invested are the ones that sustain loyalty, even in a tough market. According to Gallup, organizations with highly engaged employees are 21% more profitable and experience up to 59% less turnover, saving millions in rehiring costs and strengthening long term competitiveness.
Low quit rates shouldn’t be mistaken for loyalty. The smartest employers know that long term success comes not from holding on to workers, but from giving them reasons to stay. When the job market shifts again, the companies that invested in engagement will have loyal, motivated teams ready to drive the next wave of growth.
NEW JOBS💼
Givebutter | Sales Development Representative | Remote in US | $65K + $50K in commission
Highspring | Accounting and Finance Executive Recruiter | Houston, TX | $45K - $70K
Highspring | Executive Recruiter, Accounting & Finance | Houston, TX | $45K - $75K
Get AfroTech Insider at 10% off with code BTP10🔥
The AfroTech Insider membership gives you more than entry to the AfroTech conference, it provides year‑round support for your professional development. Members receive a free AfroTech conference pass, workshops, bootcamps, intimate networking sessions, resume and interview coaching, and a chance to be featured across AfroTech platforms. For a limited time, the Black Tech Pipeline community can save 10 % on the $599 annual membership by using code BTP10 at checkout (expires Oct 31).
Join a community that’s invested in your growth here!