Actively disengaged employees can cost a company quite a hefty amount each year. American analytics firm Gallup points out that disengaged employees have 37 percent higher absenteeism, 18 percent lower productivity and 15 percent lower profitability. Translating that into dollars, a company would be looking at a loss of 34 percent of a disengaged employee’s annual salary.

Despite acknowledging this fact, many companies fail to implement the right strategy to tackle this issue, according to a world-renowned business coaching company, ActionCoach.

ActionCoach surveyed over 10 big corporations in Indonesia and found that only one of them implemented effective employee engagement strategies while over 90 percent companies simply hold team outings. However, the business coaching expert said the latter has proven to have a short-term impact of employee engagement.

“To engage employees, you need to a mixture of communications training, team building, self-confidence and performance, and focus group discussion to boost leadership skills. However, most team outing activities only focus on entertaining outdoor activities without leadership or team development.

“An effective employee engagement program should be customized to suit different clients and different employees who play various roles in the company,” said Prijono Nugroho, Managing Partner of ActionCoach Jakarta.

ActionCoach offers a customized 12-week action-based program, called the Group Activation System.