21 May​ 2025

How Burnout and Disengagement Are Bleeding Your Business Dry

by​ Jason Haller

It's time we talk about the elephant in the room – the one draining millions from your bottom line while everyone pretends not to notice: disengagement and burnout, the twin silent killers of organizational performance.

After working with dozens of organizations across industries, I've witnessed how leaders consistently underestimate the financial impact of these issues. They're treated as fuzzy "people problems" rather than what they truly are: massive profit leaks that can be measured, managed, and fixed.

Here’s a powerful statistic from the Gallup 2025 State of the Global Workplace Report:

  • Manager engagement dropped from 30% to 27% in just one year, while manager wellbeing fell even more sharply — young managers (under 35) saw a 5% decline, and female managers saw a 7% drop.
  • Seventy percent (70%) of team engagement is directly attributable to the manager.
  • Gallup warns that without addressing manager burnout, the global economy risks losing up to $438 billion in productivity annually.

Understanding the true cost is the first step to fixing disengagement and burnout. Let’s take a closer look.

The Math Is Undeniable

For a mid-sized organization of 150 people with an average salary of $75,000, the costs are staggering:

  • $2.2M lost in productivity - effective output drops by approximately 15% when disengaged/burned out
  • $1.7M in turnover expenses - burnout-induced departures costs 100-150% of annual salary per person
  • $3.9M in client revenue impact - poor/slow service, low creative energy, missed opportunities translates to ~10% reduction in revenue retention and growth

Altogether, that’s $7.8M per year leaking from one 150-person organization. And these numbers only grow with company size.

 

Here's your quick calculation formula:

Annual Cost of Disengagement =

(Number of Employees × Average Salary × 0.15) + // Productivity Loss

(Annual Turnover × Average Salary × 1.25) + ​ ​ ​ // Turnover Costs

(Annual Revenue × 0.10) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ // Client Revenue Risk

 

The Before Picture: The Costly Patterns We Spot First

When we first engage with organizations, we typically see:

  1. Leadership teams are unaware of where burnout and disengagement are occurring
  2. Random wellness initiatives that don't address root causes
  3. Departments with isolated efforts and competing goals
  4. Technology that creates more stress than it alleviates
  5. No concrete metrics to track the human side of performance

Many organizations implement solutions without addressing the underlying problems first, trying to solve complex, interconnected issues with fragmented approaches. As Bob Pigott, Strategic Programs Director at CAE Technology Services, discovered: "Finding someone who comprehends the intricacies of technology implementation and its alignment with our business goals is a rarity."

 

Our Approach to Real ​ Transformation: Diagnose First, Solve Smarter

Our approach doesn't start with solutions, it starts with diagnostics. Through our Wellness Wave® assessment, we establish baseline measurements across all Five Core Elements™ of organizational wellness.

This diagnostic approach is the factor that makes the difference for clients like Vecteris, whose team noted: "The Wellness Wave® program sets a good foundation of knowledge and alignment on the value and possibilities." More importantly, it creates an environment where teams can "honestly bring up some of the contributors to burnout in our organization," getting to the root causes rather than treating symptoms.

We help organizations:

  • Determine the root cause of poor performance and lagging metrics.
  • Identify, quantify, and prioritize the team and organizational-level solutions needed to break down barriers, prevent burnout, and enable peak performance.
  • Educate, coach, and support change initiatives at the individual level, such as how to implement structured "flow blocks" for quality, uninterrupted work time.
  • Redesign meeting protocols to reduce frequency and increase effectiveness.
  • Create clear decision frameworks that reduce cognitive load.
  • Develop recovery practices to match the intensity of the work in the organization.
  • It’s like the old saying, “Measure twice, cut once.”

The After Picture: Measurable Transformation

The transformation is both measurable and meaningful. As a Vecteris team member shared after implementing our methodology: "Start your week with clarity and end it with resolution." This simple shift in approach led to significant improvements in collaboration and productivity.

Within 90 days, organizations typically see:

  • Productivity metrics improved by 20-25%
  • Voluntary turnover decreased by 30-35%
  • Client satisfaction scores increased by 15-20%
  • Team members reporting access to flow states 3x more frequently

Organizations aren’t just seeing better numbers, leaders are experiencing smoother processes and stronger execution. CAE's Head of Sales Operations confirmed the impact: "They took the time to thoroughly understand our process and technology challenges and helped us translate our complex business requirements into clear technical specifications. This thoughtful approach and attention to detail helped us progress toward streamlining our operations and enhancing our overall efficiency and effectiveness."

Where Well-Being Meets Business Results

When organizations invest in employee well-being, they create the foundation for lasting business success. Focus, clarity, and alignment naturally follow, leading to stronger performance.

Bob Pigott from CAE Technology Services shared that Five to Flow’s guidance has been pivotal in helping their leadership team navigate complex decisions. Their guidance turned complex, uncertain conversations into clear and focused discussions.

The results speak for themselves – teams don't just feel better, they perform better. A Vecteris team member put it perfectly about the Discover Flow® progam: "This workshop provided practical, easy-to-implement strategies to improve not only my work habits but also my overall mindset. The emphasis on aligning personal, relational, and professional goals really resonated with me, helping me focus on what matters most."

The Bottom Line

When we enable flow states – those optimal experiences where focus is complete, creativity is enhanced, and performance peaks – we unlock the true potential of our organizations.

The question isn't whether you can afford to address disengagement and burnout. The math makes it clear: you can't afford not to.

Want to calculate what disengagement and burnout are costing your specific organization? Our team can help you run the numbers and identify exactly where the leaks are occurring. Because what gets measured gets managed, turning hidden costs into opportunities for growth and improvement.