Great Detachment: Gen Z leads workplace disengagement crisis
NEW YORK, UNITED STATES — The global workforce is facing a looming crisis of disengagement, with experts warning of a “Great Detachment” on the horizon.
This phenomenon is particularly pronounced among Gen Z workers, who are setting new boundaries in the workplace.
The cost of employee disengagement
Employee disengagement is proving to be an expensive problem for companies worldwide.
According to Gallup data, the cost of disengagement could exceed $8 trillion globally, with disengaged employees costing their employers the equivalent of 18% of their annual salary.
Richard Wahlquist, CEO of the American Staffing Association, describes the drop in employee engagement as the “biggest challenge” facing companies today.
“We’ve got a vast majority of workers in every single office that are either not engaged or actively disengaged,” Wahlquist told Business Insider.
U.S. workforce engagement has declined to its lowest point in over a decade, with 4.8 million fewer employees feeling engaged in their roles as of early 2024, according to a Gallup study.
Gen Z’s shifting workplace values and expectations
Gen Z workers, expected to make up 27% of the workforce by 2025, are often associated with concepts like “quiet quitting” and viewing a job as just a job. However, this perspective may be misunderstood.
Khyati Sundaram, CEO of Applied, suggests that Gen Z’s approach to work is more about setting boundaries and prioritizing values such as work-life balance, transparency, and mental health support.
“Gen Zs are getting stereotyped because they’re voicing it,” Sundaram stated. “It’s not new. It’s the voicing it that’s new. And the judgment that comes associated with that.”
An Applied survey of 2,001 UK adults found that almost half (47%) of Gen Z workers had a career gap of six months or more and were four times more likely to take time out to travel. This reflects a generational shift in attitudes towards work and career progression.
The impact of COVID-19 on workplace trust
The COVID-19 pandemic has also played a significant role in shaping workplace attitudes.
Skillsoft Global Head Of Coaching Leena Rinne points out that the pandemic has created a “crisis of trust” in the workplace.
“Even as we’re coming back to work, some of that connection is being forced, or it’s not natural,” Rinne explained. The pandemic, coupled with recent layoffs and economic uncertainties, led many employees, particularly younger ones, to question their commitment to their organizations.
Addressing the disengagement crisis
To address this growing disengagement, companies need to invest in building trust and valuing their employees.
This includes acknowledging the priorities of younger workers, providing coaching for leaders, and creating a culture where employees feel their work matters.
Skillsoft’s initiatives, for example, have seen a 41% increase in engagement among leaders who received targeted coaching. “If you’re looking at culture, results, innovation, creativity, all of those things are better when we invest in our teams a little bit,” Rinne noted.
As the workforce continues to evolve, companies that adapt to these changing expectations and prioritize employee engagement are likely to fare better in retaining talent and maintaining productivity in the face of the looming “Great Detachment.”
