Money Can't Buy Loyalty

According to the 2023 State of the Global Workplace Study by Gallup, 72% of employees in Europe have psychologically disconnected from their work. This phenomenon, known as "silent resignation," occurs when employees do not understand the meaning of their work and are not committed to it. The study's authors reveal that over half of employees do not feel a sense of belonging with their colleagues or support from management.

The primary causes of silent resignation are psychosocial factors, such as the working atmosphere and well-being in the workplace. Only 28% of respondents cited salary and benefits as decisive factors.

Gallup estimates that low engagement costs the global economy $8.8 trillion annually. For individual companies, replacing a resigned employee can cost anywhere from half to double the original employee's salary (source: Randstad, «die tatsächlichen Kosten der Fluktuation», 22.5.2023).

We at pasos, we believe this turnover rate can be significantly reduced. The good news for employers is that you can make a big difference.

By adopting the agile organizational model of sociocracy, you can foster successful participation. This circular model helps people in your organization experience a sense of purpose and self-efficacy, which, according to the Gallup study, is crucial for preventing silent resignation. Additionally, this transformation makes the organization more vibrant and resilient.

Would you like to learn more? Join our free webinar on 8 August 2024, spoken in German, from 15:30 to 17:00, titled "Erfolgsgeheimnis Soziokratie: Ihr Einstieg in moderne Entscheidungsprozesse." We will soon also hold a webinar in English. Meanwhile, you can discover the benefits and positive effects of the circular organization method on our website.

We look forward to meeting you soon!