Teachable moments #45 - The Cost of Unhappy Employees: How Disengagement Hurts Business

We can all spot the difference between a happy and an unhappy employee—especially in customer-facing roles. Imagine it’s a Sunday morning, and you take your family out for coffee. You step into a café, looking forward to a warm drink and a treat, but the barista is clearly not having a good day. When you ask to warm up some milk for your child, they curtly inform you it will cost the same as a latte. When you request a splash of milk in your coffee, they ask for an extra two dollars as per company policy. Technically, they haven’t done anything wrong, but the experience leaves a sour taste. Will you return? Probably not.

Happiness and work don’t always go hand in hand. Many employees feel stuck in uninspiring jobs, leading to disengagement, low motivation, and a negative attitude that customers immediately pick up on. While it’s unrealistic to expect employees to be joyful every day, a workplace filled with unhappy people can be damaging.

Unhappy employees often disengage, doing the bare minimum. Their lack of enthusiasm is noticeable and can turn even routine interactions into unpleasant experiences. In customer- facing roles, a positive attitude brightens the experience, while a negative one—intentional or not—diminishes it. Even if an employee hasn’t done anything objectively wrong, a customer might simply feel, “That barista just wasn’t nice.” And with that, their satisfaction drops.

Within teams, negativity is contagious. Disengaged employees bring down morale, making collaboration difficult and increasing conflicts. When people don’t feel connected to their work, they are less likely to support colleagues, leading to a siloed environment rather than a thriving team.

The solution? Companies must prioritize engagement by fostering a culture of purpose, recognition, and growth. Leaders who observe, listen, and support their employees create workplaces where people feel valued—and happy. And when employees are happy, customers return, teams flourish, and businesses thrive.

Have you ever noticed the difference between happy and unhappy employees?

How did the latter make you feel?