leader significantly affects subordinates by reducing their engagement—their enthusiasm for their jobs and the meaning and purpose people find at work. • 2013/2017 Global surveys report that a staggering 70 percent of employees are not engaged at work, and according to de Vries (2016), only 4 percent of these employees have anything nice to say about their bosses. • 2013 Gallup reports, in the United States alone, lower engagement translates into an annual productivity loss of around $500 billion. 2017 Gallup reports estimate that actively disengaged employees cost the U.S. $483 billion to $605 billion each year in lost productivity. ✓ Disengaged employees are also more likely to quit their jobs. ✓ Employee turnover incurs a huge burden, including separation costs, damaged morale, and productivity losses associated with the time and resources needed to find and train newcomers. ✓ Between 10 and 30 percent of the employees’ annual salary is lost to turnover costs. ✓ The figure is even higher for replacing leaders since top executive-search firms will charge around 30 percent of the leader’s annual salary on top ✓ When disengaged employees do decide to stay, they are more likely to misbehave, for example, abusing staff, bending the rules, and committing fraud