Unmotivated staff are not being addressed by companies across Europe despite workforces being scaled back, research shows.
Just 11% of companies frequently assess and weed out workers who demonstrate continually low engagement.
But 83% of senior executives felt that it was one of the top three problems threatening their company. This is despite the tough economic conditions facing businesses across Europe.
The research was carried out by global management consultancy Hay Group and the Economist Intelligence Unit (EIU).
It also shows that 60% of companies rarely or never talk about staff engagement at senior level.
Ben Hubbard, European Head of Engagement at Hay Group, comments: "These figures are a major concern, especially when you consider that many organisations have scaled back during the economic crisis and are relying on a smaller workforce to drive their business through to recovery.
"It is vital that businesses act now, as a lack of motivation can easily spread throughout an organisation."