438 billion: The hidden cost of poor leadership
The lack of engagement is silently draining the global economy, and it’s no longer a “soft” issue. Recent data shows that poor leadership costs companies $438 billion a year. It’s not just about low productivity, but also turnover, absenteeism, misalignment, burnout, and something deeper: a work model that was never designed for people.
And what’s worse: only 21% of employees worldwide feel engaged in their work. That means almost 8 out of 10 are disconnected from their purpose, their team, or their leadership. This isn’t a minor retention issue. It’s a cultural and operational crisis. The question isn’t why this is happening — it’s why we’re still running companies this way in 2025.
🧠 The leadership gap that’s costing trillions
The quality of leadership is the single most important factor in team performance. It explains up to 70% of the difference between a motivated team and a toxic one. Yet most managers are unprepared and lack the tools to lead in hybrid, fast-changing environments that prioritize experience.
Even worse, manager engagement is also declining. The most affected groups are young leaders and women in leadership roles, who are burning out, shutting down, or simply leaving.
When leadership collapses, culture collapses. And when culture breaks, the company begins to derail.
Now, let’s zoom out: if companies invested in engagement in a meaningful way, we could unlock $9.6 trillion in global productivity. That’s almost 10% of the world’s GDP.
✨ Where Sparkclub comes in
At Sparkclub, we don’t just create engagement tools. We build systems that activate culture, support leadership, and deliver real results.
We use technology to connect people through real, meaningful experiences that go far beyond the classic Friday happy hour. Because connection isn’t about budget — it’s about intention. And when done right, it translates into performance.
Our platform helps leaders to:
- Read signals of mood, friction, and energy in real time.
- Receive recommendations based on actual interests, not assumptions.
- Activate curated experiences and automate incentives through gamification.
What we do is connect the right moment with the right experience. Because culture doesn’t just happen — it’s designed.
📊 A massive market opportunity
The HR Tech industry continues to grow, but many tools still treat engagement as an annual KPI.
Meanwhile, the real market of disconnected employees is massive — over 130 million in Latin America alone. Globally, this problem translates into billions of dollars.
Companies that successfully close this gap won’t just retain talent: they’ll build a competitive advantage based on trust, culture, and human energy.
At Sparkclub, we are building that infrastructure. We transform everyday moments into scalable signals of engagement. We connect data and emotion.
And we help companies move beyond simply having “culture” to achieving real, active connection.
We help companies go from passive culture to active connection.
🔁 From managing to leading
The cost of doing nothing is no longer intangible — it’s measurable. And enormous. But the opportunity to do better has never been clearer.
We believe in leadership backed by systems, powered by data, and guided by purpose. Everything starts when you stop guessing and start building teams that truly thrive.
Sources:
Gallup – State of the Global Workplace 2025