A Gallup study from 2024 highlights a rising threat across workplaces, quiet quitting, with significant implications for internal auditors, risk managers, and business leaders.
In Switzerland alone:
- 81% of employees are “working to rule” – doing only what’s required, and nothing more.
- Only 9% feel emotionally connected to their employers – one of the lowest engagement levels in Europe.
- 10% have “resigned internally” – they’re still present, but mentally checked out.
This isn’t just an HR concern. It’s a people risk issue that demands urgent attention from audit and risk professionals.
The Hidden Risks of Disengagement
Employee disengagement creates a domino effect across the organization:
- Fraud: Disengaged employees are more likely to override controls or ignore red flags.
- Sabotage: In extreme cases, resentment can escalate into active disruption—like data leaks or internal system sabotage.
- Compliance Failures: Disconnected employees may bypass policies or cut corners, increasing exposure to regulatory breaches.
- Cybersecurity Risks: Human error; often from disengaged or careless employees is a leading cause of security incidents.
- Toxic Culture: A toxic, disengaged workforce drags down morale and performance, spreading negativity across teams.
Why Engagement Must Be Part of Your Audit Strategy
Traditionally, engagement was considered a “soft” HR metric. But today, it’s a strategic control variable. Failing to monitor and mitigate people risk means overlooking one of the most potent sources of operational, reputational, and compliance vulnerability.
Internal audit plans must evolve to include:
- Assessments of engagement levels as part of cultural audits.
- Review of leadership communication and psychological safety.
- Monitoring for behavior patterns tied to fraud or negligence.
People risk is no longer invisible. It’s measurable, impactful, and urgent.