A report finds that Generation Y employees are the least engaged in the workplace on four continents, including North America.

The State of Employee Engagement 2008 report by Princeton, N.J.-based consulting firm BlessingWhite finds that one quarter of generation Y employees on this continent are disengaged compared to 20% of gen Xers and 17% of baby boomers.

The research suggests that the more senior the employees, the more engaged they are.

“Around the globe, senior executives are generally more engaged than front-line managers or individual contributors,” says BlessingWhite CEO Christopher Rice. “Gen Y disengagement levels may reflect, to some extent, their low seniority since more baby boomers would predictability hold leadership roles. Increased engagement is an expected outcome from power and position.”

The consulting firm says there are five levels of engagement: the engaged (high contribution and high satisfaction); almost engaged (medium to high contribution and satisfaction); honeymooners and hamsters (medium to high satisfaction but low contribution); crash and burners (medium to high contribution but low satisfaction); and the disengaged (low to medium contribution and satisfaction).

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“Engaged employees are not just committed or passionate or proud. They’re enthusiastic and in gear, using their talents to make a difference in their employer’s quest for sustainable success,” says Rice. “As a rule, increased engagement results in increased productivity and performance.”

On the other hand, disengaged employees often feel underutilized, are the most disconnected from the organization’s strategy and may indulge in contagious negativity.

“Left to themselves, disengaged workers are likely to look for their next job, or worse, collect a paycheque while complaining and not producing,” he adds. “If they can’t be coached or encouraged to higher levels of engagement, their exit benefits everyone, including themselves.”

The report says that there is no magic engagement pill and employee engagement is such a complex equation that reflects each individual’s unique, personal relationship with work.

At a macro level, the report recommends that employers need to provide resources, tools, and the overall workplace environment needed to support engagement.

And ultimately, at a micro level, employees, with their managers’ help, need to establish a thriving personal connection with their work and carve out a satisfying future in the organization.

To comment on this story, email craig.sebastiano@rci.rogers.com.