McKinsey & Company conducted a study to understand the difference between these two types of employees and how organizations can identify and manage them.

The study found that value-adding employees are those who consistently deliver high-quality work, meet or exceed performance expectations, and collaborate well with their colleagues. These employees are also proactive in identifying new opportunities for the organization and are willing to take on new challenges. Value-adding employees are critical to an organization's success as they drive innovation, increase productivity, and help build a positive organizational culture.

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On the other hand, value-destroying employees are those who consistently underperform, miss deadlines, and fail to meet performance expectations. These employees often have a negative attitude, lack motivation, and do not collaborate well with their colleagues. They may also engage in toxic behaviors such as gossiping, bullying, or undermining their colleagues' work. Value-destroying employees can have a significant impact on an organization's success as they reduce productivity, damage morale, and create a toxic work environment.

The numbers are striking: value-destroying employees can cost organizations up to three times their salary in lost productivity, increased turnover, and damage to the organization's reputation. Therefore, it is essential for organizations to identify and manage these employees effectively

These are big numbers that strike at the heart of value creation. To address the problem, corporate leaders first have to grasp that their workforces are not monolithic when it comes to employee experience and that the tactics to increase performance require a more segmented approach. Leaders can then apply differentiated strategies to groups of employees that boost levels of satisfaction and commitment, performance, well-being, and, ultimately, retention and engagement.

There are six distinct employee groups, or archetypes, across a spectrum of satisfaction, engagement, performance, and well-being. These workers range from the highly dissatisfied and actively disengaged—who comprise more than 10 percent of an average organization and who we believe are destroying value—to a group at the other end of the spectrum that we call "thriving stars." At about 4 percent of an average organization, these super-engaged workers not only perform at high levels themselves but also appear to spread their positive engagement and commitment to others. In between these two poles is a vast middle of workers who experience varying levels of engagement and satisfaction that affect their performance and sense of well-being.

We will focus on the lower side of this classification. There are several strategies for identifying value-destroying employees. One approach is to use data analytics to track employee performance and identify patterns of underperformance or negative behaviors. Another approach is to conduct regular performance evaluations and provide feedback to employees on their strengths and areas for improvement.

Once value-destroying employees have been identified, organizations can take several steps to manage them effectively. One approach is to provide coaching and mentoring to help these employees improve their performance and address any negative behaviors. Another approach is to provide training and development opportunities to help these employees acquire new skills and knowledge.

In some cases, organizations may need to take more drastic measures, such as termination, to manage value-destroying employees effectively. However, this should be a last resort and only used after all other options have been exhausted.

To address the challenge of high dissatisfaction and lower productivity among employees, companies can work to keep thriving stars satisfied and engaged while also creating the same conditions for other types of workers. It's not possible to alter the behaviors of all of the disruptors and mildly disengaged. But leaders can identify those employees who are more likely to respond to thoughtful interventions, including career development opportunities, flexibility, and a greater sense of purpose. This includes setting clear expectations for employee performance, providing regular feedback and recognition, and fostering a collaborative and supportive work environment.

This strategy can reduce costs from lost productivity and build a more resilient and engaged workforce and bring tangible business savings.