Ghost engineers, they’ve been the buzz lately. Ever since that Stanford study dropped, everyone’s talking about how 9.5% of engineers in big companies aren’t really contributing. Think about it: almost 1 in 10 engineers, showing up in meetings, their names on tickets, but their actual output? Almost zero.

Ghost engineers quietly mess up team morale, slow down projects, and cost companies way more than just their salaries. So, let’s dig into what they are, why they happen, and how to fix the problem before it gets worse.

What Are Ghost Engineers?

A ghost engineer is someone who’s technically on the team attending meetings, assigned tasks, and getting paid, but their contributions are either minimal or non-existent. They’re not always slacking; it’s usually deeper than that.

Why Is Everyone Talking About Them Now?

The term “ghost engineer” has been around, but that Stanford study really lit the fire. It showed how remote work has made it easier for some people to disengage, though ghost engineers exist in office setups too. This isn’t just a remote work issue; it’s a management issue.

At a time when companies can’t afford inefficiencies, ghost engineers are a red flag. They’re not just a productivity problem, they're a symptom of mismanagement, burnout, or bad role alignment.

Why Do Ghost Engineers Exist?

Ghost engineers don’t just wake up one day and decide to check out. They’re usually a product of deeper issues in the organization. Here’s what’s often behind it:

1. Skill Gaps: Maybe they’ve been assigned tasks they’re not equipped to handle. Instead of asking for help, they disengage, hoping no one will notice.

2. Burnout: Long hours, impossible deadlines, and zero recognition? That’s a perfect recipe for burnout. Burned-out engineers might be physically present, but mentally? They’re already gone.

3. Role Mismatch: A backend engineer forced to work on frontend tasks? Or a coder stuck doing boring, repetitive work? That’s a one-way ticket to disengagement.

4. Unclear Communication: When managers don’t give clear priorities, skip feedback, or are too hands-off, it’s easy for engineers to feel lost and undervalued.

5. Personal Issues: Sometimes, it’s not even about work. Health problems, family issues, or personal struggles can spill over into their performance.

Economic Impact of Ghost Engineers

Let’s get real: ghost engineers cost far more than just their salaries. Here’s how:

1. Direct Costs
   They still draw full paychecks and use company resources like tools, software, and equipment without contributing value.
2. Opportunity Costs
   Missed deadlines delay projects, and slower product launches lead to lost revenue and missed opportunities.
3. Hidden Costs
   Rushed work by others to cover gaps results in bugs, poor documentation, and technical debt. Fixing these issues later adds significant rework costs.
4. Long-Term Risks
   Frustrated clients may leave, costing you business. High performers overburdened by picking up the slack often quit, leading to expensive turnover and lost expertise.
   

Quantifying the Cost of Ghost Engineers

The financial burden of ghost engineers can be staggering when broken down. Using real-world salary data, we can estimate the direct, indirect, and long-term costs associated with disengaged employees in an engineering team.

Direct Salary Costs

According to SalaryCube, the average software engineer in a mid-sized company earns $131,511 annually. For simplicity, let us round this figure to $130,000 to include benefits and other compensations. With 9.5% of engineers disengaged, the monthly salary waste per ghost engineer is approximately $10,830 ($130,000 ÷ 12).

For a team of 100 engineers:

• 9.5% of 100 = 9 to 10 ghost engineers
• Monthly salary wasted = $10,830 × 10 = $108,300
• Annual salary waste = $108,300 × 12 = $1.3 million

This calculation focuses solely on salary waste, leaving out the cascading costs of disengagement.

Opportunity Costs

Missed deadlines due to underperformance can have significant financial implications. If a software project is expected to generate $2 million in annual revenue but faces a two-month delay because of unproductive team members, the company loses an estimated $333,000 in revenue ($2 million ÷ 12 × 2). This does not even consider the competitive disadvantages caused by late releases in fast-paced markets.

Hidden Costs

Disengagement leads to additional burdens on high-performing team members, which often results in rushed or lower-quality work. This can create technical debt that requires future fixes. Suppose each affected project incurs an average of $12,500 per month in additional expenses to fix bugs, rework poorly written code, or address missing documentation.

For three key projects in a year:

• Monthly technical debt cost = $12,500
• Annual cost = $12,500 × 12 months × 3 projects = $450,000

Long-Term Risks

Frustrated high performers often leave when overburdened by the extra workload caused by ghost engineers. The cost of replacing these employees is substantial, with estimates suggesting that recruitment, onboarding, and training can cost 1.5 to 2 times an engineer's annual salary. Losing two senior engineers earning $150,000 annually could result in turnover costs of $450,000.

Total Cost Estimate

Combining these factors, the annual cost of ghost engineers for a 100-engineer team is significant:

• Direct salary waste: $1.3 million
• Lost revenue from delays: $333,000
• Technical debt costs: $450,000
• Turnover costs: $450,000

Total annual cost: $2.53 million

This conservative estimate underscores how disengaged engineers affect not just payroll but also project timelines, quality, and employee retention. When extrapolated to larger teams or organizations, the potential losses can scale exponentially, highlighting the urgent need to address the root causes of disengagement.

The Impact on Team Morale and Productivity

Ghost engineers don’t just drain resources; they drain energy and trust. Here’s how:

1. Extra Workload on Top Performers: A study from the OKR Institute found that underperformers create bottlenecks, slowing down workflows and putting undue stress on the top contributors. This leads to exhaustion and eventually disengagement from even the most dedicated team members
   Okr Institute
2. Resentment and Trust Issues: Research from OneEighty shows that team conflicts caused by perceived inequities in workload can damage trust and leave lasting scars on morale OneEighty
3. Diminished Creativity: When the team is constantly covering for ghost engineers, they lose the bandwidth to think creatively or innovate. The focus shifts to survival mode, just getting through the workday. A survey highlighted that 86% of employees and executives blame workplace failures on poor collaboration or bad communication, which only gets worse when trust is low. Without collaboration, creativity takes a backseat, and big ideas stop coming Aiir Consulting
4. Talent Walks Out the Door Your top performers won’t stick around in an environment where they are constantly cleaning up after others. When they leave, you’re not just losing their skills, you’re losing leadership, experience, and team morale. Bringing in new hires to replace them is expensive and time-consuming, often costing up to two times the annual salary of the departing employee.  Seriosity

Addressing the issue of ghost engineers is crucial not only for maintaining productivity but also for preserving team cohesion and morale.

How to Spot Ghost Engineers

Use a mix of data and conversations to get to the bottom of it:

1. Look at the Data

DevDynamics can help you spot:

• Uneven Workloads: Some engineers are drowning while others are barely contributing.
• Engagement Levels: Dips in commits, PR reviews, or meeting participation can signal disengagement.
• Task Completion Times: Are tickets dragging on too long?

Click here to know how DevDynamics can help you solve the Ghost engineer problem.

2. Have Conversations

Numbers only tell part of the story. Regular 1:1s can reveal:

• What’s blocking progress?
• How they feel about their workload.
• Whether they need support or a change in direction.

How to Prevent Ghost Engineers in the First Place

1. Build a Supportive Culture

Encourage open communication and regular feedback. Make people feel heard and valued.

2. Recognize Effort and Results

Acknowledging contributions big and small keeps people motivated.

3. Provide Growth Opportunities

Offer training, mentorship, and challenging projects to keep employees engaged.

4. Use the Right Tools

DevDynamics gives you visibility into team performance, so you can catch issues early.

Final Thoughts

Ghost engineers are a signal that something bigger is broken whether it’s burnout, bad management, or improper role alignment. The good news? You can fix it.

By understanding the causes, addressing the problems, and taking preventive steps, you can turn ghost engineers into engaged, productive team members. And let’s face it, fixing the team you have is always better (and cheaper) than starting over from scratch. Don’t wait until the cracks get bigger. Start addressing ghost engineers today.