Employees in the UK and US are costing business 18.7 billion a year because they do not fully understanding their jobs, according to a Cognisco survey.

Counting the Cost of Employee Misunderstanding - which Cognisco claims is the first report of its kind - defines misunderstanding as the misinterpretation of company policies, business processes and/or job function. This can be down to a lack of confidence, or through being misinformed.

Results show that just a third of organsations have taken steps to address the problem.

The report also found there are more hidden costs due to the knock-on effect on brand, reputation and customer satisfaction.

The banking industry suffers most due to the high risk associated with handling funds.

"This is the first time the cost of employee misunderstanding has been calculated," says Lisa Rowan, programme director HR and talent management services at market research firm IDC, who conducted the research on behalf of Cognisco. "Large enterprises are potentially losing millions each year to 'employee misunderstanding' yet very few organisations are taking action or are even aware a problem exists."

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