Bakker and Leiter (2010) state that
actively engage workforce gives positive organizational outcomes on following
areas,
4.1. Employee productivity
High level of engagement helps
employee to improve his/her innovative thinking. According to the Lockwood
(1997) high level of engagement helps employees in taking initiative and pursuing
learning goals. Engaged employees develop new ways and means to improve the
organization’s performance levels and go extra mile. Main reason for this
behavior is engaged employees are motivated with their job and are more
committed to the organization (Schaufeli and Salanova, 2007). They always go
beyond the job description and very enthusiastic at work. Highly engage
employees are hunger for achieving challenging goals, and the
urge to succeed therefore such employees are ready to change and arrange their
job according to the changing work environment (Bakker and Leiter, 2010).
Figure 1.0: Employee engagement and employee productivity
(Source: Insync Surveys, 2012)
4.2. Employee Retention
Employee engagement leads high
employee retention within the organization mainly due to two reasons those are
high level of motivation and Low level of working stress. Perrin (2003) has
found that around 66% of highly engaged employees had no plans to leave their
job.
Figure 2.0:
Employee Engagement and employee retention
(Source: Insync Surveys, 2012)
4.3. Customer loyalty
The study by Salanova et al. (2005)
has identified positive influence of employee engagement over service climate.
As per Saks (2006) Engaged Employee is having positive feelings toward his
work, find their work to be personally meaningful and manageable, and he has
the confidence about the future of his work (Saks, 2006) this attitude
influences the quality of their work and the satisfaction and loyalty of their
customers.
Figure 3.0:
Employee Engagement and Customer Loyalty
(Source: Insync Surveys, 2012)
4.4. Organizational performance
Studies have observed correlation
between employee engagement and organizational performance outcomes. Highly
engaged employees are always cause to increase the revenue and profitability of
the company. Gallup research found that higher employee engagement
results higher earnings per share of publicly-traded businesses. (Gallup, 2004
cited in Ott, 2007)
Report of Hewitt Associates (2004)
discussed about three general behaviors of engaged employee which improve
organizational performance regularly.
· Say
- the employee advocates for the organization to co-workers, and refers
potential employees and customers
· Stay
- the employee has an intense desire to be a member of the organization despite
opportunities to work elsewhere
· Strive
- the employee exerts extra time, effort and initiative to contribute to the
success of the business
Figure 4.0: Employee Engagement
and Organizational Performance
(Source: Insync Surveys, 2012)
List of References
List of References
Bakker, A.B. and Leiter M.P. (2010) Work
Engagement: A Handbook of
Essential Theory and Research.
New York: Psychology Press.
Hewitt Associates. (2004).
Employee Engagement Higher at Double Digit
Growth Companies, Research Brief,
Hewitt Associates LLC.
Insync Surveys(2012),White paper: The
impact of employee engagement
on performance
http://www.insyncsurveys.com.au/media/92145/impact_of_employee_engagement_on_performance last access on 03/10/2018
Lockwood, N.R. (2007) Leveraging
Employee Engagement for
Competitive Advantage: HR's Strategic Role. HR
Magazine, 52(3), PP.1-
11.
Ott, B. (2007)“Investors Take
Note: Engagement Boosts Earnings.” The
Gallup Management Journal, (June
2007).
Towers Perrin (2003), Working Today: Understanding What Drives
Employee
Engagement, Towers Perrin HR Services.
Saks, A.M. (2006) ‘Antecedents and
consequences of employee
engagement’, Journal of Managerial Psychology, 21
(6), pp.600-619.
Salanova, M., Agut, S. and Peiro, J.M.
(2005) “Linking Organizational Resources and Work Engagement to Employee
Performance and Customer
Loyalty: The Mediation of Service
Climate.” Journal of Applied Psychology, 90 (6), pp.1217– 1227.
Schaufeli, W.B. & Salanova, M.
(2007). Work Engagement: an emerging psychological concept and its
implications for organizations . In. S.W. Gilliland, D.D. Steiner
& D. P. Skarlicki (Eds.), Managing Social and ethical Issues in
Organizations. Volume 5: Research in Social Issues in Management.
Employee engagement is one of the common approaches that is been spoken of with regard to organizations productivity and performance. In any organization's productivity and performance are determine by the level of employee engagement towards its organization's objectives. Kompaso and Sridevi,(2010).
ReplyDeletethe blog critically discusses the facts with detail statistics that are truly relevant to the topic in a comprehensive state.
You are Correct chaminda, Gallup research (2004) found that higher employee engagement results higher earnings per share of publicly-traded businesses. Further Schaufeli and Salanova (2007) discuss engaged employees are motivated with their job and are more committed to the organization. therefore it is clear that engaged employees help to improve organization's productivity and performance
DeleteEmployee is a valuable asset to the organization, I accept that idea which taken from your blog. Yes the employees should engage in a positive manner for the betterment of the organization. I agree with you, Yes an engaged employee will always deliver more than the job description. The organizational environment needs to be prepared for a better employee engagement. According to Robinson (2006) the organizational environment needs to be created with positive emotions such as involvement, pride and encouragement. These factors need to be there to experience a better employee engagement.
ReplyDeleteYes Vayanga, organizational environment is very important for employee engagement as per Kahn (1990) supportive environments allow members to experiment and to try out new things and even fail without fear of the consequences. Further Popli & Rizvi (2016) and Anitha (2014) confirm that meaningful workplace environment is considered a key determinant of employee engagement.
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DeleteHi Suresh , Your blog show why important employee engagement to the organization . So Employee engagement goes beyond activities, games, and events. Employee engagement drives performance. Engaged employees look at the whole of the company and understand their purpose, where, and how they fit in. This leads to better decision-making. Organizations with an engaged workforce outperform their competition. They have a higher earning per share (EPS) and recover more quickly after recessions and financial setbacks. Engagement is a key differentiator when it comes to growth and innovation.Moreover, expectations of employees have changed. Mobile professional careers are much more common than “job for lifers”. Retention of top talent is more difficult than before. A company that has an effective employee engagement strategy and a highly engaged workforce is more likely to retain top performers as well as attract new talent. Successful organizations are value-driven with employee-centric cultures (Leodford , 1993)
ReplyDeleteHi Ajantha I agree with your comment and same views that you have shared such as employee innovation, retention and attraction were assured by some scholars as well. As per Catteeuw et al (2007) Engaged employees will stay with the company longer and continually find smarter, more effective ways to add value to the organization and as per Kenexa (2008) engaged employees are refer others to the organization for employment through that organisation will receive good attraction. Further Lockwood (1997) says High level of engagement helps employee innovative thinking and high level of engagement helps employees in taking initiative and pursuing learning goals.
DeleteHi Suresh , People who are highly engaged at work not only provide greater value to the organization but they experience a better quality of life at work. Culture Amp People Scientist Fresia Jackson explains what an engaged employee looks like. People who are engaged feel energized by their work and actually maintain positive mental health. They do more good deeds at work, like helping a new hire get acclimated (without being asked). People also work in a state of flow when they feel engaged; time passes and they’re absorbed in their work. As Jackson says, “These behaviors bring to life employee engagement survey results because they’re what we see day to day.”
ReplyDeleteHi Suresh , Well descriptive Blog on Employee Engagement . Negative side of engagement is the burnout or disengagement . Burnout is described as a syndrome of emotional exhaustion and cynicism (Maslach and Jackson 1981 cited on Armstrong and Taylor , 2014) . Burnout is caused as a result of high workloads ,high pressure on the employee to perform to achieve unrealistic targets of the organization .
ReplyDeleteYes Kasun Engagement is not about driving employees to work harder but about providing the conditions in which they will work more effectively – it is about releasing employees’ discretionary behavior. (CIPD, 2012).
DeleteGood job done Suresh. Your blog well explains importance of employee engagement. Thayer (2008, p. 74) who agrees that the concept of employee engagement is rapidly gaining popularity, use, and importance in the workplace and that by identifying the factors that can increase employee engagement, employers can make strategic adjustments within their organizations to create a positive psychological climate for employees.
ReplyDeleteYes Gayani, current business environment is changing rapidly therefore only competitive advantage can be retained is only engaged work force. because they are the people Who can bring the organization forward. as per Bakker and Leiter (2010) Highly engage employees are hunger for achieving challenging goals, and the urge to succeed therefore such employees are ready to change and arrange their job according to the changing work environment.
DeleteHi Suresh, I am 100% agree with the statement "engaged employees can bring organization forward and ensure achieving its vision" because Employees are critical assets for an organization and when employees are disengaged they do not fully contribute to the organizational success.This historical perspective of employee engagement is an attempt to put a foundation under a concept that has potential to improve the lives of individuals in organizations.
ReplyDeleteToo many people go to work every day actively disengaged from their work (Harter et al., 2002). For human resources in organizations to contribute productively and even passionately to the success of their organizations is an outcome that every HRD practitioner and scholar has concern for(Shuck and Wollard,2010).
Hi Maheshika, according to Marrelli, (2011), this how engaged employees bring organization forward, Do their best every day, Put organizational interests ahead of their own, They are innovative, offering new ideas and suggestions, Are eager to contribute to the organization, Try hard to make the work environment pleasant and respectful.
DeleteFrom Udeni
ReplyDeleteHi Suresh, it is clear that you have communicated the theory on Employee Engagement and it is very interesting to read. As I commented in Shantha’s Blog same application should be amended as follows in your blog.
According to Armstrong (2010, p155) as cited by Murlis and Watson (2001) defined ‘engaged performance’ as ‘A result that is achieved by stimulating employees’ enthusiasm for their work and directing it towards organizational success.
I am commenting on this extract from in such a way, that employee engagement for organizational success should be well define. So you may have to comment on which type of methods we can use.
''KAIZEN projects which is well known as small improvement activities will be the most effective ways for organizational success and Improvements. It was the story behind the Japan success and how they achieve their targets in a small lead time. So your blog will be more enriched with this argument. Also cross functional teams and small overlap team method also a very best way of employee engagement.
in any organisation key to success is attracting customers and retain them. therefore as you requested best method is improve the customer loyalty through employee engagement. As per Saks (2006) Engaged Employee is having positive feelings toward his work, find their work to be personally meaningful and manageable, and he has the confidence about the future of his work, this attitude influences the quality of their work and the satisfaction and loyalty of their customers.
DeleteOrganizations have come to realize that in today’s constantly changing business scenario, the most valuable resource that needs to be leveraged is human resource.
ReplyDeleteThis means not just attracting the best and retaining them but keeping them motivated and committed to achieving the organization goals.
An engaged workforce produces better business results, does not hop jobs and more importantly is an ambassador of the organization at all points of time. This engagement is achieved when people consider their organization respects their work, their work contributes to the organization goals and more importantly their personal aspirations of growth, rewards and pay are met.Understanding employee engagement drivers, measuring and enhancing engagement offers promise of better business performance by ambassadors of the organization who work like entrepreneurs and help sustain organization growth through innovation and lower employee turnover(Management Study Guide Content Team).
Hi Ruwanga,
DeleteI agree with your comment, Further, Hewitt Associates (2004) discussed about three general behaviors of engaged employee.
Say - the employee advocates for the organization to co-workers, and refers potential employees and customers
Stay - the employee has an intense desire to be a member of the organization despite opportunities to work elsewhere
Strive - the employee exerts extra time, effort and initiative to contribute to the success of the business
Hi. Suresh, you have well delineate a popular subject area in your blog. Moreover I will append this too. It is a distinctive salient feature that management influence on employees for positive engagement. As Ott et al. (2007) illustrates reputation and ability to select the right people at right time brings right people into the organization with the potential to be highly engaged in their work. Therefore positive relationship between a manager and employee is a crucial driver of engagement and satisfaction with the organization.
ReplyDeleteYes samanthi, positive relationship between a manager and employee is a crucial driver of engagement. As per Abraham (2012) fair treatment invokes trust from employees and is a key element in Employee Engagement. As per Welch and Jackson (2007) internal communication, which is between superiors and subordinates, helps to improve employee loyalty.
DeleteWonderful blog
ReplyDeleteEngaged employees care for the company, they’re not simply working for salary and promotions but they also work effectively and efficiently for the growth of the company. Online employee engagement activities have become the most popular topic for leaders and HR professionals, because of the pandemic conditions. Filled with unique fun virtual entertaining games that help employees connect with others
Informative Article! Virtual Employee Engagement Activities are one of the great ways to improve the relationship between an company and its remote employees.
ReplyDelete