8) Outcome of Employee Engagement

 

Employee engagement is proven when people put out their best effort at work, are committed to achieving goals, and have high morale (Armstrong, 2010). When employees are actively involved in organizational operations, the organization reaps several benefits. Low employee engagement comes as a cost to the company. According to studies, low employee engagement costs the US economy $370 billion dollars each year (Parent & Lovelace, 2015). Employees that are engaged contribute to an organization's productivity. The importance of an employee's commitment in making them an engaged employee in the business cannot be overstated (Sarangi & Nayak, 2016).

Customer happiness, innovation, profitability, productivity, loyalty, and quality are all affected by employee involvement, either directly or indirectly (Siddhanta & Roy, 2010). According to Armstrong (2014) Employee engagement leads to increased attendance, employee retention, increased productivity, increased employee effort, high quality work, fewer errors, increased sales, higher profits, higher earnings per share, shareholder satisfaction, enhanced customer satisfaction, loyalty, rapid business growth, and high expectations for business success.

Figure 1: Individual Factors of Employee Engagement and Work Outcomes

Source : (Andrew & Sofian, 2012)

Individual determinants of employee engagement and work results are depicted in Figure 1 Individual variables demonstrate that essential elements such as employee communication, employee growth, and co-worker support improve employee productivity. Also, the two forms of engagement shown in Figure 1 are job engagement and organizational engagement. Figure 1 also shows work outcomes such as job satisfaction, loyalty to the organization, desire to leave, and organizational citizenship activity. As per Armstrong (2014) employees who are engaged perform better, are more inventive, are more likely to want to stay with their employers, have higher levels of personal well-being, and consider their workload to be more sustainable than those who are not.

Improving employee engagement and increasing organizational productivity are two distinct things. Organizations with a greater degree of employee involvement, on the other hand, will see a 22 percent increase in production (Baldoni, 2013). Employee involvement is critical to a company's success. High profitability and productivity, better quality, customer loyalty, financial success, employee performance, dedication and motivation, employee retention, organizational culture, and management self-efficiency are some of the results of employee engagement (Patro, 2013).  Robertson-Smith and Markwick, Robert (2009) Mindfulness, intrinsic motivation, creativity, authenticity, non-defensive communication, fun, ethical conduct, greater effort and participation, and overall, a more productive and happier employee are all possible outcomes of employee engagement and investment in one's job. Employee engagement is a big deal for businesses. Because of the high value of essential business results, the company's investment in employee engagement is increasing (Markos & Sandhya , 2010). According to (Baldoni, 2013), top-quartile companies had reduced absenteeism and turnover. High-turnover companies have a 25% lower turnover rate, whereas low-turnover companies have a 65 percent lower turnover rate.

Employees who are engaged perform better, are more inventive, are more likely to want to stay with their employers, have higher levels of personal well-being, and consider their workload to be more sustainable than those who are disengaged. Employees who are engaged are more active in their jobs, are healthier, and perform better than those who are disengaged (Armstrong, 2014). When comparing engaged versus disengaged employees, it's clear that engaged employees have more favorable aspects. As per Sun & Bunchapattanasakda (2019) employees that are engaged are pleased with their jobs, devoted to the business, and rarely quit. Employee engagement, according to Patro (2013), predicts employee outcomes, organizational success, and financial performance. The influence of employee engagement or disengagement may be seen in productivity and organizational performance, as well as organizational results for customers, employee retention rates, and corporate culture. Employee engagement outcomes may be divided into two categories: organizational performance and individual performance. Organizational outcomes/performance are defined as the financial success of the company, customer happiness, the service climate of the organization, and return to shareholders. Individual performance is defined as employee profit, employee turnover, more overtime, employee performance, higher job satisfaction, higher organizational commitment, less willingness to leave, positive behavior, organizational citizenship behavior, more active in the workplace, better health, better performance, and employee out of role performance (Sun & Bunchapattanasakda, 2019).

As per above statements employee engagement results in two ways, such as organizational outcomes or individual performance. It demonstrates that businesses with a high level of employee engagement are more successful. 

Reference 

Andrew, O. & Sofian, S., 2012. Individual Factors and Work Outcomes of Employee Engagement. The 2012 International Conference on Asia Pacific Business Innovation & Technology Management, Pattaya, Thailand , p. 501.

Armstrong, M., 2010. Employee Engagement. In: ARMSTRONG'S ESSENTIAL HUMAN RESOURCE MANAGEMENT ORACTICE. London: Kogan Page Limited, p. 165.

ARMSTRONG, M. & TAYLOR, S., 2014. In: ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE. lONDON: Kogan Page Limited, p. 197.

ARMSTRONG, M. & TAYLOR, S., 2014. Employee engagement. In: ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE. London: Kogan Page Limited, p. 197.

ARMSTRONG, M. & TAYLOR, S., 2014. Employee Engagement. In: ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE. London: Kogan Page Limited, p. 197.

Baldoni, J., 2013. Employee Engagement Does More than Boost Productivity. [Online]

Available at: https://hbr.org/2013/07/employee-engagement-does-more#:~:text=Improving%20employee%20engagement%20is%20not,conducted%20by%20the%20Gallup%20Organization.[Accessed 14 08 2021].

Baldoni, J., 2013. Employee Engagement Does More than Boost Productivity. [Online]

Available at: https://hbr.org/2013/07/employee-engagement-does-more [Accessed 14 08 2021].

Markos , S. & Sandhya , S., 2010. Employee Engagement: The Key to Improving Performance. International Journal of Business and Management, Volume 5(Issue 12), p. 92.

Parent, J. & Lovelace, K., 2015. The Impact of Employee Engagement and a Positive Organizational Culture on an Individual’s Ability to Adapt to Organization Change. p. 7.

Patro, C., 2013. Organisational Outcomes Of Employee Engagement. In: The Impact of Employee Engagement on Organization’s Productivity. s.l.:s.n., p. 6.

Patro, C., 2013. Organisational Outcomes Of Employee Engagement:. In: The Impact of Employee Engagement on Organization's Productivity. Visakhapatnam: s.n., p. 6.

Robertson-Smith, G. & Markwick, C., 2009. Employee Engagement A review of current thinking , Brighton: INSTITUTE FOR EMPLOYMENT STUDIES.

Sarangi, P. & Nayak, B., 2016. Employee Engagement and Its Impact on Organizational Success – A Study in Manufacturing Company, India. IOSR Journal of Business and Management (IOSR-JBM) , Volume 18(Issue 4), p. 52.

Siddhanta, A. & Roy, D., 2010. Employee engagement ­ Engaging the 21st century workforce. ASIAN JOURNAL OF MANAGEMENT RESEARCH, p. 170.

Sun, L. & Bunchapattanasakda , C., 2019. Employee Engagement: A Literature Review. International Journal of Human Resource Studies, Volume 9(Issue 1), p. 73.

Sun, L. & Bunchapattanasakda, C., 2019. Employee Engagement: A Literature Review. International Journal of Human Resource Studies, Volume 9(Issue 1), p. 74.