2) Benefits of Employee Engagement
Active personality is a factor that captures individual differences in behavioral tendencies, show positive behavior to formulate positive situational changes. Draw from Job demand-resource framework and trait activation theory shows the benefits of employee engagement (Wang, et al 2017). Employee engagement refers to the involvement and satisfaction of individuals in an organization as well as their enthusiasm for their job (Harter, et al 2017). Ex: The CEO of Starbucks, said employees are the true ambassadors of Starbuck brand, the real merchants of romance and theater (Howard, 2012).
The high degree of engagement among employees brings many benefits. According to (Lockwood, 2007) employee engagement can promote talent retention, ensure outstanding performance, cultivate customer loyalty and improve organizational performance and stakeholder value.
Six Amazing Benefits of Employee Engagement
Figure 1: Benefit of employee management
Source: (Kate, 2009)
01. Higher Employee Satisfaction
Employee satisfaction is critical to the success of any business. High employee satisfaction rate is directly related to the decrease in turnover rate. Therefore, maintaining employee satisfaction with their profession should be each employer ’s top priority (Gregory, 2011). Ex: AIA Insurance company has a strong leadership team and dedicated employees are dedicated to the company’s success, and in recent years have helped drive rapid business growth (aialife.com, 2020) .
02. Higher Retention and Lower Turnover
Employee turnover and increase retention higher Productivity: Engaged, motivated workers have higher employee satisfaction, which leads to enthusiasm in employee job role and overall company growth in the form of higher retention and lower turnover; higher productivity (Sundaray, 2011). Ex, according to AIA Insurance Company people are determined, brave and strong learn quickly and respond to opportunities; and continue to promote and have results (AIA.com, 2021).
03. High Profitability
Through suggestions, based on key factors to increase employee engagement and productivity. The organization successfully attracted customers and employees profitability (Heymann, 2015).
04. Less Absenteeism
When employees are absent, work doesn't get done. The availability of care for sick children reduces work/family conflict which, in turn, results in less absenteeism engaged employees take less sick days—not only because employees want to be at work ( Goff, at al, 1990).
05. Increased Employee Loyalty
Maintaining the loyalty of survivors in a scaled down environment is a challenge management practitioner. Theorists suggest empowerment and rich work is the mechanism (Brian et al, 2001). Ex: AIA Insurance company says AIA business development continues to line up with emerging growth areas through employee expertise (AIA.com, 2021).
Figure: 1.1 The Benefits of Employee Engagement:
Employee satisfaction participation and business sector results for increased customer satisfaction, productivity, profitability, employee turnover, (Harter, 2002).
Source: (Harter, 2002)
Video: 1.1 Benefits of Employee Engagement
Why is employee engagement important? The answer is simple. The company's bottom line depends on employee satisfaction and happiness. Increased satisfaction and happiness can always lead to better retention.
List of References
Barik, S. and Kochar, A., 2017. Antecedents and consequences of employee engagement: A literature review. International Journal of Latest Technology in Engineering, Management & Applied Science.
Goff, S.J., Mount, M.K. and Jamison, R.L., 1990. Employer supported child care, work/family conflict, and absenteeism: A field study. Personnel psychology, 43(4), pp.793-809.
Gregory, K., 2011. The importance of employee satisfaction. The Journal of the Division of Business & Information Management, 5, pp.29-37.
Harter, J.K., Schmidt, F.L. and Hayes, T.L., 2002. Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: a meta-analysis. Journal of applied psychology, 87(2), p.268.
Heymann, M., 2015. Spotlight on service: Integrating workforce management with employee engagement to optimize customer satisfaction and profitability. Global Business and Organizational Excellence, 34(5), pp.6-12.
Lockwood, N.R., 2007. Leveraging employee engagement for competitive advantage. Society for Human Resource Management Research Quarterly, 1(1), pp.1-12.
Niehoff, B.P., Moorman, R.H., Blakely, G. and Fuller, J., 2001. The influence of empowerment and job enrichment on employee loyalty in a downsizing environment. Group & Organization Management, 26(1), pp.93-113.
Perryer, C., Jordan, C., Firns, I. and Travaglione, A., 2010. Predicting turnover intentions. Management Research Review.
Schultz, H., 2012. Pour your heart into it: How Starbucks built a company one cup at a time. Hachette UK.
Sundaray, B.K., 2011. Employee engagement: a driver of organizational effectiveness. European Journal of Business and Management, 3(8), pp.53-59.
Wang, Z., Zhang, J., Thomas, C.L., Yu, J. and Spitzmueller, C., 2017. Explaining benefits of employee proactive personality: The role of engagement, team proactivity composition and perceived organizational support. Journal of Vocational Behavior, 101, pp.90-103.
Totally agreed. Employee engagement shows positive impact to the positive employee feeling about the organization and its values with positive attitudes (Robinson et al, 2004). On the other hand, the employee engagement positively affected not only job satisfaction with less turnover but also organizational performance (Sake in 2006 and Balain & Sparrow in 2009). According to Robins in 2017 benefits of employee engagement to the employer areas follows;
ReplyDelete- Higher Employee Satisfaction
- Higher Retention and Lower Turnover
- Higher Productivity
- Increased Profitability
- Less Absenteeism
- Increased Employee Loyalty
Yes, Agreed Thushari, This reason has led management to create an competitive edge over other companies as Janine (2019) states that the motivation being a driving factor which enables a behavioral change towards attaining individual goals, can be used as the carrot in front of rabbits excluding the stick, as it produces and improves better performance removing the fact of fear.
DeleteI agreed Nimna, but according to Macey et al (2009: 7) who defined engagement as ‘an individual’s purpose and focused energy, evident to others in the display of personal initiative, adaptability, effort and persistence directed towards organizational goals’.
ReplyDeleteAccording to Penna, (2007) meaning at work has the potential to be valuable way of bringing employers and employees closer together for the benefit of both where employees experience a sense of community, the space to be themselves and the opportunity to make a contribution, they find meaning. Employees want to work in the organizations in which they find meaning at work.
ReplyDeleteI agree with your view, Robbins (2004),defines employee motivation as the willingness to expend high levels of effort toward organizational objectives, influenced by the effort's ability to fulfill individual needs.
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ReplyDeleteAgreed with your points Chathuranga. As per the Dutta(2021) explained, some employees are intrinsically motivated, their engagement level higher than others. They are enjoying the work and they are not only work for payback. They have emotional connection with workplace.
ReplyDeleteWell said Menaka. Further strengthening your view Shiffman & Kanuk (2006) also remarks that the execution of behavioral change which is by motivation is highly raised because of the sense of excitement in order to achieve their respective unfulfilled need. So it is believed that the correct customized motivation strategy set by the management, could increase the willingness of employees to intensify their performance with guidance, power & endurance (Munchinsky, 2003).
DeleteAgreed with your point of view. Successful organizations always maintain an engaged workforce. Engaged workforce improves productivity, innovations, Maximus customer satisfaction, welcome rapid changers. Engaged works more collaborate with the organization enhancing organization prospective and goals (Turner, 2020).
ReplyDeleteAgreed with the above discussion and also Kawara (2014) declared that motivational rewards provide a feeling of motivation among employees, and thus, increase their productivity levels, which provide further implications for organizational growth and competitiveness. The practical implications from this finding suggests that the decision makers in higher learning institutions should give a prime attention to employees’ issues and ensure their work effectiveness by providing incentives and rewards for good achievements. This as a result will encourage them to become more productive and creative in doing their jobs.
DeleteAgreed with you.When defining a platform for creating a highly engaged workforce, Kompaso and Sridevi (2010) outline ten areas of focus. The following is a list of them:
ReplyDeleteWell streamlined recruiting and on-boarding process
Top down commitment from top leadership to the ground level workforce
Effective communication
Allowing right level of freedom to work
Facilitation of required resources to get the job done
Incentives
Cooperate culture that promotes engagement
Fair reconditions
Effective feedback loop
Training and development
Thank you Menupa, Further Jalal & Muhammad (2018) states that focusing and redesigning the reward system in a continuous basis, while evaluating and updating the employees combinations of strength and needs which changes time to time, with the effect of extrinsic forces is considered to be one of the best key business strategies.
Deleteyes. Explanations about the effect of storytelling intervention to increase employee engagement might be applicable as well in many cultures. However, there should be several considerations before using this intervention in different culture, especially in Western cultures. According to Hall (1976), people in western cultures, have preference on focusing in one task in one time, formal meaning of space, and exact meaning of communication.
ReplyDeleteAgreed, According to Armstrong, (2014) motivation is the strength and direction of behavior and the factors that influence people to behave in certain ways. People are motivated when they expect that a course of action is likely to lead to the attainment of a goal and a valued reward – one that satisfies their needs and wants.
DeleteSolomon M. and Sandhya S. (2010) has found positive relationship between employee engagement and organizational performance outcomes: employee retention, productivity, profitability, customer loyalty and safety.
ReplyDeleteWell said Sumeera, Vrooms expectancy theory is a cognitive theory, which arouse on that definition of motivation. The theory discusses the relationship between employee effort, performance and rewards with the formulation to practical scenario, in order to support managers with the estimated chances and probabilities, with relative to changing situations (Richard et al, 2004).
DeleteI agree with your point of view. This is evidenced by Mohamad S. Hammoud (2017) in his study. It says participants indicated that for most employees, pay is the positive outcome of working. However, he explains that feelings of stability and insurance are also considered important as pay.
ReplyDeleteI agree with Shanil. Human resource in itself is a combination of psycho physiological and intellectual capabilities that enable to produce substantial wealth or service. That is why, it is so important to motivate continuously the workforce in the working process, because its effectiveness depends on the effect of the organization's activities (Badri et al, 2017).
DeleteAgreed. Critically important in this regard is a culture that values employees, leadership commitment to the organization’s people-development goals and support systems that enable people to excel in their jobs (Lowe 2010).
ReplyDeleteWell said Khalid. Many Authors have stressed that the motivation should continuously in frequent manner. Human psychology is Influenced and driven towards specific direction due to the impact of a motivating factor which can fade away, if the process does not continue. Dina (2019) hereby highlights that this is why management should be very concerned in setting motivation strategies, by taking into consideration of the possible outcome to the reward given as they expect the influenced behavior to repeat, in order to improve behavior. Dina, further suggests that intrinsic motivators can be effective to be approached continuously while enabling extrinsic motivators in regular intervals.
DeleteOrganizations with highly engaged employees have better profits, customer satisfaction, and high employee productivity (Ahmetoglu, Harding, Akhtar, & Chamorro-Premuzic, 2015; Carter, 2015; CooperThomas et al., 2014; Vandenabeele, 2014). Further, employee individual performance is high when they are engaged. This can add a positive impact on the entire organizational performance as well (Osborne and Hammoud, 2017). To enhance employee productivity, SriLankan Airlines has conducted frequent staff engagement sessions with Cabin Crew and In-flight office staff, interacting with management. Weekly meetings, once a month “Cabin Crew Open Day” programs are such programs (SriLankan Airlines Annual Report, 2019/20).
ReplyDeleteAs you correctly said Lasanthi, The concept of engagement was defined by Gallup (2009) that the individual’s involvement and satisfaction with, as well as enthusiasm for, work. Also in addition to what you have mentioned Kobiga, we also need to make the distinction between extrinsic and intrinsic motivation as well. Extrinsic motivation includes things like bonuses, perks, rewards and other things that attempt to incentive your employees through material benefits. Intrinsic motivation, on the other hand, consists of internal qualities that a person is born with and that typically don’t diminish over time.
DeleteAgreed, according to Robinson (2006), creation of an organizational environment where positive emotions such as involvement and pride are encouraged, which enables the employee engagement, resulting in developed organizational performance, declined employee turnover and better health.
ReplyDeleteYes, agreed on your view Hemachandra Krishnachandraah. Self-determination theory which analyses about the Intrinsic & Extrinsic motivation explains that intrinsic motivations are drove with self-interest arising inherently, while extrinsic motivation is influenced with external factors such as financial need, social and cultural norms & peer influences (Richard & Edward, 2000). Also as understanding motivation in the workforce is a crucial step toward creating a dynamic work environment that enriches and fulfills workers, it is highly recommendable to execute motivations strategies comprising of both Intrinsic & Extrinsic motivators to improve both quality and quantity in overall organizational performances (Rajesh, 2016).
DeleteAgreed with you. Overall high levels of employee engagement play a central role in delivering some of the important outcomes that are associated with successful, high performing organizations ( Markos & Sridevi 2010).
ReplyDeleteAgree Amali, A successful organization is driven by a dedicated group of employees, and commitment is the output of motivation and job satisfaction. Motivation is the drive that compels employees to achieve organizational aim (Peters et al, 2010).
DeleteI agreed with your point of view. Employee engagement gives positive impact to company long run. Further, “Personal engagement is the simultaneous employment and expression of a
ReplyDeleteperson’s ‘preferred self’ in task behaviors that promote connections to work ( (Reio,
2009).
Agreed, to add further Ovidiu (2013) explains that a successful organization is driven by synergy of super skills which is needed to distinguish an organization, from its competitors. Therefore the author explains that employees being a mixture of various strengths & needs, could bring out their best talents out while enabling a positive emotional binding towards the job with an application of suitable motivational strategy in order to collectively achieve the organizational goal.
DeleteIn addition to your views Lakshan, when employees are engaged they are not committed but passionate in terms of excited, enthusiastic and productive about what they do (Kroth and Boverie, 2013). In the other hand these employees are focused, profitable, less like to leave the organization and have fun when it needs as they engaged (Gallup Organization, 1999).
ReplyDeleteWonderful blog! Employee engagement is one of the most important factors in measuring work satisfaction. Employees today want to be involved in their work, passionate about the organization they work for, have a sense of belonging. An Employee engagement company help organizations to engage their employees in various fun exciting activities and games to boost their team bonding.
ReplyDeleteEmpower your employees and drive business growth with our customizable engagement strategies. Trust our expert team to create a workplace culture that inspires and motivates your employees to do their best work. For more details about our best Employee Engagement Company in India, visit our website!
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