Employee Engagement and Organizational Performance

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Greater levels of engagement in organizations promote retain of talent, foster client trustworthiness and upsurge organizational performance. When employees are efficiently and positively engaged with their organization or firm, they build up an emotional connection with the company. This influences their behavior towards the company’s customers, thus increases customer satisfaction and service levels (Bhavani et al., 2015).
Studies have found positive relationship between employee engagement and organizational performance results in employee retention, efficiency, profitability, customer loyalty and safety. Researches also indicate that with engaged employees, the employer is able to surpass the industry average in its revenue growth. (Solomon and Sandhya, 2010).

Aon Hewitt describes engagement as the psychological state and behavioral outcomes that lead to better performance. The engagement outcomes are as Say, Stay, and Strive.
Engaged employees:
 • Say—speak positively about the organization to coworkers, potential employees, and customers.
 • Stay—have an intense sense of belonging and desire to be a part of the organization.
• Strive—are motivated and exert effort toward success in their jobs and for the company.

Figure 1 – The Aon Hewitt Engagement Model



(Source: Aon, 2015)



Employees who are not engaged do not show full commitment and uncertainties about their organization in terms of performance measures and job satisfaction. (Solomon and Sandhya, 2010).

List of references

Aon, H. (2015) Global Trends in Employee Engagement: Making engagement happen. Aon empower results.
Bhavani, S. A., Sharavan and  Arpitha (2015) A Study Effectiveness of Employee Engagement in Automobile Industry. International Journal of Economics & Management Sciences, 4(10), pp.1-5.

Solomon, M and Sandhya, S. M. (2010). Employee Engagement: The Key to Improving Performance. International Journal of Business and Management, 5(12), p.3.

Comments

  1. NilminiNovember 10, 2019 at 9:59 PM

    Well said Nipuni. Further to what you mentioned, there have been so many explanations given on impact of employee engagement and characteristics of engaged workforce.


    An engaged employee is someone who can be relied upon and goes beyond the requirements of the job, who is aware of the business context, who sees the bigger picture, even sometimes at personal cost, who looks for opportunities to improve organizational performance, works closely with colleagues to improve performance within the job for the benefit of the organization. Hence it is evident that organizational commitment and engagement are two main important concepts that affect work performance and the attraction and retention of employees (Armstrong, 2008). Engaged employees lead to enhance the overall company innovativeness and to boost the bottom line as they more attentive, integrated, focused in their work performance and are more likely to take personal initiative at work (Zheng, 2013). Employee engagement forecasts employee outcomes, enhance financial performance and lead to organizational success (Saks, 2006). Internal communication has been identified as one of the main contributors for internal communication. Frequent communication between employees and managers enhance the bond of trust. This transparency leads Employees feel a sense of belonging when the mission is shared, what is expected from them and should feel that how valuable their contribution towards achieving company’s goals (Mishra, 2014).

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    Replies
    1. Nipuni WickramanayakeNovember 15, 2019 at 4:58 AM

      Thank you very much Nilimini for your valuable comment. Adding more to your comment, employees vary significantly in terms of their commitment to their job and the amount of power and attention that they put forth at work. Work engagement is a concept that captures the variation across individuals and the amount of energy and dedication they contribute to the job (Kahn,1990).
      Organizations are more operative and efficient if the employees are eager to go an extra mile and the responsibility of the managers are to motivate the employees (Bolino, 2017). When the organization upholds a balance between work and life of the employees, then the employees become more relaxed and more engaged (Markos & Sandhya, 2010).

      Delete
  2. Chathurika GunarathnaNovember 13, 2019 at 2:33 AM

    Nipuni, engaged employees are an asset to an organization. Your blog clearly explains the reasons for importance of employee engagement. In todays context organizations should take steps to engage employees to the work and to the organization as it provides competitive advantage to any business. According to Hui et al. (2007), research done among 17 multinational companies in China found out that engaged employees are not only productive but also have less turnover. Howard and Foster (2009) state that employee engagement is a critical factor that affect competitiveness and attrition rate. Moreover, engaged employees have more smoother relationship with management (Van den Broeck et al.,2008).

    ReplyDelete
    Replies
    1. Nipuni WickramanayakeNovember 15, 2019 at 4:59 AM

      Thank you Chathurika for your valuable comment. It is also stated at the organizational level, research on employee engagement has reliably found a strong, positive relationship with organizational performance. In a study of 65 companies found shareholder value for companies in the top 25% of a proprietary employee engagement index was more than double that for companies in the bottom 25% (Macey et al., 2009), whereas another study of 125 organizations found statistically significant connections between employee engagement and a range of results including profitability, productivity, and safety incidents (Harter, Schmidt, Killham, & Asplund, 2006). Employee engagement studies are extremely reliable with management as they are conducted in the ‘real’ world of work.

      Delete

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