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.
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
1. 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) .
2. 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 Ceylon Tobacco Company people are determined, brave and strong learn quickly and respond to opportunities; and continue to promote and have results (ceylontobaccocompany.com, 2020).
3. Increased Profitability: Through suggestions, based on key factors to increase employee engagement and productivity. the organisation successfully attracted customers and employees profitability (Heymann, 2015).
4. 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).
5. 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: LOLC Finance says LOLC business development continues to line up with emerging growth areas through employee expertise (lolcfinance.com, 2020).
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.
Source: (The Benefits of Employee Engagement, 2019)
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.
As you correctly stated Nadee Weerasuriya, Employee Engagement plays a huge role in any Organization. According to many researches, it’s been evident that the engaged employees are much more innovative and also there’s a significant connection between innovative work behavior and employee engagement. Moreover, mentioned that employees who are engaged come up with innovative solutions for the problems that they identify in the workplace (Spiegelaere et al.,2014). Also Engaged employees are more loyal and contributes more to the organization and these employees will not voluntarily leave the organization (William and Benjamin, 2008).
ReplyDeleteHi Elilkumaran I agree with what you stated but according to Alfes et al (2010: 2) asserted that engaged employees perform better, are more innovative than others, are more likely to want to stay with their employers, enjoy greater levels of personal well-being and perceive their workload to be more sustainable than others.
DeleteAgreed & Further, Employee engagement has emerged as one of the greatest challenges in today’s workplace. With complexities and stringent regulations in many organizations, employee engagement will continue to challenge organizations in the future (Mishra, Boynton, & Mishra, 2014). This aspect challenges management because engagement is a critical element in maintaining the organization’s vitality, survival, and profitability. Organizations that have highly engaged employees have greater profits than those that do not. Organizations with highly engaged employees experience increased customer satisfaction, profits, and employee productivity (Ahmetoglu, Harding, Akhtar, & Chamorro-Premuzic, 2015; Carter, 2015; CooperThomas et al., 2014; Vandenabeele, 2014).
ReplyDeleteHi Uditha I agree with what you stated 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’.
ReplyDeleteDear Nadee Weerasuriya, I agree with you as you've stated that Employee satisfaction is critical to the success of any business , according to Artz (2010) Higher levels of worker job satisfaction, potentially resulting to employee engagement, have been linked to important productivity measures such as lower quit rates and absenteeism.
ReplyDeleteHi Manjula, I agree with your comments, engagement is not about driving employees to work harder but about providing the conditions in which they will work more effectively (Armstrong,2014)
ReplyDeleteAgreed on your view, further Alexis (2009) emphasizes that Innovative and creative thinking is one of the best benefits that results through a culture of employee engagement, enabling things to be done better and effective. The author further explains this is because employees are encouraged to bring out their potential, learn continuously with the accountability and freedom given with the trust embedded. Also such cultures doesn’t step back if anything goes wrong as they allow continuous development with the teamwork and great support.
ReplyDeleteI agree with you Kobigah, but according to Alfes et al (2010: 2) asserted that engaged employees perform better, are more innovative than others, are more likely to want to stay with their employers, enjoy greater levels of personal well-being and perceive their workload to be more sustainable than others.
ReplyDeleteWell said Nadee weerasooriya, Bhatla (2011) argues that the need for such employees and how their presence can improve the progress and work efficiency of the organization as a whole. Also focused on the challenges faced by the HR managers to improve employee engagement for an organization’s survival.
ReplyDeleteI agree with you Maheesh , According to the CIPD (2012: 13) to Engagement takes place when people are committed to their work and the organization and are motivated to achieve high levels of performance. :
DeleteEmployee engagement has become a focal point in today’s workforce because companies are finally beginning to grasp that in order to keep the employees are happy (Kumar and Pansari,2015).The benefits of employee engagement always balancing with how to measure it, and then how the company can start engaging the employees right way. Another benefit of investing in employee engagement is that it will help you retain your top employees and decrease your turnover rates by ensuring that your team is happy. When employees are engaged and feel that they are treated well by their managers, they will feel a sense of responsibility to reciprocate this respect by putting in their best effort AND feel that they are part of the organization they work for, and therefore would not want to let them down.
ReplyDeleteDear Bimal ,However, John Purcell (2013: 247) contended that: ‘Employee engagement is worth pursuing, not as an end in itself, but as a means of improving working lives and company performance’. And the CIPD (2012: 1) noted that: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 behaviour.
ReplyDelete