Impact of Employee Engagement on Organisational Performance

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Running Head: HUMAN RESOURCE MANAGEMENT
Analysing the Impact of Employee Engagement on Organisational Performance: A Case of
Hospitality Industry of Australia

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Introduction and Problem Statement
In the current business scenario, one of the greatest assets available with any company is its
talented workforce. It is apparent that the attitude of employees toward their organisation has
a significant impact on how they view their jobs and commitment towards the organisation
(Kumar & Pansari, 2015). It is defined as the involvement and the commitment that an
employee has for the values and beliefs of an organisation (Patro, 2013; Dajani, 2015).
Employee engagement is directly linked to employee satisfaction (Osborne & Hammoud,
2017; Bhavani, Sharavan, & Arpitha, 2015).
If an employee is committed and happy with his work profile and work environment, it is
likely that the organisation enjoys a high employee and job satisfaction levels which is
reflected in the form of increased employee productivity (Al-dalahmeh, Khalaf & Obeidat,
2018). Holston-Okae and Mushi (2018) explain that various aspects of employee engagement
can be used in explaining the employee retention and turnover in the Australian hospitality
industry. Ensuring a high degree of employee engagement can help organisations with
dealing with a lot of issues such as employee absenteeism, employee turnover, productivity
issues, and organisational effectiveness (Sarangi & Nayak, 2016).
The hospitality and tourism industry of Australia employs more than 1.4 million workers and
the contribution of tourism sector to the economy alone is approximately 40 billion dollar
which makes it essential for the companies to deal with the employee related issues (Chua,
2017). The staff turnover ratio in the industry is reported to be 48.66% of which lack of
employee engagement is a major contributor (Healey, 2017).
Aim and Objectives
The aim of this research proposal is to analyse the impact that employee engagement has on
the performance of organisations working in the hospitality industry of Australia. The focus
of this research will be on identifying the activities that are used by hospitality organisations
for work engagement and the manner in which it impacts their performance. In order to
successfully address this research aim, following research objective are developed.
 To determine the benefits of employee engagement for businesses
 To determine the relationship between employee engagement, employee satisfaction,
and organisational performance
 To identify the factors that affect employee engagement
 To identify the employee engagement activities used by the hospitality sector
 To analyse the impact of employee engagement on the performance of organisations
working in the hospitality industry of Australia