This paper discusses the concept of employee engagement and its impact on organizational success. It identifies the drivers of employee engagement and the outcomes of employee engagement in the organization.
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Running head: EMPLOYEE ENGAGEMENT1 Employee Engagement Student’s Name Institutional Affiliation
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EMPLOYEE ENGAGEMENT2 Employee Engagement Introduction Globalization that is witnessed around the world has made management of human capital to be an essential thing for the success of any organization. It has increased the level of competition in both domestic and international markets, and companies have found it necessary to link their employees with the firm and their jobs. According toKazimoto (2016), employee engagement is defined as the investment of an individual’s complete self into a job. It has been considered a motivational factor that organizations use to realize their desired outcome. Employee engagement can be said to be the feel of sense by the employees towards their organization by investing their role and the organization as a whole. According to Schaufeli (2013), organizations that have achieved employee engagement experience enthusiasm, as well as zeal from the worker and that, translates into cohesive workplace culture. The growing level of competition requires organizations to have staff members who are highly committed to not only their particular jobs but also to the general goal of the firm (Dajani, 2015). The increasing level of economic hardship has made employee engagement even more critical as companies have resorted to limiting their hiring processes and investing. Based on these considerations, every management needs to understand various factors that influence employee engagement to realize fully engaged workers. The purpose of this paper is to identify some of the ways through which employee engagement affects the success of an organization. Drivers of Employee Engagement Specific factors have been known to influence employee engagement in nearly every organization. Through these factors, workers fee are made to feel involved among others, which enhances their level of commitment towards the organizational goals(Dajani, 2015). Some of the factors that influence employee engagement include: Recruitment and Selection The process involves identification of potential employees and placing employment offers to them(Dajani, 2015). It is at the recruitment and selection process that engagement among employees is enhanced through maximizing the person-job fit as well as commitment
EMPLOYEE ENGAGEMENT3 through the provision of advancement and growth opportunities to the worker as a compensation for their loyalty. Job Designing A job that is characterized by challenge, autonomy, and variety are more likely to be of psychological meaningfulness to employees (Wood, Veldhoven, Croon, & de Menezes, 2012). Such a job promotes employee engagement, as it is meaningful and exciting to the worker through its variety of challenges. The staff will have to be more engaged in the work to realize their full potential. Empowerment Workers are more happy and productive when they are involved in the decisions making processes. As such, promoting a trustful and challenging environment where employees are informed of various changes and are involved in making such changes promotes a high level of engagement(Govindappa & Manjula, 2017). Such environments encourage employees to own their job and fee part of the entire process, which leads to successful implementation. Training and Development Employee engagement is only possible and useful when there is no redundancy of skills. Consequently, management is expected o come up with training and development programs where employees are trained and retrained to keep them up to date with the changes in their workplace(Kompaso & Sridevi, 2010). Both current and new employees will acquire the necessary skills needed to handle their job without difficulties hence increased engagement level. Incentive and Compensation Another factor that influences employee engagement is the level of incentives and compensation. Through financial and nonfinancial benefits, the employee gets motivated to work even harder towards their personal and organizational goal(Kompaso & Sridevi, 2010). Consequently, management is expected to come up with attractive compensations and nonfinancial elements or perks like travel discount, company picnics, subsidized cafeteria, and such like.
EMPLOYEE ENGAGEMENT4 Communication Another most essential factor that promotes employee engagement is the communication. It is through communication that engagement and cohesion in the workplace can be realized. Companies with high employee engagement have an open door policy where upward and downward communication is promoted(Devi, 2017). Such an organization gives the employee an opportunity to take part in decision-making, and the boss equally hears from the worker, which promotes a high level of engagement. The outcome of Employee Engagement in the Organization It has been determined that employee engagement is an essential component in ensuring organizational success. It is possible for the company to predict the eventual outcome of the employee engagement, which can take different forms such as increased employee retention, high profits and productivity, commitment and motivation, and many others. These outcomes can be grouped into organizational results and employee outcome. Employee Outcomes Employee engagement is not only beneficial to the organization alone but also to the workers. Through enhanced engagement among staff members, the following outcome can be seen in employees. Health and Well-being Health effect, as well as positive feelings by workers towards the organization and work, is some of the characteristics of enhanced engagement among employees(Devi, 2017). When workers perceive the firm to have a healthy working environment, their level of support towards the firm is enhanced. Employees are more likely to promote a healthy relationship within the company to help improve the excellent working environment, which in turn develop their wellbeing and good health as well(Dajani, 2015). Consequently, it is possible to point out that employee engagement is one of the sure ways of promoting a healthy and wellbeing of not only the organization but also the workers. Clarification of Expectations
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EMPLOYEE ENGAGEMENT5 At the recruitment and selection stage, organizations that promote engagement among employees initiate the engagement process. Successful candidates are promised a job for life as well as opportunities for promotion, and in return, they are asked for loyalty and commitment. Increased level of competition has led to even a more explicit expectation from the employers (Bwire, Ssekabuko, & Lwanga, 2014). For instance, employees are offered higher compensation in return for more significant efforts in their work. Organizations currently demand so much from their employees than it was about 20 years ago, which has significantly frustrated so many employees who do not now understand the meaning of work. As such, current employees are focused on looking for placements that will offer fulfillment. Through employee engagement, such workers are given the opportunity to invest their time and interest in the work by matching the job and skill. Greater effort is more comfortable to realize when employees have the job that matches their skills and interest(Anitha, 2014). Employee engagement generates a sense of self- efficacy among employees, which in turn promote clarity of expectations of both the employee and the employer. Organizational Outcomes of Employee engagement Employee Retention One of the results of employee engagement is the ability of the company to acquire and retain its employees. Employee turnover rate has grown significantly over the years due to increased work challenges in workplaces(Patro, 2013). Through competition, most of the organizations have lost valuable employees to their rivals, and that is a sure way of losing competitive advantage. As such, every human resource managers works so hard to find a way of retaining the best employees(Bowra, Sharif, Saeed, & Niazi, 2012). Through employee engagement practice, workers' happiness and contentment with their work are enhanced, and they are more likely to stay in their job for quite long (Sundaray, 2011). Work engagement is one sure way of enhancing employee’s commitment to the organization, which eventually helps in reducing cases of employee turnover. Bottom Line Profit Bottom line outcomes is one of the reason management promote employee engagement. The manifestation of bottom line profit includes customer loyalty, high retention levels, and
EMPLOYEE ENGAGEMENT6 increased productivity(Patro, 2013). A positive relationship between employee engagement and improved profitability has been established, which is realized through increased sales, productivity, and enhanced customer satisfaction. An organization with a high level of engagement is associated with an increased level of profitability. It can, therefore, be concluded that employee engagement promotes increased sales, which increases company revenue and that translates into the improved profitability of the firm. Customer Loyalty At the recruitment stage, employers tend to offer higher packages to their successful candidates in exchange for loyalty. However, organizations always go beyond that by identifying the most appropriate ways of ensuring that their loyal employees help in building a loyal consumer base (Thomas, 2011). When employees are engaged in the organization, they tend to have a better understanding of the customer needs and how to meet such requirements. It through such commitments that enhance customer loyalty as their needs are met in the most desirable ways. Highly engaged employees are more likely to promote a high level of repeat purchases through the creation of engaged customers and customer loyalty (Wood, Veldhoven, Croon, & de Menezes, 2012). Satisfied consumers are more likely to come back and recommend the products or services to their friends. Engaged employees are essential in establishing a healthy mental and emotional connection between customers and the company. Employee Productivity Employees who are engaged always work hard as they are passionate about their job and are willing to realize their full potential. Such employees are known to push their effort further by even trying new ways of handling their jobs, which enhances their overall productivity levels (Shamila, 2013). Well-engaged workers have in one direction, or the other developed most of the creative and innovative products in most organizations around the world. Engagement promotes self-motivation among workers, and it is through such intrinsic motivation that greater efforts can be easily attained. Organizational Change
EMPLOYEE ENGAGEMENT7 In the contemporary world, change has become inevitable. However, most of the organization fails to successfully implement organizational change for fear of the unknown that comes with such modifications(Patro, 2013). However, an organization that promotes employee engagement is less likely to have such problems. Engaged employees are more likely to be instrumental in helping the organization implement various changes as they consider that as part of their job. There is little fear for organizational change, and the workers are involved at every stage through constant and efficient communication, which makes it easier to have a successful organizational change. Organizational Culture Every organization has their culture that they build on from time to time. One of the cultures is to have a cohesive workplace where employees can relate well to each other and by the management (Bakar, 2013). Engaged employees always part of the organizations and therefore they actively take part in promoting the organizational culture. Most of the successful organizations such as Google Company are known to have remained competitive over the years because their employees are taking an active part in promoting its culture. Consequently, an organization that promotes engaged workplace is more likely to have its culture advanced by its employees. Manager Self Efficacy Effectiveness and success of managers are mostly determined when they can get the best out the employees. Self-efficacy of the managers is therefore attained when they employees respond positively to them. Engaged employees are known to react positively to their managers, which is demonstrated through excellent performance and attainment of the desired goal. Such managers are therefore considered more successful and productive and in turn, their self-efficacy is enhanced. Conclusion Employee engagement is considered a positive attitude that employees have towards their organization. The concept is gaining considerable popularity in the contemporary world that is now characterized by increased competition due to globalization. Organizations that promote a
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EMPLOYEE ENGAGEMENT8 high level of employee engagement are considered more competitive than workplaces that are less engaged. It is influenced by various factors such as empowerment, proper job designing, recruitment, and selection. The outcomes of employee engagement are evident in multiple ways. For instance, it enhances employee retention, increased customer loyalty, successful organizational change, and increased employee productivity. Based on the increased cases of competition it has become essential for management to recognize employees as the crucial variable in realizing its competitive advantage. Through consumer loyalty, increased employee productivity, reduced employee turnover, and many another outcome of the engaging environment are essential if the company is to remain competitive in the market. However, the process can only be successful if the organization begins the process at the recruitment and selection stage and continue with it throughout. Changes in the business environment require highly engaged workers who are capable of coming up with new and innovative ways of addressing organizational challenges. It is therefore essential for the management to ensure that proper measures are taken to promote employee engagement through constant training and development. The impact of employee engagement to the organization is the overall increased organizational performance.
EMPLOYEE ENGAGEMENT9 References Akter, K. (2012, February). The role of non-financial factors in measuring organizational performance. InProceedings of International Conference on Business Management(Vol. 8). Anitha, J. (2014). Determinants of employee engagement and their impact on employee performance.International journal of productivity and performance management,63(3), 308. Bakar, R.A. (2013). Understanding Factors Influencing Employee Engagement: A Study of the Financial Sector in Malaysia.Published thesis, RMIT University. Bowra, Z. A., Sharif, B., Saeed, A., & Niazi, M. K. (2012). Impact of human resource practices on employee perceived performance in banking sector of Pakistan.African Journal of Business Management,6(1), 323-332. Bwire, J.M., Ssekabuko, J. and Lwanga, F. (2014). Employee Motivation, Job Satisfaction and Organizational Performance in Uganda’s Oil Sector.Global Advanced Research Journal of Management and Business Studies,3, 35-324. Dajani, M. A. Z. (2015). The impact of employee engagement on job performance and organisational commitment in the Egyptian banking sector.Journal of Business and Management Sciences,3(5), 138-147. Devi, S. (2017). Impact of employee engagement on organizational performance: A study of select private sector banks.International Journal of Commerce and Management Research, 10-13. Govindappa, D., & Manjula, V. (2017). Impact of employee engagement on organizational success: A study in TATA Advanced Materials Limited, Bengaluru. Kazimoto, P. (2016). Employee engagement and organizational performance of retails enterprises.American Journal of Industrial and Business Management,6(04), 516. Kompaso, S. M., & Sridevi, M. S. (2010). Employee engagement: The key to improving performance.International journal of business and management,5(12), 89. Patro, C. S. (2013). The impact of employee engagement on organization’s productivity. In Proceedings of 2nd International Conference on Managing Human Resources at the Workplace, Mysore, India.
EMPLOYEE ENGAGEMENT 10 Schaufeli, W. B. (2013). What is engagement? InEmployee engagement in theory and practice (pp. 29-49). Routledge. Shamila, V.J. (2013). Employee Engagement—An Approach to Organizational Excellence. International Journal of Social Science & Interdisciplinary Research,2, 111-117. Sundaray, B., (2011). Employee engagement: a driver of organizational effectiveness.European Journal of Business of Management,Volume Vol. 3 No. 8, pp. 53- 60. Thomas, J. X. H. C., (2011). How can leaders achieve high employee engagement?Leadrship & Organization Development Journal,Volume 32 iss 4, pp. 399-416. Wood, S., Veldhoven, M.V., Croon, M. and de Menezes, M.L. (2012). Enriched Job Design High Involvement Management and Organizational Performance: The Mediating Roles of Job Satisfaction and Well-Being.Human Relations, 1-27.