Association between Employee Engagement and Firm Performance

This paper explores the association between employee engagement and the performance of the firm. It discusses whether there is a causal relationship or association between organizational performance and employee engagement. The research shows that high employee engagement leads to improved customer satisfaction, operational efficiency, productivity, profitability, and reduced turnover and absenteeism. The paper also highlights the importance of maintaining key personnel and recruiting high-performing employees in the current global business market.

Running head: PSYCHOLOGY 1
Psychology
Name
Institution

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PSYCHOLOGY
Introduction
The purpose of this paper is to discover the association between Employee engagement
and the performance of the firm. Employee engagement is essential to the competitiveness of
most institutions, particularly in the new business environment. Engagement is described as how
a person feels towards the institution. In this paper, there is a consideration of whether the two
variables that is Organizational performance and Employee engagement demonstrate causal
relationship or association.
The research conducted by different researchers demonstrates that institutions with high
employee engagement shine in customer satisfaction as well as achieve operational efficiency
and high productivity, as well as profitability (Beltrán & Bou, 2018). The additional side effect
includes the reduction of turnover and lower absenteeism. In a Construction organization,
employee engagement performs a critical role in attaining important project delivery metrics, for
example, production safety and quality. Therefore, attaining employee engagement is directly
related to profitability, productivity, safety, employee retention, as well as customer satisfaction.
Current trends of globalization of economic activities and business market made it
essential, for organizations to maintain the key personnel as well as recruiting fresh high-
performing employees (Schneider et.al, 2018).

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The figure showing the model of employee engagement
This model of employee engagement shows that most of the organizations focused on
micro-level and macro-level components of employee engagement to enhance their performance
in the market. The desired results of employee engagement, for example, improved the
performance of the organization, can only be attained after providing safer and suitable work
environment (Alessandri et.al, 2018).
Whether Employee engagement and the performance of the organization demonstrates
a causal relationship or an association
The two variables show an association since they are related. When the two variables are
linked, then there is an association between the variables. When there is a correlation, which can
also be termed as an association, then there is a relationship between the two variables. Measures
of association can determine the size of the association between the two variables. This provides
ways of summarizing the extent of the relationship between the variables (the two variables).

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The two variables have a perfect relationship with one another. This is because when there is
employee engagement in the organization, the performance of the organization will improve and
without employee engagement, the organizational performance will decrease. This, therefore,
indicates that employee engagement influences the performance of the organization positively.
The more the employees are engaged in the organization, the better the firms perform and this
has a positive influence on the outcomes of the performance such as employee retention and
customer loyalty. Firms could enhance different business functions with the use of employee
engagement. When the organization improves the factors that affect employee engagement such
as organizational culture, rewards, and incentives, leadership, career development, and
communication, then employee engagement will have a positive influence on the performance of
the organization (Golden & Veiga, 2018).
Conclusion
This paper describes the relationship between the employee engagement and the
performance of the firm. It is stated from the paper that employee engagement positively
influences the performance of the organization.

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References
Alessandri, G., Consiglio, C., Luthans, F., & Borgogni, L. (2018). Testing a dynamic model of
the impact of psychological capital on work engagement and job performance. Career
Development International, 23(1), 33-47.
Beltrán-Martín, I., & Bou-Llusar, J. C. (2018). Examining the intermediate role of employee
abilities, motivation and opportunities to participate in the relationship between HR
bundles and employee performance. BRQ Business Research Quarterly, 21(2), 99-110.
Golden, T. D., & Veiga, J. F. (2018). Self-estrangement’s toll on job performance: The pivotal
role of social exchange relationships with coworkers. Journal of Management, 44(4),
1573-1597.
Schneider, B., Yost, A. B., Kropp, A., Kind, C., & Lam, H. (2018). Workforce engagement:
What it is, what drives it, and why it matters for organizational performance. Journal of
Organizational Behavior, 39(4), 462-480.