Association between Employee Engagement and Firm Performance

Running head: PSYCHOLOGY 1
Psychology
Name
Institution

PSYCHOLOGY 2
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).