Employee Engagement: Impact on Business Outcomes and HR Strategies

This report delves into the critical concept of employee engagement within organizations, exploring its definition, principal dimensions (including social, affective, and intellectual aspects), and its impact on company growth. It examines the key drivers of employee engagement, such as motivation, job satisfaction, innovation, and functional flexibility, and their benefits for stakeholders, including employees and employers. The report emphasizes the need to align employees with organizational purpose, values, and business strategies, highlighting the role of human resource management in fostering employee engagement through strategic practices. It also contrasts employee engagement with organizational commitment, underscoring the former's broader scope and influence on achieving business outcomes, including enhanced productivity, innovation, and staff retention. The analysis also covers the benefits of employee engagement for stakeholders, highlighting how employee engagement leads to increased productivity, innovation, and staff retention, ultimately creating a more positive and successful work environment.

Running head: EMPLOYEE ENGAGEMENT
EMPLOYEE ENGAGEMENT
Name of the Student:
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Author Note:

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Introduction:
The aim of this paper is to discuss the employee engagement in an organization and
its effect on the growth of the companies. This provides the companies competitive leverage
in the saturated market by increasing the potential in the operations, mitigate problems
internally and more importantly enhance the productivity of the firms. It is the responsibilities
of the human resource managers to take good care of the employees and keep them motivated
in such way that reduces the absenteeism and employee turnover in the organizations. The
paper will be discussing the importance of employee engagement and discuss the principal
dimensions associated with social, affective and intellectual. The principle drivers of
employee engagement will also be discussed in this report along with the methods of aligning
the employees with the goals and objectives of the organizations. There are different
diagnostic tools which are used to increase engagement of the employees in the organization
in one hand and input the employee value proposition of the organization on the other. This
paper will include the human resource management strategies to increase engagement of the
employees because the disengaged employees damage the work output as well as reputation.
AC 1.1
Brief definition of employee engagement and principal dimensions:
Employee engagement is a property of the relationship between the employees and
organisations. This is a fundamental concept in the effort to understand and describe the
motivational abilities of the employees in the organizations. The engaged employees are
completely absorbed by their works and feel enthusiastic to contribute their skills to the
growth of their companies. The organizations that have a high employee engagement, can

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overcome any type of challenges in the company. The employee engagement process takes
positive actions to further the reputation of the organization along with its interest.
There are five key dimensions of employee engagement process include
 employee involvement, intellectual, affective, social
 Awareness of organisation strategy, SLA’s/KPI’s
 Empowerment/role enrichment
 Psychological contract, mindset, attitude, discretionary behaviours
 Team-working/knowledge sharing, knowledge communities
Through promoted employee engagement, the organizations can manipulate the
growth of the employees and increase their involvement with the company where they work.
This directly connects the skills, intellect and social growth of the employees in one hand
along with their organizations. The ore the employees are engaged with their organisations,
they come to know various facets that actually help the managers to make new policies or
strategies for the organizations. The key performance indicators that help the organizations to
understand their capabilities based on which the strategies will be developed. The managers
when successfully motivate the employees to become engaged with the organisational
operations, actually lead to role enrichment (Kwon, Farndale and Park 2016). The employees
come to know about the service level agreements and the strategies for performing better in
the competitive market of the business world they become more involved with the
companies. The knowledge about the company’s operation empower the employees as they
know how they can contribute their skills to the growth of the company.
Along with the empowerment and growing attachment of the employees with the
organizations, the attitude and behaviours of the employees are changed to positive one. The
employees when feel that the managers and the organizational strategies are depending upon

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their skills and competitiveness, they feel important. Thus the psychological attachment of
the employees with the organizations increases. This positively bring changes in the mindset
of the employees and the managers and eliminate different negative issues within the
workplace. The key principals of employee engagement also relates to the promotion of
teamwork within the organization (Kwon, Farndale and Park 2016). The more the employees
are able to collaboratively, the more they will share their knowledge. Thus engagement of the
employees with the organizations connect a large and important part of the asset possessed by
the organization in one hand and provide a competitive leverage to the organization on the
other.
However there is a subtle difference of employee engagement with the organizational
commitment. The employee engagement is much more professional term but commitment
relates to the psychological or emotional connection of the employees with their works or for
that matter their companies (Lee 2015). The employees when are committed to their works
and organizations, are bound emotionally with their companies which is different from their
passion to be engaged with their works. In the employee engagement, the staffs are
passionate to attain the organizational goals, their connection with their co-workers, the
personal and professional growth and the growth of their organizations.
The concept of the employee engagement is broader than the commitment because the
latter only focus on the employee satisfaction with their works. The employee engagement
goes one step further where the employees make discretionary effort to attain the
organisational goals. For instance if an employee is highly committed to the organisation, he
or she may find that the personal and professional growth is being limited (Cunningham
2016). This leads to high turnover as the organisational commitment keeps on changing when
employees change their workplaces (Lee 2015). On the contrary, is an employee is high

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engaged with his or her company, it is difficult to demotivate him or her as he or she knows
all the strategies, operation and challenges that the company faces.
AC 2.1, 2.2
Principal drivers of employee engagement and benefits for stakeholders:
The concept of employee engagement relates to the employee development which
helps the companies to endure all the pressure during the tough time. This unbreakable nature
evolved through strong employee engagement in the organizations. This is why the employee
engagement scholars have found out some of the most important rivers of employee
engagement in the top level organizations in the business world. The most important of these
is the factor of motivation which encourage the employees to cling with the good or bad
situation of the organizations (Kang and Sung 2017). This is related to the enhanced
commitment, discretionary efforts and motivation of the employees. The more the employees
are committed to their works, the more they are engaged with their organizations.
The first driver of employee engagement is the feeling of job satisfaction which is
attained through proper leadership skills of the mangers of the company because proper
motivation process creates scope for attaining higher levels of skills (Taneja, Sewell, and
Odom 2015). The employees are motivated to gain more knowledge and sharing of them so
that the other employees get scope to have more knowledge to grow. The motivation driver
increases job satisfaction of the employees and reduce instances of absenteeism as well as
turnover level.
The second driver of employee engagement is scope for innovation and creativity.
The effectiveness and efficiency of the organizationally enhance when the employees are
empowered enough to contribute their skills to compete the tasks. Through diverse
understanding process and the creative ideas, the employees can solve different types of

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problems with a limited period of time (Gupta and Sharma 2016). This makes them feel
satisfied in the job and considerate of their important in the organizational operations. This
enhances employee engagement of a corporation.
Thirdly, the knowledgeable employees when gets the chance to become more
functionally flexible can adapt to the changing situation of the organizations. The tenured
employees gradually share their knowledge to the not so knowledgeable employees that
eventually make a positive work culture eliminating all the problems.
Fourthly, the company cuts costs through enhanced functional flexibility of the
employees. The more fictional the employees will be the more profitable the organizations
will be. The process of enhanced functionality, leads to have fewer mistakes and reduced
absence.
Finally, the drive of brand enhancement of the employer and employee can enhance
employee engagement in the organizations. The more the organizations can promote this
brand, the more they can become the employer of choice (Pandita and Bedarkar 2015). For
example, Google is the most preferred employer because of its initiative to employee
engagement process.
The benefits of successful employee engagement in an organization, include the
operations of the stakeholders associated with the organizations. The most important
stakeholders here are the employees and the employers. The process of employee
engagement leads the organizations to be the happiest place to work. The negative impact of
cultural diversity, change management and policy changes do not touch the positive
workplaces. This is due to the fact that the employees here are more fulfilled as capable of
delivering improved business performance. As the employee engagement process promotes
the relationship of the employers and employees, the efficacy of the employers get enhanced

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(Popli and Rizvi 2016). The business performance gets increased and the employers get the
opportunity to gain a competitive leverage even in a saturated market.
The positive attitude of the employees are evidence of profit of the companies, growth
of their revenue the satisfaction of the customers. By enhancing the relationship of the
employees and employers, the companies assure productivity from the employees. The
human resource is the most valuable asset of the companies. Therefore, the employee
engagement process increases staff retention, health and safety, performance and innovation
of the corporations. The more engaged the employees are with their employers, the more
innovative and creative the firms will be (Karanges et al. 2015). This is due to the fact that
the employer get the chance to incorporate their individual creative skills so that the
performance of the company gets increased.
From the points of view of the employees the benefits are related to four factors that
include safety, health, happiness, pay and advancement. The more engaged the employees
are, the more safe they feel in the organisation. The engaged employees feel less stress as
well as higher interest levels during their work hours. They are happier and have more
positive mindset than their counter parts in other companies (Karanges et al. 2015). Those
who are engaged in what they want to be the part of and remain satisfied with their
contribution to the growth of the business. The engaged employees enjoy the benefit of
timely payment and other facilities. As the human resource of the companies are motivated
and engaged to the growth of the organization, the employers try to satisfy them with the
right payment and other facilities like fast promotion, career growth and higher wages.

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AC 1.2
Need for aligning employee engagement:
The employers in the organisations must be able to align their employees with the
purpose, values and mission and business strategies of the companies. Different organizations
have different types of values, purpose, mission and business strategies that help then tm to
stand out in the competition. In addition to this, the brand recognition is highly dependent on
these factors previously mentioned. Now the performance or the capabilities of the
organizations directly promote these factors which directly refers to the capabilities of the
human resource of the corporation. Starting from the marketing to sales, production and
customer care, all of the operations are done by the human resource. This is the reason why
the human resource management strategies perfectly include employee engagement
processes. This is a vital part of HR strategy and guide the organizations to fulfil the aims and
objectives in a proper way.
In most of the cases, the objectives of the organizations relate to the enhancement of
the product or service range, customer service, flexibility of the provisions and expanding in
the other markets of the world (Karanges et al. 2015). All of these objectives are to be made
very clear to the employees so that they can understand the status of their companies where
they work and contribute their skills whenever it is possible. The manager of human resource
therefore need to align the HR policies according to the needs of the employees and provide
all the facilities need for increasing employee engagement.
The HR strategies need to incorporate the employee engagement methods because it
is important for the employees to empower the employees. The employees are to be engaged
with the business strategies to sustain high performance (Singh et al. 2016). As employee
engagement allows the organisations to develop productivity and profitability, the managers

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need to lay strategies that how they will be motivating the employees positively for
increasing engagement. The need of aligning process, the HR managers focus on the long
term development of the organizations and attain sustainability of the firms in the competitive
situation. In addition to this, the employees when are engaged can effectively collaborate to
complete a task or project within a limited period of time. This increases the firm’s
competitiveness and communication both horizontal as well as vertical are promoted (Mann
and Harter 2016). This enhances the employability of the companies in a particular industry.
This is the reason why the HR managers of a firm of any size and any sector focus to align
the employee engagement with the value, mission and vision of the organizations.
AC 3.1
Different diagnostic tools:
There are different types of diagnostic tools present based on which the management
of the companies understand the levels of employee engagement. The organization in the
modern business scenario take help from the different types of surveys in the companies to
understand how much they are able to engage employees to create positive outcome or profit.
However, only surveys do not help the companies anymore because there are different factors
started to affect the HRM in this complicated business scenario (Mann and Harter 2016).
These surveys are expensive to conduct as the companies now a days are becoming more
expansive in different markets. In addition to this, the data collected through these surveys
often becomes outdated resulted into difficulty in identifying low performance teams.
Along with the survey method, the Diagnostic tools like change of attitude online
pulse surveys, continuous consultation, employee forums, temperature checks, focus groups,
learning and development, employee representatives, improvement groups, quality circles
suggestion schemes, coaching, princess, instant feedback and suggestion schemes are

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important. The human resource manager when comes across the feedback of the employees
regarding their job satisfaction and the facilities they get from the organisation can
understand the situation more appropriately. The managers keeps on Consulting with the
employee forums in the organisation so that there is no scope for conflict between the
management and the employees or among the employees themselves (Mann and Harter
2016). The engagement level of the Employees with the organisation or their jobs are
understood through employee representatives. These representatives act as the medium
between the common workers and the management. The problems and issues which the
ground level stuffs are feeling are directly conveyed to the managers so that the problems do
not take new and complicated turn.
The meetings where the human resource manager’s employee suggestion schemes
that asks for suggestions from the employees irrespective of their age and experience can
effectively help the managers to understand the level of employee engagement with the
organisation. Based on the feedback and survey the management can understand the
frustration and negative consequences of policies. These gap are properly identified so that
the employees can get the scope of coaching and appraisals on the basis of knowledge
(Robertson 2019). In many cases one particular Diagnostic tool of employee engagement is
not enough because the diversity and experience of the employees are different in different
departments of an organisation. High attrition rate and absenteeism of the employees can be a
dependable tool for understanding whether the employees are engaged with their workplace.
In that case using 2 or 3 effective Diagnostic tools for the week ok and introvert employees
are needed so that their feedback are also collected and incorporated in the new strategies or
policies of the organisation.

10EMPLOYEE ENGAGEMENT
AC 3.2
Employee value proposition:
The organisations usually develop employee value proposition in order to provide
consistent platform for the employer branding as well as experience management the
employee value proposition is a magnet which attract the candidates will be applying for jobs
in the industry. It is the balance of the rewards as well as benefits which the employees
receive in return for their performance at their workplace (Robertson 2019). This is an
employee centred approach that helps in aligning strategies of HRM with engagement of the
employees. This helps in Hindi creating workforce planning strategy because the elements
like existing employees and the external target audiences are incorporated in in such
planning. In every organisation the EVP must be unique which will create a brand
recognition among the job seekers in a market. This must be relevant and compelling so that
this act as the key driver of employee attraction, engagement and retention.
In different International organisations the human resource management put
importance on the value proposition of the employees which help them to increase employee
engagement and satisfaction of job to increase productivity of the firms. In most of the cases
single value proposition process do not support the International Organisation for employee
engagement (Ruck, Welch and Menara 2017). This is the reason why the resource strategies
include more segmented approaches. The employees are segmented in such a way that the
employee groups do not remain homogeneous but seek different layers of value proposition.
For instance in the international fast food chain McDonald’s the employee value proposition
relates to fun, flexibility and future. It is associated with the factor whether the employees are
enjoying their works and contributing their skills completely for energizing atmosphere. It is
the team oriented performance which help the organisation to achieve the goal. Therefore in

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the team the involvement of every employee and their contribution for achievement of the
goal are essential.
The human resource management of McDonald’s consider employee value
proposition greatly because the managers understand that the human resource will be the only
way to maintain good reputation among the customers, expand in the new business territories
and make profit exponentially (Ruck, Welch and Menara 2017). The human resource
management strategy of McDonald’s allow for providing the employees all the needed scope
for personal growth and needed professional skills which day will be contributing to their
team projects and ultimate lead to the growth of the organisation . It is not the fact that the
employees in this organisation only enjoy their tasks and do not take responsibilities. On the
contrary the more the organisation create value for the employees the more responsible the
employees become. The components of compensation, benefits, career, work environment
and culture positively contribute to the employee engagement and create a competent and
highly skilled human resource asset for the organisation.
AC 3.3
Relevant HR strategies:
As mentioned before the employee engagement is completely monitored by the human
resource managers of any organisation. Starting from the small medium and large
organisations the human resource managers are responsible to take care of the wellbeing of
the employees in one hand and see whether they are perfectly engaged with their jobs. The
low employee engagement can affect the productivity of the forms and question the
effectiveness of the HR policies (Albrecht et al. 2015). The companies across the globe are
affected by the employee disengagement because most of the workers in the international or
multinational companies try to seek for personal and professional growth. They consider the

12EMPLOYEE ENGAGEMENT
more they will change their workplace the more they will learn. This is the reason why these
employees do not show commitment or engagement with their organisations in anyway. The
human resource management therefore face absenteeism and attrition rate for which the
expenses of the organisation gets increased. There are few HR strategies which can boost the
employee engagement. These are-
 Effective communication
 appreciation
 feedback
 human conversation
 flexibility
 reward and recognition
 incentives
 quality and fairness
 learning and development
 coaching and mentoring
 employee employer branding
 Ethics and accountability.
This is truly very important that the communication among the employees and the
management level must be transparent. Here the human resource managers act as media
between the higher levels of employees with the lower level. Transparent communication
between these two levels clear any miscommunication and misunderstanding (Bailey et al.,
2017). Moreover effective communication the HR managers can get the scope to listen to the
employee voices which may lead to bring some changes in the policies and operations of the
organisation.
When the HR managers listen to the employee voices then either they appreciate or
neglect. The more the HR managers are appreciative to the initiatives of the employees the
more engagement they can enjoy. It is a consequence of feedback which the HR managers
collect from the ground level employees and support the growth.
Another major strategy of employee engagement relates to the flexibility and agility
of the managers to solve any type of issues in the human workforce. It can be a small need of

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the employees or demand for changing any particular policy (Mone and London 2018). The
more Agile and flexible the HRM of an organisation is the more dependability they gain from
the employees. When the employees see that their managers are taking initiatives
immediately, they feel attached with the workplace and employee engagement increases.
Reward and recognition is a method of motivating the employees in a workplace. On
the basis of performance and contribution to the growth of the organisation the employees are
recognised by the human resource. This encourage the staff to contribute their skills for
innovative operation. In this regard incentives and other facilities also motivate the ground
level employees who you do not only work for financial reason.
In many cases the employees seek learning and development process from the higher
level managers for or mentors. In order to find out modern solution for modern problems
continuous learning about the change of business industries are necessary. This is the reason
why the employees have to be very competent to adapt to the changes and know there
industry in depth (Mone and London 2018). The more learning and development facilities are
given the more competent the employees become. This HR strategy promote employee
engagement through learning and development process.
Finally the HRM strategy of providing ethical and moral support to the Employees
while achieving the goal, can enhance employee engagement. The employees will find that
their organisation is operating ethically and meeting all the needs of the stakeholders in a
proper way they feel empowered and trust the organisation where they work. They feel that
their efforts are properly utilised so they must continue for the organizational growth. The
HR strategies regarding ethical decision making through code of conduct of the organisation
can empower the employees to question and oppose any type of unethical steps in any
department.

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Conclusion:
Therefore it can be concluded that employee engagement is a very important factor
for any type of organisation. The human resource is the chief asset which organisations
possess therefore they must take care of the interests of the employees. The more the
employees will be engaged with their job the less they will leave their organisation. Engaged
employees always contribute their skills for the growth of their organisations in such a way
that it get scope for attaining competitive leverage in any type of market. As the human
resource is responsible to expand and successful operation of the organisation the HRM
strategies must be supportive of the employee interests. By giving monetary emotional and
learning and development support the employees can be motivated. The more the employees
will be e encouraged to contribute their creative skills for the growth of their companies the
more engaged they will be. there are differences in organisational commitment and employee
engagement but there are certain Diagnostic tools which help the human resource managers
to identify whether his workplace is engaged or not. Employee value proposition will help the
organizations to play effectively but they must be unique and relevant so that the employees
can get benefitted.

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