1. Introduction
According to the Harvard Business Review, engaged organizations are
twice as successful as less engaged organizations
The study conducted by Gallup organization (2016) on the benefits
of employee engagement, it is stated that employee engagement is at a rise. According
to them 34.1% of employees had been
engaged as of March 2016, and that had been the highest employee engagement
rate since 2011, the year where Gallup had initiated the said tracking system
towards assessing employee engagement
In order to get a perceptible view on the benefits of employee
engagement, it is important to peruse literature and previous researches which
had been conducted on same and how the benefits had been recognized.
2. Literature on benefits through employee engagement
In order to identify the significant relationship between the
employees being engaged in their duties how the same has influenced companies
in a constructive manner, there had been research studies conducted worldwide.
A wide range of companies in different countries had been taken into
consideration in order to assess the same. A summary of several studies, which
have proven the positive relationship between employee engagement and
organizational performance, could be stated as follows.
A) Research study
conducted by professional service company Towers Perrin: During their research study they have identified that when an
organization’s employees are engaged in their duties, the company has
outperformed its immediate competitors in terms of both performance and
profitability by 17%. Also they have
stated that the positive relationship between financial performance of the
company and its employees being engaged is significant
B)Study conducted by Sirota Consulting UK Limited: During year 2004, twenty eight multinational companies had been taken into consideration by the UK based company who perform management consultancy activities. During their study , the company has identified that the average share price of the organizations, where they had identified that the employees are “ engaged” is rising at 16%, whereas the others have shown only 6%. The study has further revealed that a 10% increment in the engagement levels of organizational employees will direct to 6% increment in customer satisfaction and the company profits have a positive impact in the region of 2%.
C)
The ISR Published
survey article (2005) on Employee Engagement: The global research and
consulting firm ISR had published an article on their August edition 2005, that
the company profits had fallen by 1.38% and the operational profit margin by
2.01% during a survey conducted by them over a period of 36 months, which also
proves that there is a direct relationship with organizational profits on
employees being engaged.
D)
Gallup research
productivity through employee engagement: Gallup organization (2015) had
conducted research on employee engagement and its benefits. It is stated that
it has revealed that the employees are more productive and more customer
focused and less likely to leave the organization , and enable companies be more
profitable than its competitor
E)
Watson Wyatt (2002)
survey has revealed that organizations with employees who are high-committed
have out-performed their competitors by 47%. Moreover Stafford University has
also suggested that commitment of employees have a positive impact in the
region of 30% - 40% on corporate performances
3. The Benefits
revealed through studies on Employee Engagement
Upon perusing above literature, and more literature through books on
the benefits on employee satisfaction , we could further learn on same through
the following video published by Bython Media
who helps companies build relationships with highly-qualified prospects
through best-in-class marketing, content, and publishing solutions
Video 3.1 – Benefits of Employee
Engagement
Source:
We could summarize the
findings into the following 10 elements as shown in the following illustration;
Figure 3.0 : Benefits of Employee Engagement
(Source: Imperatori 2017)
Gallup organization (2015) has found that unemployed employees cost
the United States between $ 450 billion and $ 550 billion each year, losing
productivity at a larger scale. Another Gallup research study, conducted in
2012, also found that companies with a high level of commitment had 21% higher
productivity rates. So the key is that employees tend to be more productive
when they are happy with their jobs. Moreover a happy employee is a loyal
employee to the company. It reduces staff turnover and thus reduces heavy employ
costs. When employees are satisfied with their work culture and values, they
are more likely to stay in that position and remain and be dedicated.
In corporate environment time is equaling money and organizations
need to minimize disengagement. When the employees gets engaged it will
decrease absenteeism, hence productivity and performance will be at its optimum
levels which has a positive impact on the bottom line of the company. Every
employee becomes the company ambassador, and once the employee is engaged, he
will eventually contribute the company in a positive way towards higher
customer satisfaction.
References;
Baldoni, J. (2013). Motivating People. Harward
Business Review .
Catherine T, K. A.
(2014). Employee Engagement in Theory and Practice. New York: Routledge.
Dickson, D. (2011). Fostering
Employee Engagement. Amherst: HRD Press.
Frank, N. (2018). The
Gallup Poll: Public Opinion. London: Rowman and Littlefield.
Gagne, M. (Marylene). The
Psychology of Employee Engagement. 2014: Oxford Univercity Press.
Helyer, R. (2010). The
Work-Based Learning Student Handbook. Hampshier: Macmillan .
Imperatori, B. (2017). Engagement
and Disengagement at Work. Milan: Springer.
Russell L, J. R. (2010).
Engage Your Workforce. Alexandria: ASTD Press.
Sarah, C. (2008). The
Essential Guide to Employee Engagement. London: Koganpage.
Warkentin, M. (2015). Trends
and Research in the Decision Sciences. New Jersey: Decision Sciences
Institute.
Agree with you, Proper employment contributes to higher profits and at the same time increases productivity (Patro, 2013).
ReplyDeleteAccording to Gallup data, only 33% of employees reported they are engaged at work. Low engagement can be caused by several factors including lack of recognition by managers, poor company communication and not being aligned with the mission of the company. It’s clear that company leaders need to start viewing employee engagement as a strategic business objective because engaged employees lead to long-term employee retention, higher levels of productivity and improved quality of work.
ReplyDeleteI do agree with you .This further results organizations not functioning as per the management desire, and therefore leadership is an essential driver that can put employees getting engaged. Leadership is identified as a key driver of employee development and employee engagement. (Tomlinson, 2010).
DeleteAs a response to cooperate HRM environments, ‘'Over the past 15-20 years the professionalization of the corporate and social talent modules have been dramatically changed the way skillful employees are found through universities, technology, recruitment agencies, sophisticated recruiting techniques, and the Internet media’' (Eskenazi 2018).
ReplyDeleteAccording to the Wagner & Harter, (2006) employees who are engaged to the organization have average higher customer satisfaction rate and generate more revenue.
ReplyDeleteFurther, Harter (2002) has stated that he has examined "the relationship between business _ unit level employee satisfaction _ engagement and the business _ unit outcomes of in customers satisfaction _ productivity, profit, employee turnover and accidetns ".
DeleteSirisetti (2012), stated that improved engagement arises when there are positive working relationships, employee input in decision making, and assist to growth and development with learning opportunities. Workplace aberration that is aspects that destruct an organization, will decrease as employee engagement increases (Johnson, 2011). Positive mindset can turn into benefits for companies, management and workers (Rousseau, 2006).
ReplyDeleteIn addition "communication" has been identified as an important Key fact which can improve engagement, effective communication will increase employee engagement, enhance work place productivity and run business progress. It is stated that communication is the foundation of an engaged workplace (Garner, 2012).
DeleteRight you are! I agree with your thoughts. Your explanation is very strong. For all businesses, employee engagement activities are very important. Several beneficial consequences of employee engagement programs. All businesses should plan employee engagement events for their workers and develop the employees' morale and bonding factor (Markos & Sridevi, 2010).
ReplyDeleteKaliannan and Adjovu (2014) also found that committed and engaged employees are the recipe for attaining organizational goals through higher productivity. Farouk (2014) agreed that employee engagement impacts on organizational productivity as engaged employees exercise an element of care in what they do and in their efforts to contribute to the success of the organization through a greater sense of ownership and accountability. The 2016 meta-analysis also verified that employee engagement relates to productivity (Gallup, 2016).
ReplyDeleteThank you Thilini.One of the most important goals in any organization is to increase its productivity,and enable people play a central role in creating productivity. If we look at literature on human resource efficiency , factors affecting same and typically recommend for employee engagement (Working Mother, 2001).
DeleteAgreed with your statement ,According to Cabonara, (2012) When an employee is engaged, he understands his or her tasks in the business goals and inspires his colleagues to work together to meet the organizational common goals. The optimistic attitude of employees to their organization and their value system is also identified as the positive emotional connection of employees to their work.
ReplyDeleteEmployees should be really interested in practicing teamwork and paying attention to the mission. They need to be responsible and what is to be done and know whatever they do effect and is valuable to the group. This provides them the opportunity to grow and develop their skills and ultimately achieve the organization goals. Shared vision " is something that the entire team shears. " It's one vision that units and inspires the team members individually and collectively"( Gordon ,2018).
DeleteTotally agree with your statement that Companies with higher employee engagement achieve profitability, customer satisfaction and higher productivity. Also, Positively impact on where a personal goes above and beyond the call of task, so as to increase the level of ownership, and to further the business interest of the organization as a whole (Dajani,M.A.Z.2015).
ReplyDeleteThank you Thanuja.Employees should be really interested in practicing teamwork and paying attention to the mission. They need to feel responsible for what they do and know that whatever they do adds value to the group and they can also grow and develop their skills and ultimately achieve the organization goals, the key word is " shared vision "is a vision that the entire team shears. " It's one vision that units and inspires the team members individually and collectively"( Gordon ,2018).
DeleteAdmit your statement and in current challenging environment employee engagement experience and effect both the organization and employees (Osborn and Hammoud 2017). Even employees can utilize contract agreement amenities to encumber the attainment of the goals and objectives of organization and organization capability to anchorage employee engagement blueprint is critical for them (Sun and Bunchapattanasakda 2019).
ReplyDeleteThank you Dimuthu .Morever engagement is a way to allow employees to use their abilities, to think about using their creativity and to be involved in decision-making and participation."A more engaged workforce is more adaptable and therefore can be deployed more readily and likely at lower overall costs"(William H , Macey , 2011).
DeleteEngagement a positive attitude held by the employee towards the organization and its values. An engaged employee is aware of the business context, works with colleagues to improve performance within the job for the benefit of the organization (Sodhi, 2011)
ReplyDeleteThank you Asanka, In addition organization should adopt and improve level of engagement and on the other hand mutual relationship should be with on employer and employee ( Khadilkar, 2017).
DeleteHi Bakshi, agreed on your points and moreover the benefits of engage employees are well known and also having an engage employee on the job benefits your organization in many ways. Burke (2020) describe hat an engaged employee is likely to:
ReplyDelete• positively influence other employees
• be more productive and profitable
• provide better customer service
• be more enthusiastic about their work
• be comfortable staying in their role
• offer positive suggestions for the organization
Thank you Eranga.On of the most precious privileges of employee engagement is that it helps to get more employees involved in their jobs, using their skills , experience and competencies ( Garber, 2012).
DeleteEmployee engagement is a relatively new concept (Macey & Schneider, 2008) and the factors that produce engagement may be different from those that produce more traditional employee outcomes such as job satisfaction and organizational commitment (Macey et al., 2009).
ReplyDeleteInteresting reading and adding more to your blog. Wickham(2020) explained that, there are basically 10 benefits of Employee Engagement and they directly impact to organization.
ReplyDelete(a) Increased employee safety
(b) Better employee health
(c) Happier employees
(d) Greater employee satisfaction
(e) Better home life
(f) Lower absenteeism
(g) Higher retention
(h) Greater employee loyalty
(i) Better customer service
(j) Better quality
Robinson et al (2004) define employee engagement as “a positive attitude held by the employee towards the organization and its value. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee.”
ReplyDeleteI would like to add more benefits which employers get from employee engagement. Satisfied & happy employees create loyal customers to the business (Robertson-Smith and Markwick 2009). As well as higher Employee Satisfaction, Higher Retention and Lower Turnover, Higher Productivity, Increased Profitability, Less Absenteeism can be identified as benefits from employee engagement.
ReplyDeleteAccording to (Berger and Berger, 2003; Burbach and Royle, 2010; Capelli, 2008), talent management has become a central component of corporate human resource strategies and has recently gained increasing interest in the area of HRM/HRD research.
ReplyDeleteTotally agree with your statement that Companies with higher employee engagement achieve profitability, customer satisfaction and higher productivity. Also, Positively impact on where a personal goes above and beyond the call of task, so as to increase the level of ownership, and to further the business interest of the organization as a whole (Dajani, 2015).
ReplyDeleteThere is also research to show that in service environments employee engagement impacts customer satisfaction because employees are more likely to treat customers more fairly when they are engaged in their work (Sherwood, 2013).
ReplyDeleteInformative Blog! Here are some creative Online employee engagement games for corporate companies through you can keep their remote workers engaged and excited.
ReplyDelete