Impact of Employee Engagement in organizations
Customer Loyalty
Engaged
employees tend to have a better understanding of how to meet customer needs (Right
Management, 2006) and, as a result, customer loyalty tends to be better in
organisations where the employees are engaged (Pont, 2004). Levinson (2007a)
suggests that employees who are happy in their work are more likely to create
loyal customers
Employee
Retention
Employees who are happy
in their jobs are more likely to stay in the organization (Levinson 2007a).
Employee Productivity
‘Engaged employees work harder, are
more loyal and are more likely to go the ‘extra mile’ for the corporation’ (Lockwood,
2007, p. 3)
Advocacy of the organization
Engaged
employee are more likely to recommend or promote their organization as the
better to place to work in the market as well as promote its product and
services (Scottish Executive Social Research, 2007 p. 23). Same way disengaged
employees will demotivate or discourage others to join the organization (Penna
2006)
Those
who are discouraging others to join the current organization are referred to as
‘corporate terrorists ‘(Penna 2006).
Manager Self-efficacy
According
to the research by Luthans and Peterson (2002) when employees are more loyal
and engaged with the organization to achieve the goals and respond positively
to their managers, will bring success with better performance. Ultimately this
helps their managers to be more effective and successful, the manager becomes
enthusiastic about their employees which enhances their self-efficacy.
The
reverse may also occur whereby manager self‐efficacy can lead to enhanced
employee engagement. Therefore, both engagement and manager self‐efficacy can
have a positive effect on one another to lead to more effective managers and
employees (Luthans and Peterson, 2002).
Health and well-being
Employee
engagement may result in positive health effects and positive feelings towards
work and the organisation (eg Mauno et al., 2007; Rothbard, 2001). Gallup
(Crabtree, 2005, cited in Lockwood, 2007) reported increased health and
well‐being in engaged employees, with 62 per cent of engaged employees
reporting a positive effect of work upon their physical health.
Successful
organizational Change
Employee
engagement will help for organizational change and importantly enable the
organization to be competitive in the market (Grean 2008). Further Grean (2008)
proposes that engagement may protect an organization’s bottom-line profit.
List of References
Graen GB
(2008), ʹEnriched engagement through assistance to systems’ change: a
proposalʹ, Industrial and Organisational Psychology, 1, 74–75
Lockwood NR
(2007), ʹLeveraging employee engagement for competitive advantage: HR’s
strategic roleʹ, Society for Human Resource Management Quarterly, ¼
Levinson E
(2007a), Developing High Employee Engagement Makes Good Business Sense, www.interactionassociates.com/ideas/2007/05/developing_high_employee_engagement_makes_good_business_sense.php
Luthans F,
Peterson SJ (2002), ʹEmployee engagement and manager self‐ efficacy:
implications for managerial effectiveness and developmentʹ, Journal of
Management Development, 21(5), 376–387
Mauno S,
Kinnunen U, Ruokolainen M (2007), ʹJob demands and resources as antecedents
of work engagement: a longitudinal studyʹ, Journal of Vocational Behavior, 70,
149–171
Pont
J (2004), ʹAre they really ‘On the Job’?ʹ, Potentials, 37, 32
Penna
(2006), Meaning at Work Research Report, www.e‐penna.com/newsopinion/research.aspx
Right
Management (2006), Measuring True Employee Engagement, Right Management
Robertson-Smith, G., 2009. Employee
engagement. Institute for Employment Studies.
Rothbard NP (2001), ʹEnriching or depleting? The dynamics of engagement in work and family rolesʹ, Administrative Science Quarterly, 46, 655–684
Scottish
Executive Social Research (2007), Employee engagement in the Public Sector: a
review of literature, www.scotland.gov.uk/Publications/2007/05/09111348/3
The more engaged employees are, the more likely their employer's revenue growth will exceed the industry average. Employee engagement is observed to be higher in organizations experiencing double-digit growth. Companies should foster a strong work culture in which managers' aims and beliefs are shared across all work areas. Companies that foster a culture of mutual respect by sharing success stories, not only keep their current employees engaged, but they also instill this attractive attitude of work culture in new incoming employees (Markos and Sridevi, 2010).
ReplyDeleteAdding to your comment Virosha, Engaged employees tend to have a better understanding of how to meet customer needs (Right Management, 2006) and, as a result, customer loyalty tends to be better in organizations where the employees are engaged (Pont, 2004). Levinson (2007a) suggests that employees who are happy in their work are more likely to create loyal customers.
DeleteAgreed, As per the Penna research report (2007) describe, The meaning of work has the potential to become a valuable way to bring employers and employees closer together, which helps employees to experience community awareness, become their own space, and make opportunities to contribute, and they find purpose. Employees want to work in organizations that they think work makes sense.
ReplyDeleteHi Isuri ! The employees are ‘engaged’ if they have a positive attitude towards work, Purcell et al (2003) suggest that employee engagement is only meaningful if there is a more genuine sharing of responsibility between management and employees over issues
DeleteRafferty et al (2005) also distinguish employee engagement and the two prior concepts-Commitment and Organizational citizen behavior, on the ground that engagement clearly demonstrates that it is a two-way mutual process between the employee and the organization.
ReplyDeleteHi Larry ! Agreed. Engagement is the willingness and ability to contribute to company success; the extent to which employees put discretionary effort into their work, in the form of extra time, brainpower and energy (Towers Perrin, 2003).
DeleteEmployees' Self-actualization in the workplace is linked to their engagement and performance levels. Employees actively seek meaning through their work and unless organizations try to provide a sense of meaning, employees are likely to quit. Employee engagement is a positive attitude the employee holds towards the organization and its value. An engaged employee is aware of the business context and works with colleagues to improve performance within the job for the benefit of the organization. Therefore, the organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee (Patro,2013).
ReplyDeleteHi Hakeem, The research described that employee retention is a challenging notion and there is no particular method to retain employees with the organization. Several organizations have revealed that one of the characteristic that help to retain employee is to offer them opportunities for improving their learning (Logan 2000).
ReplyDelete