Importance of employee engagement

Engaged employee/s highlighted in a way, that is good for both employee and the organization. Key characteristics showed by engaged employees are not limited to but most of the time: positive attitude towards work, interested and excited about the job, put full effort to do the task and not limited to a frame (Armstrong, 2008). A description on engaged employee have given in Armstrong (2008) as ‘who is aware of business context, and works closely with colleagues to improve performance within the job for the benefit of the organization’. 

Above paragraph had explain characteristics and description on engaged employee. Without any doubt, the paragraph shown positive facts of an engaged employee. Nothing negative is listed in the previous paragraph. It also prove by following statement found in Armstrong (2010) ‘employee engagement will be manifested in positive attitudes (for example job satisfaction, organizational commitment and identification with the organization) and behavior (low labor turnover and absence and high citizenship behavior) on the part of employees; and evidence of perception of trust, fairness and a positive exchange within a psychological contract where two-way promises and commitment are fulfilled’. 

Example from Parent & Lovelace (2015) says that Similarly, at Standard Charted Bank it was found that branches with highly engaged employees produced 20% higher returns than branches with lower engagement scores. Marks and spencer reported that a 1% improvement in employee engagement produced almost a 3% increase in sales per square foot. Sure, that engaged employees directly or indirectly helps to increase revenue growth (Sridevi & Markos, 2010). High level of employee engagement will result in maximizing discretionary effort, taking initiative, wanting to develop or aligning actions with organizational needs (Armstrong, 2010).

Figure 1 - Benefits of employee engagement

(Nguyen, 2015)

Above image “figure 1 – Benefits of employee engagement” have indicated eight benefits, that gain by good employee engagement. All above indicated facts showed importance of employee engagement. From the eight benefits that are highlighted on the image “figure 1 – Benefits of employee engagement” shows benefits for both employee as well as employer, by having good employee engagement in an organization. As an example: -

Employer/organization have benefits such as:

    1.    High performing organization

    2.    Satisfied and loyal customers

    3.    Productive and profitable organization

    4.    High performance work force

    5.    Committed employees

 
Employee have benefits such as:

   1.    Supportive co workers

   2.    Job and career satisfaction

   3.    Credible leadership

Figure 2 - Organizations with high level engagement

(Dubuisson, 2020)

Above image "figure 2 - Organizations with high level engagement" showed key benefits showed key benefits that an organization get from stronger employee engagement within the organization. It shows how important employee engagement is. It proves by example from Parent & Lovelace (2015) Molson Coors Brewing organization reported multi-million-dollar safety savings through strengthening employee engagement.

Researchers have found employee engagement is a key factor for the EPS (Earning per Share) (Armstrong, 2010). In the Osborne & Hammoud (2017) have mentioned that “employee engagement matters to both the employee as well as the organization. Employees can utilize contract agreement provisions to impede the attainment of the organizational goals and objectives. Management’s capability to leverage employee engagement strategies is essential in an organization. Employee engagement creates positive moral in an organization (Sarangi & Nayak, 2016).

According to above writings, it showed that all the facts, researches have given positive signal on employee engagement. Also highlighted benefits but not drawbacks. Previous paragraph or paragraphs have shown, importance of employee engagement for both employee and organizational perspective. In the Sarangi & Nayak (2016) have mentioned “engaged employees incline to contribute more of organizational productivity. It also supports in maintaining a higher level of commitment. Employee Engagement is the level of employee’s commitment and participation towards their organization and its values. The organizational success depends on employee’s productivity which is accelerated through employee’s commitment towards his organization”. The previous statement is important when understanding the importance of employee engagement. Few sentences explained the importance of employee engagement to the organization as we as employee.

 


References

Armstrong, M., 2008. Employee engagement strategy. In: STRATEGIC HUMAN RESOURCE MANAGEMENT AGUIDE TO ACTION. London: Kogan Page Limited, p. 140.

Armstrong, M., 2008. Employee engagement strategy. In: STRATEGIC HUMAN RESOURCE MANAGEMENT A GUIDE TO ACTION. London: Kogan Page, p. 142.

Armstrong, M., 2010. Employee Engagement. In: ARMSTRONG'S ESSENTIAL HUMAN RESOURCE MANAGEMENT PRACTICE AGUIDE TO PEOPLE MANAGEMENT. London: Kogan Page Limited, p. 158.

Armstrong, M., 2010. Employee Engagement. In: ARMSTRONG'S ESSENTIAL HUMAN RESOURCE MANAGEMENT PRACTICE AGUIDE TO PEOPLE MANAGEMENT. London: Kogan Page Limited, p. 158.

Dubuisson, O., 2020. Employee Experience vs Employee Engagement | People Insight. [Online]
Available at: https://peopleinsight.co.uk/employee-experience-vs-engagement/
[Accessed 24 05 2020].

Nguyen, J., 2015. Bnefits of Engagement between Managers and Employees. [Online]
Available at: https://successinbusinessmanagement.wordpress.com/2015/10/14/benefits-of-engagement-between-managers-and-employees/
[Accessed 24 05 2020].

Osborne, S. & Hammoud, M., 2017. Effective Employee Engagement in the Workplace. International Journal of Applied Management and Technology, Volume 16(Issue 1), p. 53.

Parent, J. & Lovelace, K., 2015. The Impact of Employee Engagement and a Positive Organizational Culture on an Individual’s Ability to Adapt to Organization Change. Merrimack College Merrimack ScholarWorks Management Faculty Publications, 05.p. 8.

Sarangi, P. & Nayak, B., 2016. Employee Engagement and Its Impact on Organizational Success – A Study in Manufacturing Company, India. IOSR Journal of Business and Management (IOSR-JBM), Volume 18(Issue 4), p. 52.

Sarangi, P. & Nayak, B., 2016. Employee Engagement and Its Impact on Organizational Success – A Study in Manufacturing Company, India. IOSR Journal of Business and Management (IOSR-JBM), Volume 18(Issue 4), p. 52.

Sridevi, S. & Markos, S., 2010. Employee Engagement: The Key to Improving Performance. International Journal of Business and Management, Vol. 5(12), p. 92.