Outcomes of employee engagement

Employee engagement can be seen when employees give full effort to the work, commitment with optimum moral and motivation to achieve goals (Armstrong, 2010). When employee is engaged with organizational activities, the organization will have lots of benefits. Low employee engagement is a cost for the organization. According to the researches have shown that low employee engagement costs the US economy $370 billion per year (Parent & Lovelace, 2015). Engaged employees help to increase productivity of an organization/s. Commitment of an employee is very important to make employee an engaged employee in the organization (Sarangi & Nayak, 2016).

Employee engagement directly or indirectly impacted to the customer satisfaction, innovation, profitability, productivity, loyalty and quality (Siddhanta & Roy, 2010). High level of employee engagement will result: high level of employee attendance, employees remain with the organization, increase of employee productivity, increase employee effort, high quality of work, less mistakes, hike in sales, higher profits, higher earnings per share, shareholder satisfaction, enhance customer satisfaction, loyalty, rapid business growth and high hopes on business success (ARMSTRONG & TAYLOR, 2014).    

Figure 1 - Research Model: Individual Factors of Employee Engagement and Work Outcomes

(Andrew & Sofian, 2012)

In figure 1 shows individual factors of employee engagement and work outcomes. Individual factors show that how employee work productive increases through some key factors like employee communication, employee development and co-employee support. Figure 1 shows two types of engagement as: job engagement and organization engagement. Also figure 1 elaborate work outcomes as: job satisfaction, organization commitment, intention to quit and organizational citizenship behavior. According to ARMSTRONG & TAYLOR (2014) asserted that engaged employees perform better, are more innovative than others, are more likely to want to stay with their employers, enjoy greater levels of personal well-being and perceive their workload to be more sustainable than others.

Improving employee engagement and improving productivity of organization is two different things. But organizations with higher level of employee engagement will have 22% of productivity (Baldoni, 2013). Employee engagement is key to success for the organizations. Organization outcomes through employee engagement can list as: high profits and productivity, improved quality, customer loyalty, financial success, employee performance, commitment and motivation, employee retention, organizational culture and manager self-efficiency (Patro, 2013). From Robertson-Smith & Markwick (2009) Engagement and investment of the self into one’s work may lead to mindfulness, intrinsic motivation, creativity, authenticity, non‐defensive communication, playfulness, ethical behavior, increased effort and involvement and overall a more productive and happier employee. Companies invest lot on employee engagement. The company investment for employee engagement increase due to the high value of important business outcomes (Markos & Sandhya , 2010). From (Baldoni, 2013) for example, top-quartile firms have lower absenteeism and turnover. Specifically, high-turnover organizations report 25% lower turnover, and low-turnover organizations report 65% lower turnover. Engagement also improves quality of work and health.    

ARMSTRONG & TAYLOR (2014) engaged employees perform better, are more innovative than disengaged employees, are more likely to want to stay with their employers, enjoy greater levels of personal well-being and perceive their workload to be more sustainable than others. Engaged employees are more active with job duties, healthier and performance are better than disengaged employees. By comparing engaged and disengaged employees, engaged employees having more positive factors than disengaged employees. Engaged employees are satisfied with the job, committed to organization and engaged employees hardly leave the organization (Sun & Bunchapattanasakda , 2019). Patro  (2013) employee engagement predicts the employee outcomes, organizational success, and financial performance. The impact of engagement or disengagement can manifest itself through productivity and organizational performance, outcomes for customers of the organization, employee retention rates and organizational culture. Outcomes of the employee engagement can be identified as two different sets, such as organizational performance and individual performance. Financial performance of the organization, customers satisfaction, organization’s service climate and return to shareholders are identified as organizational outcomes/organizational performance. Employee profit, employee turnover, more overtime, employee performance, more satisfactions from work, higher organizational commitment, less willingness to leave, positive behavior, organizational citizenship behavior, more active in work, better health, better performance and employee’s out of role performance are identified as individual performance (Sun & Bunchapattanasakda, 2019).

Employee engagement outcomes have been mentioned in above, according to different sources. Most of the sources given similar kind of employee engagement outcomes. According to above mentioned statements it showed the value of employee engagement outcomes. Most of the sources it elaborates employee engagement outcomes in two ways, such as organizational outcomes or individual performance. Having engaged employees will give above mentioned outcomes. It will impact organization in many ways as explained in previous paragraphs. It proves that better organizations have high number of engaged employees.     

References

Andrew, O. & Sofian, S., 2012. Individual Factors and Work Outcomes of Employee Engagement. The 2012 International Conference on Asia Pacific Business Innovation & Technology Management, Pattaya, Thailand , p. 501.

Armstrong, M., 2010. Employee Engagement. In: ARMSTRONG'S ESSENTIAL HUMAN RESOURCE MANAGEMENT ORACTICE. London: Kogan Page Limited, p. 165.

ARMSTRONG, M. & TAYLOR, S., 2014. In: ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE. lONDON: Kogan Page Limited, p. 197.

ARMSTRONG, M. & TAYLOR, S., 2014. Employee engagement. In: ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE. London: Kogan Page Limited, p. 197.

ARMSTRONG, M. & TAYLOR, S., 2014. Employee Engagement. In: ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE. London: Kogan Page Limited, p. 197.

Baldoni, J., 2013. Employee Engagement Does More than Boost Productivity. [Online]
Available at: https://hbr.org/2013/07/employee-engagement-does-more#:~:text=Improving%20employee%20engagement%20is%20not,conducted%20by%20the%20Gallup%20Organization.
[Accessed 04 07 2020].

Baldoni, J., 2013. Employee Engagement Does More than Boost Productivity. [Online]
Available at: https://hbr.org/2013/07/employee-engagement-does-more
[Accessed 28 06 2020].

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

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. p. 7.

Patro, C., 2013. Organisational Outcomes Of Employee Engagement. In: The Impact of Employee Engagement on Organization’s Productivity. s.l.:s.n., p. 6.

Patro, C., 2013. Organisational Outcomes Of Employee Engagement:. In: The Impact of Employee Engagement on Organization's Productivity. Visakhapatnam: s.n., p. 6.

Robertson-Smith, G. & Markwick, C., 2009. Employee Engagement A review of current thinking , Brighton: INSTITUTE FOR EMPLOYMENT STUDIES.

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.

Siddhanta, A. & Roy, D., 2010. Employee engagement ­ Engaging the 21st century workforce. ASIAN JOURNAL OF MANAGEMENT RESEARCH, p. 170.

Sun, L. & Bunchapattanasakda , C., 2019. Employee Engagement: A Literature Review. International Journal of Human Resource Studies, Volume 9(Issue 1), p. 73.

Sun, L. & Bunchapattanasakda, C., 2019. Employee Engagement: A Literature Review. International Journal of Human Resource Studies, Volume 9(Issue 1), p. 74.