Employee Engagement: Way forward for a successful Organization

Employee Engagement: Way forward for a successful Organization 

Definition of Employee Engagement 

Employee engagement or employee relation is a two-way process where the employer and employee are responsible for the success of the organization. Employee engagement could be defined as an emotional attachment towards the organization, highly involved in the work with enthusiasm for the success of the Organization (Kompaso & Sridevi, 2010). In engagement an employee, “is going extra mile beyond the employment contractual agreement” to fulfil the assigned job, which is discretionary behaviour and part of psychological contract (Purcell et al, 2003). 

Ingredients of job engagement as per Armstrong (2010) are motivation, commitment & organizational citizenship behaviour. Therefore, employee engagement is a blend of all three ingredients. 

An engaged employee will be loyal in attitude, will go beyond their minimum expectations to complete an assignment and will be a promoter of their company to the clients. The result of the above will be lower accident rate, higher output, fewer misunderstandings, and more creativity, less staff turnover & reduced health issues (Vorina, 2017)

Employee engagement is an element of Human Resource Management “creating opportunities for employees to connect with their colleagues, managers and wider organization” (Armstrong, 2010).  Both parties have their own expectations, legal rights and responsibilities. The employees will perform their duties and task in a satisfactory manner as per organizational policies and procedures & employers in return treat them reasonably, fairly and consistently. MacLeod and Clarke (2009) describe this as mutual respect between employee and management.

As pointed out by MacLeod and Clarke (2009) engagement is like two sides of a coin where management should lay foundation to capture the heart and soul of the employee and employee in return should fulfil the organizations goals. As explained by O’Riordan (2017) HR is important to “Create a positive employment relationship between management and employees. Employees’ will give their best when they are given autonomy & empowerment(Stewart, 2012) to carry out their work independently to achieve the set KPI’s of the organization.

The importance of engagement is elaborated in IES (2003)and states that people should be treated as stake holders of an organization, ownership and empowerment plays a major role in engagement and improve company performance.  Importance of engagement was explained in service profit chain by Robinson et al (2004)  as “from People to Profit” starting from the committed line manager coupled with fair and rewarding company culture, the level of employee’s engagement increases which enhances customer satisfaction leading to higher customer spending and increased sales & profitability of the organization.

Passionate employees who are engaged are focused on achieving company’s goals at any cost, which is a key competitive advantage in the modern world (Vorina et al, 2017). Further, improved employee productivity had a positive effect on organizational financial performance (Osborne & Hammoud, 2017). The bond between leaders and employees is an essential element for engaging employees, which in turn increased organizational profitability (Osborne et al, 2017).

As per Richard Branson of Virginia Group, the employers should put “purpose and passion at the heart of their plans” further he states that employer and employee should do what they love and love what they do, which leads to self satisfaction and contributes to satisfactory business performance.

A survey was conducted by Postgraduate Institute of Management (PIM) among 12000 employees of IT, apparel sector & BPO/KPO sector in Sri Lanka. It was revealed during the survey that “Meaningfulness and the awareness of the job, supportive senior management and supportive co-worker relationship are the factors that drive employee engagement”(Daily FT, 2017)

Evolution of employee engagement

This concept evolved from industrial relations (unitarism) to employee relations (Pluralism). In unitarist approach the employer considered their employees to share the same concerns and interests (collective orientation) which lead to formation of trade unions and industrial revelation in the past. With that the employers realized that individualized relationship with employees is important for the success of a business (Millmore et al, 2007).

The short Film - Engage for Success explains how employee engagement help organisations to be successful business entities.

Factors affecting employee engagement

                           

1. Effective Communication and feedback

Effective communication plays a significant role in employee engagement (Osborne et al, 2017). A two-way communication between the employer and employee is important (IQN, 2017). Employer should clearly communicate their expectations, organizational goals and targets to their employees and employees in return should be given a chance to report their grievances and concerns. This employee voice to be heard by the management and this makes the organization “an employer of choice” (Armstrong, 2010). Organizations should look for leaders that can both communicate the organization’s vision and secure employees’ support in achieving organizational goals (Osborne et al, 2017) and employees to be given a chance to open up without any repercussions. The best way to gain employee views are the anonymous surveys in which people feel completely safe to speak their minds. Its proven that majority of people open up, and ideas come out at informal meetings or gatherings (Kompaso & Sridevi, 2010)

Feedback is a great way of creating a learning environment, when feedback is extended by a genuine leader who truly cares about employees. The time the employees realize the leader truly cares about them, they starts respecting the leader and will listen and obey. Further, will be ready to hear any feedback extended since staff realizes the intention is for their own good and the success of the organization (Cook, 2015). Therefore, managers should use every opportunity for gathering feedback without waiting for the annual appraisal (Walker, 2012). Management needs to create a feedback culture and the leaders to invite feedback from others on their performance, their behaviour and its impact on others(Cook, 2015). As per MacLeod and Clarke (2009) Tesco Chief Executive Terry Leahy has recorded his reaction when he realized that the company knew more about its customers than it did about its employees, and laid foundation to learn about their employee’s strengths and needs which motivated staff to give their best to the organization.

2. Engagement at the time of recruitment

Ideally Engagement must start at the time of recruitment, when calling for candidates for a particular job, the advertisements must outline the attractive features such as challenging work assignments, highly skilled team environment, and minimal supervision. Applicants will be motivated by these features and act in response. At the interview the management should communicate the role and the expectations clearly and not keep space for ambiguities. The candidate should be encouraged to communicate their concerns and raise queries and management in return to be flexible in order to suite each and every requirement of the employee. A women candidate could be single parent etc, where flexible working hours, family health benefits and onsite day care centre to be introduced and encourage work life balance for a sustainable and a long lasting relationship. Further in selecting the right individual for the right job with few performance problems (Vance, 2006) Recruit candidates who are willing to be engaged which increase engagement and organizational performance. As CEO of the UK’s Happy Pvt Ltd, which had been awarded by the Great Place to Work Institute writes, recruite for the candidates attitude and then train for skills (Stewart, 2012).

3. Training and Development 

Management further needs to spend on Training and Development to their recruited employees, in order to understand the job, acquire knowledge and development of skills which will benefit the employee to perform the job with minimum supervision and without mistakes. An employee with adequate knowledge, skill, and experience become experts in their field and enhance the self esteem and increases the engagement level (Armstrong & Taylor, 2014) However, “Organizations should not embark on an attempt to raise engagement levels unless they are prepared to invest sufficiently into it — time, effort and money.” (Robinson et al, 2004) The training to be extended to line managers as well, they should be fully equipped to engage the employees for a mutually beneficial relationship for organization and the employee. The line managers must provide positive response to employees, improving relationship between leaders and employees and employees feel valuable & worthwhile. The leader should communicate differently with each employee since they come from different background (Osborne et al, 2017). “The importance of the line manager in the engagement model, for example, suggests that a major investment in line management development might be needed” (Robinson et al, 2004). The reseach done on people who leaves organizations have proved that people leave organizationa not for better propects but due to ineffective managers (Walker, 2012).  

4. Reward Structure

Reward & Compensation plays a major role in employee engagement. It could be either financial reward such as salary, bonus, incentives and travel allowance and non-financial benefits such as on-site day care, employee assistance programs, subsidized cafeteria, company picnics, company gymnasium facilities & promotions. As pointed out by Millmore et al, (2007) “The rewards from employment can be economic, social and psychological”. A performance management system could be utilized for rewarding high performing employees with higher salary increments and bonuses to encourage them to be more engaged (Vance 2006). The management must include in the appraisal the training requirements of the employees and line managers to indicate that they truly care to sit down and discuss about employee’s future aspirations and their further development needs. Further, as per Osborne et al, 2017 “Leaders of organizations that fully support employees, promote continuous learning, and are transparent in their decision-making, have a greater impact on the increased level of employee engagement”.

5. Employment security                                                                                                      

Employment security is another factor which enhances employee engagement levels. Healthy and a safe working environment will improve quality of life enhancing employee engagement. Work places should provide infrastructure to maintain healthy and a fully engaged workforce. They could provide health insurance, wellness programs, gym & yoga facilities to address the increasing health issues faced by the employees. As Scott, 2017 states “today’s active workforce has become increasingly affected by “lifestyle diseases,” such as heart disease, type 2 diabetes, obesity and these types of diseases forcing employers to adopt strategies that address the effects on employee health and well-being, engagement, and overall performance.”

The organization which I work for is a leading commercial bank and it provides the following facilities for the benefit of its staff & in order to engage them for better performance of the Bank. The management organized a series of health camps from beginning of last year onwards, opened up the reimbursement of annual medical heath check-up expenses to all staff above 40 years of age, irrespective of the rank which once only availed to executive staff. Even the spouse is entitled for and this is apart from the Hospitalization Medical Scheme available to staff members of the bank.   Further, an innovative competition was organized by the name of “Lose to Win” and the staff were grouped and over a period of time the group which lost maximum weight were awarded. In addition, Online training courses as well as class room training sessions are conducted to continuously improve the knowledge and to motivate the employees. Increments and bonuses are being decided on an online performance appraisals system and the percentage increase is decided by the score at the end of the appraisal. A concept of Chief Employee Relations Officer was introduced for the members to approach in grievances and problems. Therefore, enabling employees to report direct to CERO independent from HR. CERO appointed was a very senior member of the corporate management whom employees trust & respect. These changes were brought in after an employment survey conducted by an external company during a period of employee unrest.

Conclusion 

In conclusion it is obvious that higher levels of employee engagement “improve the customer satisfaction, productivity, and profit levels”(Osborne et al, 2017). Engagement is further elaborated by Millmore et al, 2007 as a tool for innovation, quality enhancement and a cost reduction which enhances competitive advantage. Therefore it is evident that Management must treat employees as “special and most important assets and they are the source of continuing competitive advantage"(Henderson, 2011) Therefore, it is evident that there is a correlation between the employee engagement and the satisfactory performance of an organization.

As revealed by Gallup (2006a) “out of a survey of 23,910 business units and comparing top quartile and bottom quartile financial performance with engagement scores, Gallup found that, those with engagement scores in the bottom quartile averaged 31–51 per cent more employee turnover, 51 per cent more inventory shrinkage and 62 per cent more accidents and those with engagement scores in the top quartile averaged 12 per cent higher customer advocacy, 18 per cent higher productivity and 12 per cent higher profitability.” Cook, 2015 reveals as per surveys carried out on engagement, “five per cent increase in total employee engagement correlates to a 0.7 per cent increase in operating margin and highly engaged employees were 87 per cent less likely to leave their companies than their disengaged colleagues. In 2008 onwards US experienced a financial meltdown due to disengaged employees, in turn affected the organizations financial performance and finally country’s financial performance (Purcell, 2014).

List of References

Armstrong, M (2010) Armstrong's Essential Human Resource Practice: A Guide to People Management

Armstrong, M. & Taylor, S. (2014). Armstrong’s Handbook of Human Resource Management & Practice. 13th ed. London: Koganpage.

Branson, R.  The best way to engage employees (Accessed online on 08/12/2018)   https://www.virgin.com/entrepreneur/richard-branson-best-way-engage-employees

Cook, S.(2015) Training Journal. Sarah Cook looks at the role in people developers have in improving employee engagement. https://www.trainingjournal.com/articles/feature/leading-engagement. (Accessed online on 07/12/2018). 

Dharmasiri, A. (Daily FT, 02/10/2017) Engaging Employees for Enterprise Effectiveness: Emerging evidence from Sri Lanka. http://www.ft.lk/columns/Engaging-employees-for-enterprise-effectiveness--Emerging-evidence-from-Sri-Lanka/4-640687. (Accessed on line on 05^/12/2018).

Engage for success – Short Film accessed on line on 08/12/2018 by Chartered Management Institute.

https://www.youtube.com/channel/UCV4YcgVIKneaq9di4afoLYw

Gallup (2006a) Feeling Good Matters in the Workplace, Gallup Inc, London.

IQN, ( 2017) Diploma in Human Resource Management Course Book by International Qualifications Network

Ivan Henderson, Human Resource Management for MBA Students 2^nd edition, Published by CIPD 2011

Kompaso, S. M.&Sridevi, M. S.(2010) (Accessed online on 08/12/2018)   https://www.researchgate.net/publication/49586552_Employee_Engagement_The_Key_to_Improving_Performance.

MacLeod, D and Clarke, N (2009) Engaging for success: Enhancing performance through employee engagement, Department for Business, Innovation and Skills, London.

Millmore, M., Lewis P., Sanders M., Thornhill A., Morrow T. Strategic Human Resource Management - Contemporary issue 2007. Published by Pearson Education Limited.

Osborne, S. & Hammoud M., S. ( 2017)Effective Employee Engagement in the Workplace , International Journal of Applied Management and Technology  2017, Volume 16, Issue 1, Pages 50–67

Purcell, J.,Kinnie, N., Hutchinson, S., Rayton, B. & Swart,J. (2003) Understanding the People and Performance Link: Unlocking the Black Box: London, Chartered Institute of Personal and Development.

Robinson, D., Perryman, S., Hayday, S. (2004) The Drivers of Employee Engagement.  Institute of Employee Studies. IES report 408.

Vance, R., J. (2006) Employee engagement & commitment: A Guide to understanding, measuring and increasing engagement in your organization (SHRM Foundation).

Vorina, A., Simonic, M., Vlasova, M. (2017) Economic Themes – An Analysis of the relationship between Job Satisfaction & employee engagement (p. 245)

Scott, A. (2017)Today’ key to improving employee performance-Workplace  Wellness. http://p5performance.org/todays-key-improving-performance-workplace-wellness(online accessed on 08/12/2108)

Stewart, H. (2012) The Happy Manifesto – Make Your Organization a Great Place to Work-Now (Foreword by professor Julion Birkshaw of London Business School)

Walker, S (2012) Employee Enagagement & Communication Research- Measurement Stratergy & Action.