4. Benefits of employee engagement
An elevated engagement is beneficial for both organization and employee. Various researches have highlighted that directive and positive performance of employees is influenced by the rewards lead to job satisfaction. In order to improve an organization’s effectiveness, rewards are one of the most efficient tools of management when trying to influence individual or group behaviour. (Ovidiu-Iliuta, 2013). Kahn (1990) stated that employee motivators such as advancement opportunities provide employees’ psychological safety that makes them more motivated towards their work. Likewise, for an organization engagement is a powerful influence towards the performance, driving bottom‐line profit and enabling organisational agility and improved efficiency in driving change initiatives (IES, 2009). Gallup (2018) claims that “High employee engagement directly impacts a business's economic health. Gallup findings indicate that when compared to less engaged businesses, highly engaged business units experience 41% fewer instances of absenteeism. Lower absenteeism rates increase productivity, boost morale, and improve revenue.” In particular, accounting benefits of employee engagement are: reduced mistakes lower the costs and higher profits (Amanda, 2016).
Employee engagement process can be demonstrated by the organizations survey as well. The following example is from Solvay; the Group target is by 2025 to have an engagement index of 80%. This index is used as a yardstick to decide which actions are needed. Initiatives and processes are to cultivate the engagement and well-being of its employees, including: personal development, reward & recognition, inclusive culture and work-life balance (Solvay Annual Integrated Report, 2016).
SAP Success Factors
(Source: successfactors.com/workforce2020,2015)
Reference
Amanda, C. (2016). Accounting Training, Tips, and News [Accounting Blog]
available at: <https://www.patriotsoftware.com/accounting/training/blog/accounting-benefits-of-employee-engagement/?utm_source=FRB45&utm_medium=article&utm_campaign=GBL&utm_content=employee_engagement> [Accessed on
14th November 2018].
Gallup, (2018). What Gallup has to say about employee
engagement. Available at < https://blog.bernieportal.com/what-gallup-has-to-say-about-employee-engagement >. [Accessed
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Institute for employment studies (IES), (2004). The Drivers of Employee
Engagement [Online]. Available at < https://www.employment-studies.co.uk/system/files/resources/files/408.pdf >. [Accessed on
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Kahn, W. A. (1990). Psychological conditions of personal engagement and
disengagement at work. Academy of management journal, 33(4), pp.692-724.
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Osabiya, B. (2015). The effect of employees’ motivation on
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Solvay Annual Integrated Report, 2016. Note s9 employee engagement and
wellness management. [Online] Available at <http://annualreports.solvay.com/2016/en/extra-financial-statements/notes-to-the-extra-financial-statements/note-s9-employee-engagement-and-wellness-management.html> [Accessed on 7th December
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In addition to what you have mentioned in article, I would like to add, traditional organizations relied financial measure or hard numbers to evaluate their performance, with profitability revenue and cash flow. But employee attitudes and perceptions are also now recognize as important factor for organization growth (Fred Luthans, Suzanne J. Peterson,2002).
ReplyDeleteHi Aravindth, yes and also higher management and other financial workers put their priority on financial factors to accomplish organization performance dealing with gain and accounting returns, calculating financial benefits from project operations (Kazimoto, 2016).
DeleteArmstrong & Brown (2006) stated When the psychological contract of the employee is disturbed, the employee engagement drops or declines. Coleman III (2017) further described that If the employees in an organization are not committed to their jobs, the employee engagement lessen.
ReplyDeletePsychological contract and job engagement is are two import factors of management and organizational behaviour. Accordingly, managers are taught how to create motivation among employees so that they have more feelings regarding their own organizations and employers and accept more obligations and interim, grant the organization to remain in the scene of competition (Heshmati & Jed, 2015).
DeleteLine Managers should espoused to enhance engagement in order to improve organizational performance (Khan, 2016). Perceiving the strengths and weaknesses of an individual as well as continuous feedback are the major concerns of a line manager for a higher degree of employee engagement (Alfes, Shantz, Truss, & Soane, 2013). Further the individuals should be given about their ownership and creation of the outcome (Kramer, 2010).
ReplyDelete“Employee engagement as having a positive influence on organisational performance, stating that the more engaged employees are, the better the organisation performs and has a positive influence on performance outcomes such as productivity, profitability, employee retention, safety and customer loyalty” (Pillay, Singh, 2018).
DeleteChartered Management Institute 2015 defines Employee engagement as “a workplace approach designed to ensure that employees are committed to their organisation’s goals
ReplyDeleteand values, motivated to contribute to organisational success, and are able at the same time to
enhance their own sense of well-being.”
Kahn (1990) explain engagement as “use varying degrees of their selves – physically, cognitively and emotionally in work role performances”.
DeleteThe newest investigates confirmed the well-known connection among employee engagement and main performance results such as productivity, customer rankings, profitability, revenue (for high-turnover and low-turnover organizations), safety incidents, shrinkage (theft), attendance, patient safety incidents and quality (Reilly, 2014).
ReplyDeleteCorrect,and also employee empowerment increase organizational creativity and inattentiveness at the same time. However, this depends on having a common point of view of management and other employees in the point of expected result and benefits. (Celik, 2014).
DeleteWonderful blog! Employee engagement is an opportunity for every employee to gather around a big table with colleagues. Due to the current situation, we can't organize these employee engagement events in person. Online employee engagement activities make it possible to connect with remote team employees around the world.
ReplyDeleteEngaging employees is essential for retaining valuable talent and for employee satisfaction. An employee engagement company, help corporates and other organizations to engage their employees in a fun and innovative manner. These fun ideas also help in the employee's team-building process.
ReplyDelete