Employee Engagement
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share

Employee Engagement

  • 1,124 views
Uploaded on

Employee engagement is the level of commitment and involvement an employee has towards their organization and its values.

Employee engagement is the level of commitment and involvement an employee has towards their organization and its values.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
1,124
On Slideshare
1,121
From Embeds
3
Number of Embeds
2

Actions

Shares
Downloads
35
Comments
0
Likes
0

Embeds 3

http://www.linkedin.com 2
https://www.linkedin.com 1

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Employee EngagementEmployee engagement is the level of commitment and involvement an employeehas towards their organization and its values. Employee engagement, alsocalled worker engagement, is a business management concept. An "engagedemployee" is one who is fully involved in, and enthusiastic about their work,and thus will act in a way that furthers their organizations interests.“Employee Engagement is a measurable degree of an employees positiveor negative emotional attachment to their job, colleagues andorganization that profoundly influences their willingness to learn andperform at work". -According to Scarlett SurveysOriginsEmployee engagement was described in the academic literature by Schmidt etal. (1993). A modernized version of job satisfaction, Schmidt et al.s influentialdefinition of engagement was"An employees involvement with, commitment to, and satisfaction with work.Employee engagement is a part of employee retention".This integrates the classic constructs of job satisfaction (Smith et al., 1969)and organizational commitment (Meyer & Allen, 1991). Harter and Schmidts
  • 2. (2003) most recent meta-analysis can be useful for understanding the impactof engagement.Engagement is most closely associated with the existing construction of jobinvolvement (Brown 1996) and flow (Csikszentmihalyi, 1990). Job involvementis defined as ‘the degree to which the job situation is central to the person andhis or her identity (Lawler & Hall, 1970). Kanungo (1982) mentioned that jobinvolvement is a ‘Cognitive or belief state of Psychological identification.Research StudiesEngaged employees care about the future of the company and are willing toinvest discretionary effort. Engaged employees feel a strong emotional bond tothe organization that employs them (Robinson), which results in higherretention levels and productivity levels and lower absenteeism. When reliablymeasured, positive employee engagement can be causally related or correlatedto specific positive business outcomes by workgroup and job type.Scarlett Surveys refers to these statistical relationships as ‘Engageonomics’. Δ Emotional attachmentOnly 31% of employees are actively engaged in their jobs. These employeeswork with passion and feel a profound connection to their company. Peoplethat are actively engaged help move the organization forward. 88% of highlyengaged employees believe they can positively impact quality of theirorganizations products, compared with only 38% of the disengaged. 72% ofhighly engaged employees believe they can positively affect customer service,
  • 3. versus 27% of the disengaged. 68% of highly engaged employees believe theycan positively impact costs in their job or unit, compared with just 19% of thedisengaged. Engaged employees feel a strong emotional bond to theorganization that employs them. This is associated with people demonstratinga willingness to recommend the organization to others and commit time andeffort to help the organization succeed. It suggests that people are motivated byintrinsic factors (e.g. personal growth, working to a common purpose, beingpart of a larger process) rather than simply focusing on extrinsic factors (e.g.,pay/reward). Δ InvolvementEileen Appelbaum and her colleagues (2000) studied 15 steel mills, 17 apparelmanufacturers, and 10 electronic instrument and imaging equipmentproducers. Their purpose was to compare traditional production systems withflexible high-performance production systems involving teams, training, andincentive pay systems.In all three industries,The plants utilizing high-involvement practices showed superior performance.In addition, workers in the high-involvement plants showed more positiveattitudes, including trust, organizational commitment and intrinsic enjoymentof the work. The concept has gained popularity as various studies havedemonstrated links with productivity. It is often linked to the notion ofemployee voice and empowerment. Δ CommitmentIt has been routinely found that employee engagement scores account for asmuch as half of the variance in customer satisfaction scores. This translatesinto millions of dollars for companies if they can improve their scores. Studies
  • 4. have statistically demonstrated that engaged employees are more productive,more profitable, more customer-focused, safer, and less likely to leave theiremployer.Employees with the highest level of commitment perform 20% better and are87% less likely to leave the organization, which indicates that engagement islinked to organizational performance. For example, at the beverage company ofMolsonCoors, it was found that engaged employees were five times less likelythan non-engaged employees to have a safety incident and seven times lesslikely to have a lost-time safety incident. In fact, the average cost of a safetyincident for an engaged employee was $63, compared with an average of $392for a non-engaged employee. Consequently, through strengthening employeeengagement, the company saved $1,721,760 in safety costs in 2002. Inaddition, savings were found in sales performance teams through engagement.In 2005, for example, low-engagement teams were seen falling behind engagedteams, with a difference in performance-related costs of low- versus high-engagement teams totaling $2,104,823.3 (Lockwood). Δ ProductivityIn a study of professional service firms, the Hay Group found that offices withengaged employees were up to 43% more productive.The most striking finding is the almost 52% gaps in operating incomes betweencompanies with highly engaged employees and companies whose employeeshave low-engagement scores. High-engagement companies improved 19.2%while low-engagement companies declined 32.7% in operating income duringthe study period. For example, New Century Financial Corporation, a U.S.specialty mortgage banking company, found that account executives in thewholesale division who were actively disengaged produced 28% less revenuethan their colleagues who were engaged. Furthermore, those not engagedgenerated 23% less revenue than their engaged counterparts. Engaged
  • 5. employees also outperformed the not engaged and actively disengagedemployees in other divisions.Aspects of Employee EngagementThree basic aspects of employee engagement according to the global studiesare:- The employees and their own unique psychological makeup and experience The employers and their ability to create the conditions that promote employee engagement Interaction between employees at all levels.Thus it is largely the organization’s responsibility to create an environment andculture conducive to this partnership, and a win-win equation.Categories of Employee EngagementAccording to the Gallup the Consulting organization there are there aredifferent types of people:- Engaged--"Engaged" employees are builders. They want to know the desired expectations for their role so they can meet and exceed them. Theyre naturally curious about their company and their place in it. They
  • 6. perform at consistently high levels. They want to use their talents and strengths at work every day. They work with passion and they drive innovation and move their organization forward. Not Engaged---Not-engaged employees tend to concentrate on tasks rather than the goals and outcomes they are expected to accomplish. They want to be told what to do just so they can do it and say they have finished. They focus on accomplishing tasks vs. achieving an outcome. Employees who are not-engaged tend to feel their contributions are being overlooked, and their potential is not being tapped. They often feel this way because they dont have productive relationships with their managers or with their coworkers. Actively Disengaged--The "actively disengaged" employees are the "cave dwellers." They are "Consistently against Virtually Everything". They are not just unhappy at work; theyre busy acting out their unhappiness .They sow seeds of negativity at every opportunity. Every day, actively disengaged workers undermine what their engaged coworkers accomplish. As workers increasingly rely on each other to generate products and services, the problems and tensions that are fostered by actively disengaged workers can cause great damage to an organizations execution.Drivers of EngagementWhile it is possible to measure engagement itself through employee surveys,this does not assist in identifying areas for improvement within organizations.There are a range of factors, known as drivers, that are thought to increase
  • 7. overall engagement. By managing the drivers, an organisation can effectivelymanage engagement levels of its employees.Drivers such as communication, performance clarity and feedback,organizational culture, rewards and recognition, relationships with managersand peers, career development opportunities and knowledge of theorganizations goals and vision are some of the factors that facilitate employeeengagement. Some points from the research are presented below:* Employee perceptions of job importance - According to a 2006 study byGerard Seijts and Dan Crim, "...an employees attitude toward the jobsimportance and the company had the greatest impact on loyalty and customerservice than all other employee factors combined”.* Employee clarity of job expectations - "If expectations are not clear andbasic materials and equipment are not provided, negative emotions such asboredom or resentment may result, and the employee may then becomefocused on surviving more than thinking about how he can help theorganization succeed”.* Career advancement/improvement opportunities - "Plant supervisors andmanagers indicated that many plant improvements were being made outsidethe suggestion system, where employees initiated changes in order to reap thebonuses generated by the subsequent cost savings”.* Regular feedback and dialogue with superiors - "Feedback is the key togiving employees a sense of where they’re going, but many organizations areremarkably bad at giving it”. What I really wanted to hear was Thanks. Youdid a good job. But all my boss did was hand me a check’.* Quality of working relationships with peers, superiors, and subordinates- "...if employees relationship with their managers is fractured, then noamount of perks will persuade the employees to perform at top levels.
  • 8. Employee engagement is a direct reflection of how employees feel about theirrelationship with the boss”.* Perceptions of the ethos and values of the organization - "Inspiration andvalues is the most important of the six drivers in our Engaged Performancemodel. Inspirational leadership is the ultimate perk. In its absence, [it] isunlikely to engage employees”.* Effective Internal Employee Communications - which convey a cleardescription of "whats going on". "If you accept that employees want to beinvolved in what they are doing then this trend is clear (from small businessesto large global organizations). The effect of poor internal communications isseen as its most destructive in global organizations which suffer from employeeannexation - where the head office in one country is buoyant (since they areclosest to the action, know what is going on, and are heavily engaged) but itsannexes (who are furthest away from the action and know little about what ishappening) are dis-engaged. In the worst case, employee annexation can bevery destructive when the head office attributes the annexs low engagement toits poor performance… when its poor performance is really due to its poorcommunications.* Reward to engage - Look at employee benefits and acknowledge the role ofincentives. "An incentive to reward good work is a tried and test way ofboosting staff morale and enhancing engagement." There are a range of tacticsyou can employ to ensure your incentive scheme hits the mark with yourworkforce such as: Setting realistic targets, selecting the right rewards for yourincentive programme, communicating the scheme effectively and frequently,have lots of winners and reward all achievers, encouraging sustained effort,present awards publicly and evaluate the incentive scheme regularly.
  • 9. Studies have shown that there are some critical factors which lead toEmployee engagement. Some of them identified areCareer Development- Opportunities for Personal DevelopmentOrganizations with high levels of engagement provide employees withopportunities to develop their abilities, learn new skills, acquire new knowledgeand realize their potential. When companies plan for the career paths of theiremployees and invest in them in this way their people invest in them.Career Development – Effective Management of TalentCareer development influences engagement for employees and retaining themost talented employees and providing opportunities for personal development.Leadership- Clarity of Company ValuesEmployees need to feel that the core values for which their companies standare unambiguous and clear.Leadership – Respectful Treatment of EmployeesSuccessful organizations show respect for each employee’s qualities andcontribution – regardless of their job level.Leadership – Company’s Standards of Ethical BehaviorA company’s ethical standards also lead to engagement of an individualEmpowermentEmployees want to be involved in decisions that affect their work. The leadersof high engagement workplaces create a trustful and challenging environment,in which employees are encouraged to dissent from the prevailing orthodoxyand to input and innovate to move the organization forward.Image
  • 10. How much employees are prepared to endorse the products and services whichtheir company provides its customers depends largely on their perceptions ofthe quality of those goods and services. High levels of employee engagement areinextricably linked with high levels of customer engagement.Other factorsEqual Opportunities and Fair TreatmentThe employee engagement levels would be high if their bosses (superiors)provide equal opportunities for growth and advancement to all the employeesPerformance appraisalFair evaluation of an employee’s performance is an important criterion fordetermining the level of employee engagement. The company which follows anappropriate performance appraisal technique (which is transparent and notbiased) will have high levels of employee engagement.Pay and BenefitsThe company should have a proper pay system so that the employees aremotivated to work in the organization. In order to boost his engagement levelsthe employees should also be provided with certain benefits andcompensations.Health and SafetyResearch indicates that the engagement levels are low if the employee does notfeel secure while working. Therefore every organization should adoptappropriate methods and systems for the health and safety of their employees.Job SatisfactionOnly a satisfied employee can become an engaged employee. Therefore it is veryessential for an organization to see to it that the job given to the employee
  • 11. matches his career goals which will make him enjoy his work and he wouldultimately be satisfied with his job.CommunicationThe company should follow the open door policy. There should be both upwardand downward communication with the use of appropriate communicationchannels in the organization. If the employee is given a say in the decisionmaking and has the right to be heard by his boss than the engagement levelsare likely to be high.Family FriendlinessA person’s family life influences his wok life. When an employee realizes thatthe organization is considering his family’s benefits also, he will have anemotional attachment with the organization which leads to engagementCo-operationIf the entire organization works together by helping each other i.e. all theemployees as well as the supervisors co-ordinate well then only employees willbe engaged.An organization’s capacity to manage employee engagement is closely related toits ability to achieve high performance levels and superior business results.Some of the advantages of Engaged employees are ☺ Engaged employees will stay with the company, be an advocate of the company and its products and services, and contribute to bottom line business success. ☺ They will normally perform better and are more motivated.
  • 12. ☺ There is a significant link between employee engagement and profitability.☺ They form an emotional connection with the company. This impacts their attitude towards the company’s clients, and thereby improves customer satisfaction and service levels☺ It builds passion, commitment and alignment with the organization’s strategies and goals☺ Increases employees’ trust in the organization☺ Creates a sense of loyalty in a competitive environment☺ Provides a high-energy working environment☺ Boosts business growth☺ Makes the employees effective brand ambassadors for the company Name Jay Kumar E-Mail jaymba9@gmail.com Linkedin jaymba9@gmail.com Facebook Jaymba9@gmail.com Mobile 809 666 5156