08. Benefits of Employee Engagement
Johnson and Johnson defined Employee Engagement as ‘the degree to which employees are satisfied with their jobs, feel valued, and experience collaboration and trust. The end result is a high performing company where people are flourishing and productivity is increased and sustained’. (Catteeuw et al., 2007 p. 152). Further the University of York suggests that ‘employee engagement is a combination of commitment to the organization and its values plus a willingness to help out colleagues …. Employee Engagement goes beyond job satisfaction and is not simply motivation’ (University of York, 2008).
The definitions given by the scholars and HR expertise about Employee Engagement , can be summarized as “emotional relationship between employee and organization”. There are many benefits. ‘It’s well known that employees’ attitudes toward the organization have a significant effect on how they approach their jobs and how they treat customers. But recent research also suggests that high levels of employee engagement is associated with higher rates of profitability growth. (Kumar& Pansari, 2015)’.Further they specified many benefits of employee engagement.
1: Increases Productivity
Gallup 2017. revealed that connected teams are 21% more productive. Like all other companies, making employees productive must be your end goal too. So, engaging employees can be your first step to create a productive workforce.
2: Improves Retention Rates
Research by Gallup in 2017 showed that 51% of employees are planning to leave their current jobs. Therefor employee engagement will provide the emotional relation with the organization and it will reduce the cost of turnover and improves retention.
3: Increases Revenue
Global engagement report (2018) shows interesting results. It shows that every 5 point increase in engagement level leads to a 3% increase in revenue. When employee feels they are correctly engage they will increase their productivity which increase the revenue of the company.
4: Lowers Absenteeism
When organization consist with positive employee engagement it will create very good organizational culture, relationship and work life balance. This type of culture will lower the absenteeism and high turnover.
5: Better Quality of work
Employees who feel engaged always put in their best while doing their job. These employees are much more motivated than others and do each task with the same amount of dedication and precision.
6: Employees are Innovative
These enthusiastic employees are at their best when engaged. They continuously come up with new, dynamic ideas which can help build the company’s image. Since they are so involved with their work, they always find new ways to make work enjoyable.
7: Cost saving
We all know that hiring new employees costs time and money. A study by Deloitte says, “the cost of losing an employee can range from tens of thousands of dollars to 1.5-2x their annual salary.” This works in two ways. When employees leave a company, the cost of hiring and training a new employee is high. Another situation is when an existing employee does his work reluctantly but still takes the fat paycheck.
Reference List
- Catteeuw F, Flynn E, Vonderhorst J (2007), ʹEmployee engagement: boosting productivity in turbulent timesʹ, Organization Development Journal, 25 (2), 151– 157.
- Dutta, S.(2016), 14 Benefits of Employee Engagement that Work (vantagecircle.com) (online),Available at https://vantagecircle.com , Accessed on 30th August 2021.
- Gallup (2017), Gallup: US employee engagement,(online), Available at http:// news.gallup.com/poll/214961/gallup-employee-engagement.aspx ,Accessed on 31st August 2021.
- Kumar, V. & Pansari,A.(2015) , Measuring the benefits of Employee engagement, MIT Sloan Management Review, Cambridge, Vol. 56, Issue. 4.
- Trends in Global Employee Engagement (2018) ,Global Employee Engagement Rebounds to Match Its All-Time High.(online), Available at http://fnope.org.pl Accessed on 31st August 2021.
- University of York (2008), Employee Engagement [online].Available at http://www.york.ac.uk/admin/hr/abouthr/strategy/employee_engagement.(Accessed: 29th August 2021).
Agree on your views. Furthermore, there are more Benefits that can we list out under Benefits of Employee Engagement such as They will better focused at work, it's bring spirit and energy to the workplace, They continuously come up with new, dynamic ideas which can help build the company’s image and They feel a sense of pride in being a part of the organization. Therefore, they actively promote the brand. They talk about the products and brands to their family and friends
ReplyDeleteYes Gajendran."Employee engagement is also indicator of high productivity and employee retention "(Srivastava & Bhatnagar, 2008). As you mentioned there are plenty of benefits with related. Publicity for the brand is the best thing to happen even from employees. It helps to improve value of the organization in many ways.
DeleteAgreed with you. Employees in a successful and potential employee recruitment and orientation programme are given access to basic information, programmes, services, and other relevant knowledge about the company in order to inspire and motivate them to perform and become active and productive members of society.
ReplyDeleteAgreed with you. "The concept of employee engagement has naturally evolved from past research on high involvement, empowerment, job motivation, organizational commitment and trust (Bernthal, 2009)."As you said motivation of the engaged staff will lead the organization towards success.
DeleteAgreed with you. Further, by understanding the employees of an organization, the development of the organization can be easily achieved. By understanding the employees, the company will be able to promote the word among the public without any effort. As you mentioned, it will definitely increase the revenue of the company. They will motivate and provide productive service to company.
ReplyDeleteThat is correct Sanjeewani. "Employee engagement is not only ensures full commitment from the employees but also creates passionate and enthused workers who strive hard to work towards the organization’s vision and their personal goals (white,2008)."
DeleteAgreed with you.
ReplyDeleteGallup (2015) defines employee engagement as employees who passionate and very attached to their work and further Krueger and Killham (2006), such employees strive the organization forward and innovative.
Yes Jayashi, According to IES (2018 ),Employee engagement is the cornerstone up on which rests a number of positive outcomes such as productivity, improved bottom lines, growth, and customer Satisfaction, employee retention and safety.
DeleteWhile agreeing with the argument. The key drivers of employee engagement as the result of the appropriate alignment of human resource practices are job characteristics, role clarity and fit, coworker and management relations, leadership, and perceptions of fairness (Bagyo, 2014).
ReplyDeleteYes Khalid. Watson (2016) mentioned that 'Engagement is employees' willingness and ability to contribute to company success.' Therefore there are many benefits that the organization can be achieved such as improve productivity , having a good relationship between employees and the management, reduce turnover and cost of recruitment.
DeleteHi Roshini. Agree with your opinion about engaging employees to create a productive workforce. According to the annual report 2020 of Sampath bank PLC in Sri Lanka, “To succeed in an increasingly competitive environment, our employees must remain fully engaged in the Bank’s success. We believe such employees are most likely to stay motivated; thereby increasing our team members' overall productivity”. Sampath Bank PLC in Sri Lanka has done several key employee engagement activities in the year 2020 to motivate and create a productive workforce. Presenting Long Service Awards for 76 team members who completed 25 years of service, launching a “We beyond I” campaign to highlight teamwork and comradeship at the workplace, launching “Save for Tomorrow” competition, to encourage employees to achieve the bank’s strategic goals (Sampath bank annual report, 2020).
ReplyDeleteAgreed with you. Employee engagement is not only ensures full commitment from the employees but also creates passionate and enthused workers who strive hard to work towards the organization’s vision and their personal goals (white,2008).It finally will lead organization towards success by reaching its goals.
DeleteAgreed with your points. Willingness and ability of the employee, will help to success of the organization. Employee engagement is affected by many ways which involve both emotional & rational factors to overall work experience (Perrin ,2003).
ReplyDeleteYes Samuddhi, Gallup Research Group defines employee engagement as the individual’s involvement and satisfaction with as well as enthusiasm for work.(Hater et el,2002).As you mentioned emotionally attached employees will deliver more towards success of the organization.
DeleteIn addition to your views Roshini , when employees are engaged they are not committed but passionate in terms of excited, enthusiastic and productive about what they do (Kroth and Boverie, 2013). In the other hand these employees are focused, profitable, less like to leave the organization and have fun when it needs as they engaged (Gallup Organization, 1999).
ReplyDeleteThanks for sharing! Choosing the right employee engagement platform is the most important thing for any organization. SOS is India's one of the leading Digital Employee Engagement Platform offers employee engagement activities and games for remote teams.
ReplyDeleteWonderful blog! With the global pandemic, corporates are looking for ways to keep their employees engaged and motivated during work from home. A virtual employee engagement company, help organizations to engage their remote employees in various team-building activities.
ReplyDelete