Employee engagement is a fundamental concept in the effort to understand and describe, both qualitatively and quantitatively, the nature of the relationship between an organization and its employees. An "engaged employee" is defined as one who is fully absorbed by and enthusiastic about their work and so takes positive action to further the organization's reputation and interests. An engaged employee has a positive attitude towards the organization and its values. [1] In contrast, a disengaged employee may range from someone doing the bare minimum at work (aka 'coasting'), up to an employee who is actively damaging the company's work output and reputation. [2]
An organization with "high" employee engagement might therefore be expected to outperform those with "low" employee engagement.
Employee engagement first appeared as a concept in management theory in the 1990s, [3] becoming widespread in management practice in the 2000s, but it remains contested. Despite academic critiques, employee engagement practices are well established in the management of human resources and of internal communications.
Employee engagement today has become synonymous with terms like 'employee experience' and 'employee satisfaction', although satisfaction is a different concept. Whereas engagement refers to work motivation, satisfaction is an employee's attitude about the job--whether they like it or not. The relevance is much more due to the vast majority of new generation professionals in the workforce who have a higher propensity to be 'distracted' and 'disengaged' at work. A recent survey by StaffConnect suggests that an overwhelming number of enterprise organizations today (74.24%) were planning to improve employee experience in 2018. [4]
William Kahn provided the first formal definition of personnel engagement as "the harnessing of organisation members' selves to their work roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during role performances." [3]
In 1993, Schmidt et al. proposed a bridge between the pre-existing concept of 'job satisfaction' and employee engagement with the definition: "an employee's involvement with, commitment to, and satisfaction with work. Employee engagement is a part of employee retention." This definition integrates the classic constructs of job satisfaction (Smith et al., 1969), and organizational commitment (Meyer & Allen, 1991).
Defining employee engagement remains problematic. In their review of the literature in 2011, Wollard and Shuck [5] identify four main sub-concepts within the term:
Definitions of engagement vary in the weight they give to the individual vs the organisation in creating engagement. Recent practice has situated the drivers of engagement across this spectrum, from within the psyche of the individual employee (for example, promising recruitment services that will filter out 'disengaged' job applicants [7] ) to focusing mainly on the actions and investments the organisation makes to support engagement. [8]
These definitional issues are potentially severe for practitioners. With different (and often proprietary) definitions of the object being measured, statistics from different sources are not readily comparable. Engagement work remains open to the challenge that its basic assumptions are, as Tom Keenoy describes them, 'normative' and 'aspirational', rather than analytic or operational - and so risk being seen by other organizational participants as "motherhood and apple pie" rhetoric. [9]
Prior to Kahn's use of the term in the mid-1990s, a series of concepts relating to employee engagement had been investigated in management theory. Employee morale, work ethic, productivity, and motivation had been explored in a line dating back to the work of Mary Parker Follett in the early 1920s. Survey-based World War II studies on leadership and group morale sparked further confidence that such properties could be investigated and measured. [10] Later, Frederick Herzberg concluded [11] that positive motivation is driven by managers giving their employees developmental opportunities, activity he termed 'vertical enrichment'.
With the wide range of definitions comes a variety of potential contributors to desirable levels of employee engagement. Some examples:
Eileen Appelbaum and her colleagues (2000) studied 15 steel mills, 17 apparel manufacturers, and 10 electronic instrument and imaging equipment producers. Their purpose was to compare traditional production systems with flexible high-performance production systems involving teams, training, and incentive 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 positive attitudes, including trust, organizational commitment and intrinsic enjoyment of the work. [12] The concept has gained popularity as various studies have demonstrated links with productivity. It is often linked to the notion of employee voice and empowerment. [13]
Two studies of employees in the life insurance industry examined the impact of employee perceptions that they had the power to make decisions, sufficient knowledge and information to do the job effectively, and rewards for high performance. Both studies included large samples of employees (3,570 employees in 49 organizations and 4,828 employees in 92 organizations). In both studies, high-involvement management practices were positively associated with employee morale, employee retention, and firm financial performance. [12] Watson Wyatt found that high-commitment organizations (one with loyal and dedicated employees) out-performed those with low commitment by 47% in the 2000 study and by 200% in the 2002 study. [14]
Employees with the highest level of commitment perform 20% better and are 87% less likely to leave the organization, which indicates that engagement is linked to employee satisfaction and organizational performance. [15] When employers are more empathetic, productivity will naturally increase. 85% of US employees believe that their employers are not empathetic. [16]
In a study of professional service firms, the Hay Group found that offices with engaged employees were up to 43% more productive. [17] Job satisfaction is also linked to productivity. [18]
Frequently overlooked are employees' unique personalities, needs, motives, interests and goals, which interact with organizational factors and interventions to influence engagement levels. On the other hand, some employees will always be more (or less) engaged and motivated than others, as the recently operationalized construct of drive implies. [19]
According to Stein, et al, [20] there are four elements that determine employee engagement, and they include the following:
Increasing engagement is a primary objective of organizations seeking to understand and measure engagement. Gallup defines employee engagement as being highly involved in and enthusiastic about one's work and workplace; engaged workers are psychological owners, drive high performance and innovation, and move the organization forward. Gallup's global measure of employee engagement finds that just 21% of workers are engaged. [21]
Some additional points from research into drivers of engagement are presented below:
Commitment theories are rather based on creating conditions, under which the employee will feel compelled to work for an organization, whereas engagement theories aim to bring about a situation in which the employee by free choice has an intrinsic desire to work in the best interests of the organization. [26]
Recent research has focused on developing a better understanding of how variables such as quality of work relationships and values of the organization interact, and their link to important work outcomes. [27] From the perspective of the employee, "outcomes" range from strong commitment to the isolation of oneself from the organization. [25]
Employee engagement can be measured through employee pulse surveys, detailed employee satisfaction surveys, direct feedback, group discussions and even exit interviews of employees leaving the organization. [28]
Employee engagement mediates the relationship between the perceived learning climate and these extra-role behaviors. [29]
Employee engagement is a multifaceted concept that extends across various stages of the employee lifecycle. [30] From the initial interaction with potential candidates to the feedback gathered during exit interviews, organizations employ different strategies to foster a positive and productive work environment. Let's explore four key types of employee engagement: Candidate Engagement, New Hire Engagement, Employee Satisfaction Surveys, and Exit Interviews, each playing a distinct role in shaping the employee experience and contributing to overall organizational success.
These types of employee engagement collectively contribute to creating a positive work environment, fostering employee satisfaction, and ultimately, enhancing organizational success.
Managers are supposed to foster strategies that keep employees engaged, motivated and dedicated to their work. Work–life balance at the individual level has been found to predict a highly engaged and productive workforce. [31] An important aspect of work–life balance is how well the individual feels they can balance both family and work. The family is a cultural force that differs from its values, structures and roles across the globe. However, the family can be a useful tool for global managers to foster engagement among its team. Parental support policy is being adopted among businesses around the globe as a strategy to create a sustainable and effective workforce. [32] Research suggests businesses that provide paid parental support policy realized a 70% increase in workers productivity. [33] Moreover, firms that provided paid parental leave gained a 91% increase in profits, by providing parents with resources to balance both work and personal life. [34] These findings are supported by social exchange theory, which suggests that workers feel obliged to return the favour to employers in the way of hard work and dedication when compensated with additional benefits like parental support. [32]
When using parental support (e.g. parental leave) as a strategy to enhance global workforce engagement, managers must consider a work-life fit [31] model, that accounts for the different cultural needs of the family. Managers in multinational corporations must understand cultural diversity and should consider an adaptive and flexible policy to adhere to the needs of the individual level. Companies may have diverse representation among its workforce that may not align with the policy offered in the external political environment. In addition, as companies expand across the globe, it is important to avoid creating a universal policy that may not adhere to the cultural conditions aboard. In a study conducted by Faiza et al. (2017), centrality and influence were two concepts used to help inform employers about the individual cultural needs of employees. [35] Centrality referred to the organization understanding the social and environmental domain in which it was operating in. This is useful because managers need to understand the external factors that could influence the cultural needs and/or tensions experienced by the employees. Next, it was important for organization to allow employees to influence policy so that the organization could adapt policies to meet employee's needs.
Employee engagement has opened for industry debate, with questions such as:
Engagement has also been applied in relation to volunteers, for example more engaged Scout volunteers are likely to have increased satisfaction towards management. Work engagement relates to the positive internal mental state of a volunteer toward required tasks. [40]
Industrial and organizational psychology "focuses the lens of psychological science on a key aspect of human life, namely, their work lives. In general, the goals of I-O psychology are to better understand and optimize the effectiveness, health, and well-being of both individuals and organizations." It is an applied discipline within psychology and is an international profession. I-O psychology is also known as occupational psychology in the United Kingdom, organisational psychology in Australia and New Zealand, and work and organizational (WO) psychology throughout Europe and Brazil. Industrial, work, and organizational (IWO) psychology is the broader, more global term for the science and profession.
In organizational behavior and industrial and organizational psychology, organizational commitment is an individual's psychological attachment to the organization. Organizational scientists have also developed many nuanced definitions of organizational commitment, and numerous scales to measure them. Exemplary of this work is Meyer and Allen's model of commitment, which was developed to integrate numerous definitions of commitment that had been proliferated in the literature. Meyer and Allen's model has also been critiqued because the model is not consistent with empirical findings. It may also not be fully applicable in domains such as customer behavior. There has also been debate surrounding what Meyers and Allen's model was trying to achieve.
A performance appraisal, also referred to as a performance review, performance evaluation, (career) development discussion, or employee appraisal, sometimes shortened to "PA", is a periodic and systematic process whereby the job performance of an employee is documented and evaluated. This is done after employees are trained about work and settle into their jobs. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations.
Job satisfaction, employee satisfaction or work satisfaction is a measure of workers' contentment with their job, whether they like the job or individual aspects or facets of jobs, such as nature of work or supervision. Job satisfaction can be measured in cognitive (evaluative), affective, and behavioral components. Researchers have also noted that job satisfaction measures vary in the extent to which they measure feelings about the job. or cognitions about the job.
Organizational behavior or organisational behaviour is the "study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself". Organizational behavioral research can be categorized in at least three ways:
In industrial and organizational psychology, organizational citizenship behavior (OCB) is a person's voluntary commitment within an organization or company that is not part of his or her contractual tasks. Organizational citizenship behavior has been studied since the late 1970s. Over the past three decades, interest in these behaviors has increased substantially.
Organisational climate is a concept that has academic meaning in the fields of organisational behaviour and I/O psychology as well as practical meaning in the business world There is continued scholarly debate about the exact definition of organisational climate for the purposes of scientific study. The definition developed by Lawrence R. James (1943-2014) and his colleagues makes a distinction between psychological and organisational climate.
"Psychological climate is defined as the individual employee’s perception of the psychological impact of the work environment on his or her own well-being. When employees in a particular work unit agree on their perceptions of the impact of their work environment, their shared perceptions can be aggregated to describe their organisational climate ."
Workforce productivity is the amount of goods and services that a group of workers produce in a given amount of time. It is one of several types of productivity that economists measure. Workforce productivity, often referred to as labor productivity, is a measure for an organisation or company, a process, an industry, or a country.
Affective events theory (AET) is an industrial and organizational psychology model developed by organizational psychologists Howard M. Weiss and Russell Cropanzano to explain how emotions and moods influence job performance and job satisfaction. The model explains the linkages between employees' internal influences and their reactions to incidents that occur in their work environment that affect their performance, organizational commitment, and job satisfaction. The theory proposes that affective work behaviors are explained by employee mood and emotions, while cognitive-based behaviors are the best predictors of job satisfaction. The theory proposes that positive-inducing as well as negative-inducing emotional incidents at work are distinguishable and have a significant psychological impact upon workers' job satisfaction. This results in lasting internal and external affective reactions exhibited through job performance, job satisfaction, and organizational commitment.
Onboarding or organizational socialization is the American term for the mechanism through which new employees acquire the necessary knowledge, skills, and behaviors to become effective organizational members and insiders. In standard English, this is referred to as "induction". In the United States, up to 25% of workers are organizational newcomers engaged in onboarding process.
Work engagement is the "harnessing of organization member's selves to their work roles: in engagement, people employ and express themselves physically, cognitively, emotionally and mentally during role performances". Three aspects of work motivation are cognitive, emotional and physical engagement.
Enterprise engagement is a sub-discipline of marketing and management that focuses on achieving long-term financial results by strategically fostering the proactive involvement and alignment of customers, distribution partners, salespeople, and all human capital outside and inside of an organization. Enterprise engagement is distinct from the traditional sub-disciplines of financial management, marketing, sales, operations, and human resources in that it seeks to achieve long-term success by integrating these various traditional business disciplines to consistently focus the organization on identifying and meeting target audience needs. Enterprise Engagement is related to brand engagement, a term developed in Great Britain in the 2000s to describe an integrated external and internal marketing approach to achieving long-term success for a brand. Enterprise Engagement applies similar principals to the achievement of an organization's overall financial objectives.
Despite a large body of positive psychological research into the relationship between happiness and productivity, happiness at work has traditionally been seen as a potential by-product of positive outcomes at work, rather than a pathway to business success. Happiness in the workplace is usually dependent on the work environment. During the past two decades, maintaining a level of happiness at work has become more significant and relevant due to the intensification of work caused by economic uncertainty and increase in competition. Nowadays, happiness is viewed by a growing number of scholars and senior executives as one of the major sources of positive outcomes in the workplace. In fact, companies with higher than average employee happiness exhibit better financial performance and customer satisfaction. It is thus beneficial for companies to create and maintain positive work environments and leadership that will contribute to the happiness of their employees.
Employee retention is the ability of an organization to retain its employees and ensure sustainability. Employee retention can be represented by a simple statistic. Employee retention is also the strategies employers use to try to retain the employees in their workforce.
Personnel psychology is a subfield of industrial and organizational (I-O) psychology. Personnel psychology is the area of I-O psychology that primarily deals with the recruitment, selection and evaluation of personnel, and with other job aspects such as morale, job satisfaction, and relationships between managers and workers in the workplace. It is the field of study that concentrates on the selection and evaluation of employees; this area of psychology deals with job analysis and defines and measures job performance, performance appraisal, employment testing, employment interviews, personnel selection and employee training, and human factors and ergonomics.
Positive psychology is defined as a method of building on what is good and what is already working instead of attempting to stimulate improvement by focusing on the weak links in an individual, a group, or in this case, a company. Implementing positive psychology in the workplace means creating an environment that is more enjoyable, productive, and values individual employees. This also means creating a work schedule that does not lead to emotional and physical distress.
Work motivation is a person's internal disposition toward work. To further this, an incentive is the anticipated reward or aversive event available in the environment. While motivation can often be used as a tool to help predict behavior, it varies greatly among individuals and must often be combined with ability and environmental factors to actually influence behavior and performance. Results from a 2012 study, which examined age-related differences in work motivation, suggest a "shift in people's motives" rather than a general decline in motivation with age. That is, it seemed that older employees were less motivated by extrinsically related features of a job, but more by intrinsically rewarding job features. Work motivation is strongly influenced by certain cultural characteristics. Between countries with comparable levels of economic development, collectivist countries tend to have higher levels of work motivation than do countries that tend toward individualism. Similarly measured, higher levels of work motivation can be found in countries that exhibit a long versus a short-term orientation. Also, while national income is not itself a strong predictor of work motivation, indicators that describe a nation's economic strength and stability, such as life expectancy, are. Work motivation decreases as a nation's long-term economic strength increases. Currently work motivation research has explored motivation that may not be consciously driven. This method goal setting is referred to as goal priming.
Employee motivation is an intrinsic and internal drive to put forth the necessary effort and action towards work-related activities. It has been broadly defined as the "psychological forces that determine the direction of a person's behavior in an organisation, a person's level of effort and a person's level of persistence". Also, "Motivation can be thought of as the willingness to expend energy to achieve a goal or a reward. Motivation at work has been defined as 'the sum of the processes that influence the arousal, direction, and maintenance of behaviors relevant to work settings'." Motivated employees are essential to the success of an organization as motivated employees are generally more productive at the work place.
A job attitude is a set of evaluations of one's job that constitute one's feelings toward, beliefs about, and attachment to one's job. Overall job attitude can be conceptualized in two ways. Either as affective job satisfaction that constitutes a general or global subjective feeling about a job, or as a composite of objective cognitive assessments of specific job facets, such as pay, conditions, opportunities and other aspects of a particular job. Employees evaluate their advancement opportunities by observing their job, their occupation, and their employer.
Employee recognition is the timely, informal or formal acknowledgement of a person's behavior, effort, or business result that supports the organization's goals and values, and exceeds their superior's normal expectations. Recognition has been held to be a constructive response and a judgment made about a person's contribution, reflecting not just work performance but also personal dedication and engagement on a regular or ad hoc basis, and expressed formally or informally, individually or collectively, privately or publicly, and monetarily or non-monetarily.
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