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Employee Engagement: The Concept and Its Benefits for Organization

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IAETSD JOURNAL FOR ADVANCED RESEARCH IN APPLIED SCIENCES ISSN NO: 2394-8442

Employee Engagement: The Concept and Its Benefits for

Organization
Prof.(Dr.) L.K.Tripathy
Director, Global Business School & Research Centre, Dean, Faculty of Management
Dr.D.Y.Patil Vidyapeeth (Deemed to be University) Tathawade, Pune-411033
E mail id: drlktripathy@gmail.com

ABSTRATCT: The purposes of this paper are understanding of the concept of Employee Engagement and further
its benefits for the organizations. Primary as well as secondary data has been used to carry out the research.
Employee engagement is a complex concept, with many issues influencing engagement levels. Consequently, there
are many ways to cultivate the employee engagement, with no one “standard formula” that fits all organizations.
While each organization may define employee engagement differently, ultimately, the basis of an effective
engagement will be rooted in the flexibility of approach most appropriate for each individual organization.

KEYWORDS: Attrition, Retention, Employee Engagement, Service Industry, Business Environment, Job
Satisfaction; Job Enlargement

Introduction to Employee Engagement

Employee engagement has been the focus of growing interest in recent years as research in positive organizational
phenomena has expanded. Establishing an engaged workforce is now a high priority for many organizations in both
the private and public sectors. Many employers feel that engaged employees outperform others by showing
heightened interest in their work and being prepared to ‘go the extra mile’ for their organization. Employees also
benefit, as some studies have shown that engaged employees see their work as more meaningful and fulfilling.

Engagement is the extent to which employees put discretionary effort into their work beyond the minimum to get
the job done, in the form of extra time, brain power or energy. Engagement is driven by an employee’s immediate
experience of the organization. The factors that build or destroy engagement are driven by the unique situation of
each organization and the combinations of factors needed to boost engagement are therefore different between
organizations.1

There are three levels of engagement as below:

 Engaged - employees who work with passion and feel a profound connection to their organization. They drive
innovation and move the organization forward;
 Not engaged – employees who attend and participate at work but are timeserving and put no passion or energy into
their work; and
 Disengaged – employees who are unhappy at work and who act out their unhappiness at work.
Engagement as a psychological state has variously embraced one or more of several related ideas, each in turn
representing some form of absorption, attachment, and/or enthusiasm. Operationally, the measures of engagement
have for the most part been composed of a potpourri of items representing one or more of the four different
categories: job satisfaction, organizational commitment, psychological empowerment, and job involvement.

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Understanding the Concept of Employee Engagement

The term employee engagement, in its present usage, was coined by the Gallup Organization, as a result of years of
experience in interviewing and surveying employees and managers. Their intent was to create a measure of
workplaces that could be used for comparisons.2 Gallup proposed that employees could be divided into three groups
with regard to their level of engagement, the engaged, not engaged and the actively disengaged, with the later being
of most concern to the organization as a result of sharing their discontent with their peers and the wider world 3
(see Exhibit 1).

Exhibit 1: Employee Types according to Engagement Levels

Engagement at work was conceptualized and characterized as the 'bridling of authoritative individuals' selves to
their work parts'. In engagement, individuals utilize and convey what needs be physically, psychologically, and
candidly amid part exhibitions.4 As an idea that has created after some time, engagement has been characterized in
various, frequently conflicting, courses in the writing, to such an extent that the term has turned out to be
questionable to numerous and it is uncommon to discover two individuals characterizing it in same way. It has
differently been considered as a mental or emotional state (e. g. responsibility, contribution, connection and so
forth.), an execution build (e. g. part execution, exertion, discernible conduct, hierarchical citizenship conduct and
so forth or a disposition. Some even relate the idea to other particular builds, for example, charitableness or activity
and little agreement has been come to in the writing as to which of these definitions is the complete, or if nothing
else, 'best-fit' model of engagement.5

A decent meaning of an idea particularly one of an intellectual or subjective nature 'prompts normal understanding
... is represented with numerous behavioral illustrations ... expressed such that the operations for its estimation are
… clear … and broadly acknowledged as sensible and sensible'. The significance of characterizing terms, for
example, engagement was featured in different research studies and it was recommended that distinctive
implications that are perused into the term result in extensive variety in what is being measured, which 'creates a
progression of opposing and non-replicable investigations.6

Engagement alludes to connection, inclusion, focus, and the level of slant towards exercises, for example,
entertainment, interests, or work. A key idea is stream, when time appears to stop and one loses one's feeling of self,
and focuses strongly on the present. In positive brain research, "stream" portrays a condition of absolute, merry
drenching right now. When we concentrate on doing the things we really appreciate and think about, we can start
to connect with totally with the present minute and enter the condition of being known as "stream".7

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Representative engagement is characterized as 'An inspirational demeanor held by the worker towards association
and its esteems. A drew in representative knows about business setting and works with partners to enhance
execution inside the activity for the advantage of the association. The association must work to create and sustain
engagement which requires a two-path connection amongst business and representative'. Representative
engagement can be accomplished through the formation of a hierarchical situation where positive feelings, for
example, association and pride are empowered, bringing about enhanced authoritative execution, bring down
worker turnover and better wellbeing.8

It was watched that authoritative duty likewise varies from engagement in that it alludes to a man's demeanor and
connection towards their association, while it could be contended that engagement isn't only a state of mind; it is
how much an individual is mindful to their work and consumed in the execution of their part. A more grounded
hypothetical method of reasoning for clarifying worker engagement can be found in Social Exchange Theory (SET).
SET contends that commitments are produced through a progression of cooperations between parties who are in
a condition of corresponding association. One path for people to reimburse their association is through their level
of engagement. The Gallup Organization discovered basic connections between representative engagement, client
steadfastness, business development and benefit. 9

Engagement is most intently connected with the builds of occupation association and 'stream.' There are six regions
of work-life prompt either burnout or engagement: workload, control, prizes and acknowledgment, group and social
help, saw decency and qualities. It was watched that the idea of engagement is significant and esteemed work being
related with engagement, and subsequently it is critical to think about the idea of 'meaning'. 10

Worker Engagement has turned into a theme of worry in mid 2000 when the dotcom bubble burst, the economy
plunged, and joblessness rose. Around then, the basic reaction from administrators to representatives was, "You
ought to be cheerful you have a vocation." Work desires rose, while organizations solidified workers' compensation.
The outcome was a withdrawn workforce. Workers had been put through so much that when the financial
conditions enhanced they understood that they have options somewhere else. This made monstrous torment
managers who feared losing them. Businesses at that point began doing engagement studies, engagement studies,
and engagement workshops to create engagement methodologies.11

In a prior research directed on "An observational examination on Employee Engagement Practices in Indian BPO
Industries", went for presenting worker engagement and key research on engagement related factors in BPO
Industries in India. The creator s led a writing look on representative engagement and meetings with 126 officials.
Profession improvement, execution examination and inspiration factors are associated with representative
engagement. The suggestions are that pioneers ought to be instructed on engagement, profession advancement
openings are especially imperative and that execution change should champion work life adjust, these practices are
valuable to build engagement. 12

An exploration ponder on "Investigation of Employee Engagement and its Predictors in an Indian Public Sector
Undertaking", gives an appraisal of the level of representative engagement among chiefs of an open area undertaking
in India. Other than featuring the level of engagement, the investigation has distinguished the indicators of
hierarchical duty, which was utilized as a vital sign of worker engagement. The investigation depends on essential
information gathered from 84 administrative workers on various parameters identifying with representative
engagement and its potential indicators. The examination has uncovered that the level of representative engagement
in this association is very unassuming. Three variables, for example, pay, work substance and objectivity are observed
to be the indicators of representative engagement. 13

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An investigation did before on "Determinants of Employee Engagement in a Private Sector Organization: An

Exploratory Study" expected to discover the level of representative engagement and the determinants thereof among
the business officials of a private area association. Test for the investigation comprises of 51 deals administrators of
an assembling association situated in the National Capital Region. The examination discoveries demonstrate a no
matter how you look at it low evaluating on each of the 14 parameters of the investigation. Different relapse
investigation uncovered that four out of the 12 potential indicators, all of which have a place with the circumstance
inside which the representatives are working, are the basic determinants of worker engagement. 14

Research attempted about "Self-Oriented, Other-Oriented, and Socially Prescribed Perfectionism in Employees:
Relationships with Burnout and Engagement", analyzes how singular contrasts in self-arranged, other-situated, and
socially recommended hairsplitting were related with burnout and engagement in an example of 106 representatives.
Consequences of connection and relapse examinations demonstrated that compulsiveness clarified fluctuation in all
aspects of Burnout (Exhaustion, Cynicism, Reduced Efficacy) and Engagement (Vigor, Dedication, Absorption).
Though socially recommended hairsplitting was related with larger amounts of burnout and lower levels of
engagement, self-arranged and other-situated compulsiveness were related with bring down levels of burnout and
more elevated amounts of engagement. The discoveries demonstrate that individual contrasts in compulsiveness
might be a contributing element to burnout and engagement in the work-put. 15

A task on "A Speech-Act Model for Talking to Management, Building a Framework for Evaluating Communication
inside the SRI Engagement Process", can be considered as an initial phase in the advancement of a standard for the
engagement rehearse. By building up an engagement heuristic, this article offers a more straightforward engagement
exchange. Drawing on Stevenson's and Austin's discourse demonstration hypotheses, this article builds up an order
of administration's reactions to the motioning of affirmations and contentions on two measurements: an authentic
measurement concerning (dis)agreements on real claims and an attitudinal measurement concerning (dis)agreements
on obligations, qualities, and standards. Based on the qualifications this article builds up, the writers accommodate
a succinct table and offer a subsequent stage heuristic for the engagement procedure that began with flagging a
worry to administration. The article utilizes an engagement rationale that, while keeping the leave alternative for the
financial specialist open, enables administration to address flagged worries without letting down or to quit at the
main misfortune in the exchange procedure amongst speculator and investee enterprise.16

An examination about "Ability administration methodology of worker engagement in Indian ITES representatives:
Key to Retention", demonstrated that a decent level of engagement may prompt high maintenance, yet just
temporarily in the ITES segment. The requirement for a more thorough worker engagement develop is
demonstrated by the examination. Down to earth suggestions for maintenance in the BPO/ITES segment are
alluded to representative engagement.17

Empirical Research Results 18

The survey was conducted in service industry organizations in select cities in India. The profiles of the respondents
included are HR professionals. The sample size of the survey was 64. The primary data for this survey was collected
using the sample questionnaire. A questionnaire was developed to investigate employee engagement strategies and
to find the attrition rate of organizations. HR professionals of 64 organizations from service industry were
approached to collect data with regards to the variables under study.
Hypothesis H1: There will be a significant negative correlation between employee engagement and attrition rate in
organizations.
Statistical details for the same are as below (see Exhibit 2, Exhibit 3 and 4):
Mean and Standard deviation for employee engagement was found to be 76.45 and 13.882 respectively (Exhibit 2).
High standard deviation indicates that there is great variation among the employee engagement scores of
organizations.

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Exhibit 2: Descriptive Statistics for Attrition Rate and Employee Engagement Total Score
N Minimum Maximum Mean Std.
Deviation
Attrition Rate for last year 64 1 60 15.25 8.808
Employee Engagement 64 38 102 76.45 13.882

To test the hypothesis, respondents (HR professionals) were asked about the attrition rate calculated for the previous
year. This was correlated with total employee engagement score obtained. SPSS software was used to test the
hypothesis under consideration. Pearson product moment correlation was applied on the data set of 64 respondent
organizations. (Exhibit 3)

Exhibit 3: Pearson product moment correlation coefficient for Employee Engagement total score with Attrition
Rate calculated for last year
Employee Attrition Rate
Engagement for last year
total score
Employee Engagement total Pearson Correlation 1 -0.638 (**)
score Sig. (1-tailed) .000
N 64 64
(**) Correlation is significant at the 0.01 level (1-tailed).

Results showed that employee engagement has a moderately strong negative correlation with attrition rate in
organizations (r = -0.638). The correlation coefficient was found to be significant at .01 levels. Thus, indicating that
organizations that score high on employee engagement tend to have a lower attrition rate.

Regression analysis was further applied to the data set to find whether any predictive relationship can be established.
The coefficient of determination (r2) was found to be 0.407 (Exhibit 4). Thus, it can be said that some of the variation
in attrition rate can be explained by employee engagement initiatives of the organizations.

Exhibit 4: Descriptive Statistics for Attrition Rate and Employee Engagement Total Score
Independent Variable r2 F B Sig
Employee Engagement total 0.407 42.520 46.192 .01
score

Inference -
The said hypothesis H1 stands accepted.
Conclusions 19
The present research paper features the way that worker engagement activities fundamentally lessen wearing down
rate in associations. Future looks into can go for finding the lessening in wearing down rate in associations because
of worker engagement activities. The present research paper found that associations which score high on usage of
worker engagement systems have a lower whittling down rate. Representative whittling down is both a clear and
complex issue. The beam of seek after HR administrators and line chiefs, who battle to keep their skilled
representatives, is to deliberately incorporate worker engagement activities with their work culture. Promote the
impact of these interests in decreasing the representative whittling down rates should be exhibited to the best
administration who at that point will feel more sure about further putting resources into such activities.

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IAETSD JOURNAL FOR ADVANCED RESEARCH IN APPLIED SCIENCES ISSN NO: 2394-8442

Accordingly it might be reasoned that there is sure connection between worker engagement and occupation
fulfillment or representative engagement impact emphatically on work fulfillment. This can be presumed that among
the previous work inspiration can be enhanced through expanding work expert and responsibility. At the
administrative level, rewards and endorses are altogether connected with work association.

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