Concept and drivers of employee engagement Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand and discuss the concept of employee engagement, what it is and its importance
- Understand the benefits of an engaged workforce to an orgnization
- Understand the impact of engaged employees to the performance of an organization
1.0 INTRODUCTION
What is Employee engagement?
CIPD (2014) has defined employee engagement as employee commitment to an organization, its values as well as their willingness to help colleagues. Stairs and Gilpin (2010) defined it as employee commitment to their employer, their will to thrive at work as well as their motivation to offer their best in order to benefit not only themselves but the organization as well. According to Anitha (2014), it refers to how much commitment and involvement employees have towards an organization and its values.
As noted by Armstrong and Taylor (2017) employee engagement is a two way relationship between the employer and employee whereby the employee chooses to voluntarily repay the organization for the resources he/she receives from it. The motivational elements for engagement are intrinsic and not as a result of pay or a binding contract (Armstrong and Taylor 2017). High levels of engagement reduce absenteeism, enhance customer loyalty and satisfaction, increase sales and boost fast growth among other benefits (Pilbeam and Corbridge 2010; Marchington, and Wilkinson 2012).
Despite the notable importance of employee engagement in organizational success, employee engagement across major countries like the UK is still considerably low. In a survey carried out by Qualtrics Employee Pulse, the UK recorded an average engagement score of just 45%, where by France scored 54%, Australia 56% and 60% in the USA, making UK employees the least engaged (Davies 2017). According to the survey findings, organizations mostly focus on normal elements such as career progression, pay and take for granted most important factors such as supporting work-life balance of employees as well as opportunities to try more lateral things in their roles (Davies 2017).
As noted by Foot et al (2016), leadership communication is vital in building an engaged team of employees. This is because effective communication is important in keeping employees well versed and strengthening the organizational purpose. The communication must go further to illustrate that the company listens to its employees and takes them seriously (Foot et al 2016). Today, with organizations working in a volatile environment, they need to ensure that they keep an engaged team in order to achieve a competitive advantage. Making employees feel respected and valued is thus an important facet of creating and strengthening the psychological contract (Armstrong and Taylor 2017).