The impact of employee
engagement
Employee Engagement
Engagement
takes place when people are committed to their work and the organization and
are motivated to achieve high levels of performance (Michael and Stephen,2013), and also according to Schrita and Mohamad (2017), dedicated and meaningful
work enables employees to realize how valuable they are within the organization
and makes them engaged. The basic needs of satisfaction have been found to
directly relate to dedication of employees
At the
same time Employee engagement has been perceived as a motivational factor
towards organization’s objectives achievement. The good environment that is
offered to the worker enables him to offer the best that the organization needs
for its achievement of goals and objectives(Kazimoto,2016). further the world’s
top- performing organizations understand that employee engagement is a force
that drives business results (Bhavani , Sharavan and Arpitha,2015). Hewitt Associates (2009,p1) defined an engaged employee as “the
measure of an employee’s emotional and intellectual commitment to their
organization and its success” (Karen and Aneil,2014).
Stakeholders of Employee Engagement
According
to Michael and Stephen (2013) Line managers play a key role in enhancing job
engagement with the support of organizational initiatives in the areas of job
design; learning programmes, including leadership development for line
managers; and performance and reward management systems.
Also
Solomon and Sandhya (2010) state Managers unequivocally agree that this century
demands more efficiency and productivity than any other times in history.
Businesses are striving to increase their performance. Managers have been
grappling with many challenges to succeed putting their company ahead of
competitors.
Importance of work environment
on employee engagement
Employee
behaviors do not occur in a vacuum, but in a specific and unique work
environment. People placed in work environments that “fit” are more likely to
intrinsically enjoy their work (James and Jeanne,2006). Flexible work practices
have long been viewed by employees as valuable workplace tools to facilitate
work life management. Employees report that workplace flexibility influences
decisions to join an organization, satisfaction with their jobs, and plans to
stay with their employers. Recently, some employers have come to recognize that
workplace flexibility positively influences valued business outcomes such as
attracting, motivating, and retaining key talent in competitive labor markets,
increasing employee satisfaction and engagement, as well as improving
efficiency and effectiveness (Amy et al,2008).
The reverse is true for those placed in work environments that do not “fit”.
For these employees, normal daily work occurrences may be unpleasant and
interpreted more negatively, thus resulting in negative outcomes such as
boredom, poor work performance, and lack of satisfaction. Also younger
employees were “less loyal to the company”. As a result, younger employees may take the view
that nothing is permanent, and may disproportionately emphasize the importance
of work environments that match their preferences (James and Jeanne,2006).
Key driving factors of employee
engagement
The
main drivers of engagement are meaningful work (the most important), senior
management vision and communication, positive perceptions of one’s line manager
and employee voice – employees having a say in matters that concern them (Michael
and Stephen,2013). Macey et al (2009) emphasized the work environment and
the jobs people do. They noted that: engagement requires a work environment
that does not just demand more but promotes information sharing, provides
learning opportunities and fosters a balance in people’s lives, thereby
creating the bases for sustained energy and personal initiative (Michael and
Stephen,2013).
Employee
engagement can be achieved through the creation of an organizational
environment where positive emotions such as involvement and pride are
encouraged, resulting in improved organizational performance, lower employee
turnover and better health. At the same time individuals feel positive
emotions, they are able to think in a more flexible, open-minded way and are
also likely to feel greater self-control, cope more effectively and be less
defensive in the workplace (Soni, ND).
According
to Penna (2007) research report meaning at work has the potential to be
valuable way of bringing employers and employees closer together to the benefit
of both where employees experience a sense of community, the space to be
themselves and the opportunity to make a contribution, they find meaning.
Employees want to work in the organizations in which they find meaning at work.
On the other hand, The White (2006) study found that almost two thirds’ (60%)
of the surveyed employees want more opportunities to grow forward to remain
satisfied in their jobs. Strong manager-employee relationship is a crucial
ingredient in the employee engagement and retention formula. Further The Towers
Perrin Talent Report (2003) identifies the top ten work place attributes which
will result in employee engagement. The top three among the ten drivers listed
by Perrin are: Senior management’s interest in employees’ well-being, challenging
work and Decision making authority. In other words, CIPD (2006) on the basis of
its survey of 2000 employees from across Great Britain indicates that
communication is the top priority to lead employees to engagement (Solomon and
Sandhya,2010).
Outcomes of employee engagement
Engaged
employees perform better, are more innovative than others, are more likely to
want to stay with their employers, enjoy greater levels of personal well-being
and perceive their workload to be more sustainable than others (Michael and
Stephen,2013) Employee engagement matters to both the employee as well as the
organization. Employees can utilize contract agreement provisions to impede the
attainment of the organizational goals and objectives. Management’s capability
to leverage employee engagement strategies is essential in an organization.
Organizations that have highly engaged employees have greater profits than
those that do not (Society for Human Resource Management [SHRM], 2014).
Organizations with highly engaged employees experience increased customer
satisfaction, profits, and employee productivity (Schrita and Mohamad ,2017).
Challenges in an organization for
employee engagement
According to Balaji, (2014)
the challenges for employee engagement is as follows
- Managers and employees don’t understand
engagement.
- The goals and metrics of engagement programs
are often limited.
- Engagement is not productivity or an output.
- Outside factors may influence engagement.
- Diverse employees and different generations are
engaged by different things.
- Difficulty in understanding fluctuating mind of
youngsters.
- Underestimating the significance of employee
engagement in the organizational success.
- Lack of co-operation and co-ordination from
management.
- Figure
1: Employee Effectiveness Framework – Common Drivers.
(Source:
Hay Group,2016).
After
reviewing research & survey findings of Hay Group by Gullab, it can be
certainly concluded that high levels of employee engagement will lead to
improved employee commitment & involvement towards job and thus creating a
motivated workforce – that will work together to achieve the common goals of
the organization. Highly engaged workforce will definitely make an organization
more successful in terms of financial & nonfinancial parameters. Employee
Engagement depends on four major conditions in the workplace: Organization’s
culture, continuous reinforcement of people focused policies, meaningful
matrices and organizational performance (Yuvika.S,2016).
Hemas Manufacturing Pvt Ltd:
Impact of cross functional team initiatives towards establishing more employee
engagement
As
organizations take on challenges that require increasingly innovative and
practical solutions, the value of cross-functional teams is becoming more
evident than ever. Bringing together the resources and skills from employees
across different departments and functions, these teams are capable
of delivering better and faster results if they are
well-organized and managed effectively. Through teamwork and collaboration,
they can become an invaluable asset to an organization.
Hemas
HR form a cross fictional teams for each for their main brands represent
(Personal care/Home care/Oral care/personal Hygiene) Each team have 12-member
combination from key department of the company (Sales/Marketing/Finance/Supply
chain/R&D/Production/HR). Brand manager of each category is nominated as
the leader of each team.
Role
of cross functional teams
· Collaboration with the team, brand manager develops the annual brand plan
and get the approval from management to execute the plan
· Initiate and execute various
projects to achieve desired brand and company objectives
Evaluation of cross functional team performance
·
At the end of the
financial year each team need to submit a report to management about activities
they have initiated as a team and outcomes, impact towards achieving brand and company objectives
· Each team will be
given to present the summary to the top management. Thereafter top management
decide the ranking of each team (financial objective achievement /innovation/team
work contribution.)
Reward and recognition
·
Each member of the
winning team will be rewarded with cross functional team incentive bonus
according to their contribution (Commitment/leadership/technical
know-how/innovation.)
·
Cross functional team
contribution is considered as a KPI for individual performance review stage
(Executive and above category)
Importance of having cross functional team
· Make sure all employees are engaged towards company goals despite the functional specialization
· Promote frequent communication
· Establish and maintain processes
· Organize regular team Building activities
· Measure performance from multiple angles
Key initiatives of cross functional teams in 2016
and 2017
· Home Care-Diva Sepalika variant launch
· Personal care –Velvet body wash launch
· Oral care –Gel variant launch
· Cost saving project of distribution and warehouse management – Baby care
Conclusion
Professionals
expect to work with peers who are competent. If this does not occur, employee
engagement decreases. On the other hand,
when teams of highly competent people are brought together, employee engagement
tends to grow. Also the competition for talent is expected to get tougher as
there is a demand for more services. In addition, engaged employees are more
likely to stay with the organization. Higher levels of employee retention are
tied to better quality care, as well as lower costs for temporary and overtime
staff (Balaji,2014).
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