MEASURING THE BENEFITS OF EMPLOYEE ENGAGEMENT
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 are associated with higher rates of profitability growth.
Over the years, the media and academia have paid close
attention to various customer-driven strategies — aimed at improving measures
such as customer satisfaction, customer loyalty and company profits. However,
in recent years, the focus has changed. Although the ability to deliver a good
product or service to customers who want it and are willing to pay for it is
still seen as the key ingredient to success, there is a growing interest in understanding
the impact of employees on the bottom line. (Pansari, June 16, 2015)
That some companies are choosing to invest in better-trained
and more service-oriented workforces should be no surprise. With increasing
competition, technological advances and globalization, many companies,
especially those selling services, have come to realize that employee
expenditures are more than a cost: Employees are the face of the business and
sources of innovation and organizational knowledge. They interact with
customers at every touch point and create lasting brand impressions. They
personify the company’s service philosophy and are expected to live by its
culture and values. While the products and services many companies offer can
appear quite similar on the surface, exceptional service can be a competitive
advantage. Competing through service is only possible when the organization
treats its employees as a valuable resource.
For the past two decades, employee engagement has been a
topic of interest both in the academic literature and among managers.
Initially, it was thought of as personal engagement with the organization and
indicated that an employee’s focus was on the performance of assigned tasks.
Over the years, several definitions have emerged. Some researchers focused on
worker burnout, the idea being that employees who are not experiencing burnout
are engaged. Others went beyond burnout and fatigue to focus on the basic needs
at a workplace, noting that if employees are engaged, then they “are positive
about their work being meaningful, their workplace being safe and the
availability of sufficient resources for completing tasks.” Still others
explored the emotional side of work and provided a comprehensive definition
that focused on the cognitive, emotional and behavioral components associated
with an individual’s performance. (Kumar, June 16, 2015)
References
Kumar,
V. (June 16, 2015). Measuring the Benefits of Employee Engagement. Magazine:
Summer 201.
Pansari, A. ( June 16, 2015). Measuring the
Benefits of Employee Engagement. Magazine: Summer 2015.
As you have discussed, engaged employees are valuable assets to any organizations
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