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.



Comments

  1. As you have discussed, engaged employees are valuable assets to any organizations

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