According to Kompaso & Sridevi, (2010) employee engagement is an approach applied by employers with the objective of ensuring that all members of a company work in the right conditions thus improving workers’ productivity. In situations where an organization applies a viable employee engagement strategy, there is a probability that workers feel motivated to contribute to organizational goals and values. Successful employee engagement calls for a need of developing a two-way trust and integrity which requires continuous communication among the involved parties.
Employee engagement is essential because it leads to increased productivity, customer satisfaction, employee retention, and enhancing the company’s culture. In cases where a company gets committed to investing among workers, there is a probability that such employees will increase their output as opposed to where there is little investment in workers. According to Kompaso & Sridevi, (2010) employees who feel engaged in a company are expected to increase productivity by 21% more than those who think are less recognized by their employers. Workers who succeed and feel recognized by employers feel proud about the organization, and the employees feel motivated to perform duties on a daily basis thus increasing productivity.
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In most cases, people with a positive feeling about their work are the best people to interact with customers. Engaged employees show commitment in their work, and they are likely to listen to customers and provide the best assistant to clients (Kompaso & Sridevi, 2010). Employees who feel served well spread the excellent experience to others thus drawing many customers to the organization. Since workers think they are recognized and experiencing maximum benefits they receive from the organization, there is a possibility that the organization will end up retaining the best workers who create a positive image of the corporation. Employee engagement also has the effect of improving the company’s culture because all the employees in business feel happy and continue praising the businesses culture and suggesting improvement on particular issues that create a positive image about the organization.
Effects of employee engagement on the organization’s bottom line
Increased sales volume
High levels of employee engagement force workers to deliver their best especially when interacting with customers. Consequently, customers who feel satisfied with the services from that particular organization are likely to return to the business to make more purchases. Most likely, they become marketers for the organization thus introducing new customers. Consequently, the company will register an increase in sales volume (Harter et al., 2010).
Profitability
According to Harter et al., (20101) employee engagement encourages workers to align themselves in a manner that fits the organization’s core values. The objective of employee alignment is to reduce the costs of operations and to maximize output which results in an increased profit margin. Profit margin refers to the gap between revenue and expenses of operations. Operation cost covers all the costs that a company is likely to experience in its activities such as maintenance and the purchase of inputs. In a situation where employees minimize the expenses, the gap between the output and the operational costs increases leading to a rise in profit.
Role of HR on the engagement process
Hiring Based on cultural fit
According to Noe at al., (2006) Human Resource Managers play an essential role in engagement process because they have to ensure that new workers hired in the business have interests that match the culture of the organization. Human resource managers are critical in the hiring process since no matter how candidates may be talented if their needs violate the company’s culture they should not be hired.
Safeguarding culture
After the hiring process, the human resource manager of an organization has a duty of ensuring newly hired workers remain on board with the engagement business culture (Noe et al., 2006). HR acts as a mediator between employees and people occupying hire position giving them the role of ensuring that there is continuous engagement between the stakeholders and employers. HR plays an essential role in communicating the values of a company and what they stand for to the employees thus avoiding any form of misunderstanding that may result in adverse effects on an organization.
References
Harter, J. K., Schmidt, F. L., Asplund, J. W., Killham, E. A., & Agrawal, S. (2010). Causal impact of employee work perceptions on the bottom line of organizations. Perspectives on Psychological Science , 5 (4), 378-389.
Kompaso, S. M., & Sridevi, M. S. (2010). Employee engagement: The key to improving performance. International journal of business and management , 5 (12), 89.
Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2006). Human Resources Management: Gaining a Competitive Advantage, Tenth Global Edition . McGraw-Hill Education.
