HRM

1. Employee engagement
•Definition
•History
•Importance/significance
•Methods
•Examples

2. Employee engagement
Employee Engagement is the harnessing of
organization members' selves to their work
roles; in engagement, people employ and
express themselves physically, cognitively, and
emotionally during role performances.”
William Kahn (1990).

3. Employee Engagement Activities
Refers to activities designed to:
•Fd
•Employee Engagement is the harnessing of organization members' selves to
their work roles; in engagement, people employ and express themselves
physically, cognitively, and emotionally during role performances.” William Kahn
(1990).

4. History
• Alexander the Great
• Frederick Taylor
• 70s - Employee Satisfaction
• 90s – Employee Commitment
• 00s – Employee Engagement

5. Importance/Significance
Businesses with more engaged employees have 51% higher productivity
(Harter, J.K., Schmidt, F.L., & HayesT.L., Psychology, 2002 Vol. 87, No. 2)
Businesses with higher engagement have 9% higher shareholder returns
(Towers Watson, 2009)
Companies with the most effective employee communication have 47% higher shareholder returns over the last five years
(Towers Watson, 2010)
Engaged employees outperform disengaged employees by 20-28%
(The Conference Board, 2006)
Organizations with engaged employees showed a 19% increase in operating income over a 12-month period, compared to a 33% decrease in
companies with disengaged employees
(Towers Perrin, 2008)
Employer understanding of the business strategy and how their work contributes to company performance is one of the top drivers of engagement
(The Conference Board, 2006)
Almost two-thirds of all employees are 33% as productive as they could be because they don’t understand what they are being asked to do
(The Conference Board, 2006)
80% of employees with a high degree of trust in management are committed to the organization, compared with 25% of employees with a low degree
of trust
(Center for Creative Leadership, 2009)
In organizations with highly engaged employees the share prices rose by an average of 16 percent compared with an industry average of 6 percent
(Serota Consulting, 2005)
Highly engaged employees have less absence days – in average 3,5 days – compared to not engaged employees
(Gallup Germany, 2011)
A 5% increase in total employee engagement correlates to a 0.7% increase in operating margin
(Towers Perrin 2004 European Talent Survey: Reconnecting with Employees: Attracting, Retaining, and Engaging, Towers Perrin)
Organizations with highly engaged employees achieve twice the annual net income of organizations whose employees lag behind on engagement
(The Impact of Employee Engagement – Kenexa)
In companies where 60 to 70 percent of employees were engaged, average total shareholder’s return (TSR) stood at 24.2 percent; in companies with
only 49 to 60 percent of their employees engaged, TSR fell to 9.1 percent; companies with engagement below 25 percent suffered negative TSR
(Employee engagement at double-digit growth companies, Hewitt Research Brief)

6. Methods
• Visible, empowering leadership providing a strong strategic
narrative about the organisation, where it comes from and
where it’s going.
• Engaging managers who focus their people and give them
scope, treat their people as individuals and coach and
stretch their people.
• There is employee voice throughout the organisations, for
reinforcing and challenging views, between functions and
externally, employees are seen as central to the solution.
• There is organisational integrity – the values on the wall are
reflected in day to day behaviours. There is no ‘say –do’
gap.
- McLeod Report

7. • belief in the organisation
• desire to work to make things better
• understanding of business context and the
‘bigger picture’
• respectful of, and helpful to, colleagues
• willingness to ‘go the extra mile’
• keeping up to date with developments in the
field.
Robinson, D., Perryman, S., Hayday, S. (2004) The
Drivers of Employee Engagement, IES Report 408.

8. Methods
• While it is possible to measure engagement itself through employee surveys, this does not assist in identifying
areas for improvement within organisations. To manage employee engagement upwards, it is necessary to identify
what drives engagement. Some points from research into drivers of engagement are presented below:
• Employee perceptions of job importance - "...an employee's attitude toward the job's importance and the
company had the greatest impact on loyalty andcustomer service than all other employee factors combined."[1]
• Employee clarity of job expectations - "If expectations are not clear and basic materials and equipment are not
provided, negative emotions such as boredom or resentment may result, and the employee may then become
focused on surviving more than thinking about how he can help the organization succeed."[14]
• Career advancement / improvement opportunities - "Plant supervisors and managers indicated that many plant
improvements were being made outside the suggestion system, where employees initiated changes in order to
reap the bonuses generated by the subsequent cost savings."[15]
• Regular feedback and dialogue with superiors - "Feedback is the key to giving employees a sense of where they’re
going, but many organizations are remarkably bad at giving it."[14] "'What I really wanted to hear was 'Thanks. You
did a good job.' But all my boss did was hand me a check.'"[12]
• Quality of working relationships with peers, superiors, and subordinates - "...if employees' relationship with their
managers is fractured, then no amount of perks will persuade the employees to perform at top levels. Employee
engagement is a direct reflection of how employees feel about their relationship with the boss."[16]
• Perceptions of the ethos and values of the organization - "'Inspiration and values' is the most important of the six
drivers in our Engaged Performance model. Inspirational leadership is the ultimate perk. In its absence, [it] is
unlikely to engage employees."
• Effective internal employee communications - which convey a clear description of "what's going on". "'
• Crim, Dan and Gerard H. Seijts (2006). "What Engages Employees the Most or, The Ten C’s of Employee
Engagement" . Ivey Business Journal. Retrieved2013-01-24.