The Crucial Importance of Employee Engagement - Research Proposal Example

Brief Literature Review: “When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.” Simon Sinek Employee engagement is fast becoming one of the most valued concepts within the field of management, especially given its contribution and potential in understanding and enhancing individual productivity. Organizations today are in need of a valuable and highly productive workforce than ever before, considering the increased globalization and increasingly competitive markets (Concelman, 2005). Various studies conducted over the years have indicated a strong and positive relationship between employee engagement and increased / improved productivity. Better individual employee involvement is perceived as a pre-requisite for improved engagement. Hence strategies that link improved performance with individual benefits such as increased pay, or bonus, better working conditions etc., results in generating higher individual productivity (Storey, Wright, Ulrich, 2009: p. 116). However, regardless of its immense potential, the concept of employee engagement continues to be elusive (Gibson, 2006; Harter et al., 2002; Macey & Schneider, 2008). Employee engagement is known to generate positive outcomes including increased productivity, improved performance, safer and healthier employees, reduced absenteeism, as well as increased employee retention (Fleming & Asplund, 2007; Wagner & Harter, 2006). However regardless of the positive impact of employee engagement merely 30 per cent of the total workforce worldwide was estimated to be investing in the concept (Harter et al., 2002; Saks, 2006; Wagner & Harter, 2006). Furthermore studies have also indicated that more than 60 per cent of the world’s total workforce is emotionally less involved in their respective jobs indicating low levels of employee engagement (Shuck & Wollard, 2008). Such wide disparity between the need for employee engagement and lack of efforts on the part of the management to ensure increased employee involvement has resulted in immense losses to the U.S. economy amounting to $ 300 billion dollars annually (Fornes, Rocco, and Wollard, 2008). Evidence suggests that despite the rising popularity of the concept of employee engagement within the field of management it continues its downward spiral (Shuck & Wollard, 2008). However employees across the globe continue to rate employee engagement higher than any other element needed for organizational development and success (Ketter, 2008). The drastic changes that have taken place in the global market space and the sudden rise in competition, managing change has become one of the most crucial aspects of organizations. However such change management cannot be simply achieved through conventional strategies such as training the employees and preparing them to address work-related challenges. It entails implementation of effective strategies that involve transitioning of the employees as knowledge workers to employee engagement. This is because employee engagement is known to positively influence increased performance and productivity (Concelman, 2005). In a study carried out by Harter, Schmidt, and Hayes (2002) to study the relationship between workplace productivity and employee engagement, it was observed that employees that showed high levels of involvement were found to be relatively more satisfied with their jobs and displayed higher levels of productivity as compared to their counterparts. Erickson (2004) pointed out that one of the most effective ways of ensuring higher productivity and to influence the employees to perform better at their respective jobs is to focus on strategies aimed at improving employee engagement. The concept of employee engagement entails the inherent beliefs of the employees in the mission, vision and values endorsed by their organizations which in turn lead them to become highly committed towards the achievement of organizational activities and goals (Stockley, 2006). However for the employee to display high levels of commitment and involvement in their organizations it is imperative for the management to ensure that proper rewarding systems are implemented to encourage and motivate the employees. Such systems not only act as motivating tools but also enable the employees to form a positive and meaningful relationship with their supervisors / managers resulting in increased job satisfaction and hence productivity (May, Gilson, and Harter, 2004). One of the first studies to observe and emphasize the significance of engaging people as a pre-requisite for achieving improved performance was the Hawthorne Effect. In a study carried out at the manufacturing unit of Western Electric Companys Hawthorne, Illinois, plant in the early 1920s it was observed that a change in working conditions has a direct and significant impact on productivity. It was proposed / hypothesized that a slight change in lighting conditions at the plant would help the workers in improving their productivity. The reverse impact was also studied to prove and substantiate the hypotheses. It was observed that reducing the lighting in fact led to improved productivity. This experiment helped in understanding the impact of employee engagement and the effect of attention given to the employees by the organizations. The employees at the Hawthorne plant were aware of the managements expectations and were motivated to perform better (Moore, 2011: p. 56). Description of research idea and its importance: 2-4 pages The recent global recession has had a significant negative impact on the psyche of the employees, mainly due to increased layoffs, pay cuts, and unemployment. The drastic fall in employment opportunities and increased layoffs and pay-freezes resulted in heightened job insecurity among the employees in turn amounting to increased work-related stress. Such state of the employees has made it increasingly difficult for the organizations to motivate the employees to perform better. Hence it is highly imperative for the managers to implement strategies that seek employee involvement by engaging them in the desired behaviors (Galford & Drapeau, 2003). Such strategies are highly crucial given the dynamic and highly volatile economic market condition in which the organizations are required to operate. Activities that tend to improve employee engagement and capitalize on their strengths can prove to be highly rewarding for organizations in this highly constrained economic environment (Harter, Schmidt, and Keyes, 2002). Such efforts not only ensure short-term survival of the organizations during times of economic volatility but also enable long-term and positive relationships between the employees and the managers, in turn resulting in improved job satisfaction and by extension increased productivity. Organizations that succeed in improving employee engagement levels are likely to have an edge over their competitors which can enable them to succeed and maintain their competitive positioning in the industry. In the information age, human resource has emerged as one of the profitable and sought-after assets to organizations across the globe. This is mainly due to the increased need for creativity and innovation. Talented pool of highly motivated employees can hence generate greater revenues and ensure organizational development in the long-run (Latham & Ernst, 2006). As companies struggle to emerge from the shock of current recessionary pressures, investing in strategies that encourage employee engagement is likely to offer the much needed respite both – for the organizations as well as employees alike. Organizations have now started gradually moving away from strategies aimed at cost reduction such as layoffs and pay freezes towards more positive strategies aimed at investment and growth. Such shift in the organizational strategies indicates the willingness and ability of the organizations to seek greater employee involvement and provide them with the much needed sense of job satisfaction and security. The ability of the organizations to invest in strategies aimed at improving employee engagement levels indicates its likelihood of increasing profitability in the near future (Tomlinson, 2010; Woodruffe, 2006). According to Wright & Cropanzano (2000) a highly motivated and involved group of employees are likely to deliver consistently above and beyond the expectations of the management. Significance and Need: Statistics indicate that employee engagement levels are low across the globe including North America and Europe. According to the statistics made available by the Canadian Human Resource Centre, the employee engagement levels continue to remain dangerously low despite increasing evidence in its favor. Merely 25 per cent of the total work force in the country was found to be actively engaged and motivated while 60 per cent of them continue to remain disengaged. Such statistics are alarming considering the negative repercussions it is likely to have on the organizational growth and development in the long-run. Source: Canada Human Resource Center In a highly competitive business environment where organizations are likely to overrun by their rivals, it is extremely crucial to not only hire talented individuals but also ensure that they contribute effectively towards organizational growth. The inability of the organizations to actively engage their employees is likely to result in reduced employee retention which in turn can demoralize the other employees resulting in lower job satisfaction and increased job-insecurity. This study aims at offering meaningful and comprehensive insight into the various issues and trends related to the concept of employee engagement and the manner and extent to which it influences individual productivity. Employees are a crucial and valuable asset to the organizations and are imperative for ensuring organizational success and development. Hence their engagement or involvement in organizational activities are likely to strongly impact organizational success. The study of literature and research studies carried out over the years is likely to add to the existing knowledge regarding the concept of employee engagement and the various strategies that can be employed by the management to improve engagement levels of their employees. This study concludes with the recommendations and suggestions for the leaders / managers that can help them in improving the employee engagement levels and ensure greater profitability and productivity in the process. Description of research methods and data analysis proposed: 2-4 pages What is Employee engagement? (IV) The concept of employee engagement was first developed by Kahn (1990) who described the term as an intimate involvement of the employees with their respective organizations. According to Harter, Schmidt, and Hayes (2002) employee engagement refers to the “individual’s involvement and satisfaction with as well as enthusiasm for work” (p. 269). Harter et al., (2002) states that engaged employees are more emotionally connected with their colleagues and superiors and are highly vigilant about the organizational goals and their contribution within the team. Employees can be encouraged to be involved in organizational activities by providing them the required resources to accomplish their assigned tasks effectively, providing them ample opportunities for seeking personal growth, providing them timely feedback on their performance, and acknowledging and rewarding their contributions. Definition: According to Cook (2008) the term employee engagement refers to the commitment displayed by the employees to their respective organizations "believing in what it stands for and being prepared to go above and beyond what is expected of them to deliver outstanding service to the customer" (p. 3). The concept of employee engagement was first defined by Kahn (1990) as "the harnessing of organizational members selves to their work roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during role performances" (p. 694). Schaufeli et al (2002) defined the term as "a positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, and absorption" (p. 74). How is it operationalized (applied in organizations)? The concept of employee engagement is operationalized in disparate ways. Engaged employees are known to express themselves in various ways including physically, emotionally as well as cognitively while performing their assigned tasks. They are more expressive and participate actively in organizational activities. Another related construct to employee engagement within organizations is the concept of flow. The term flow refers to the increased levels of involvement of the employees in organizational activity to such an extent that the distinction between the self and the environment is blurred. How is it measured? There is no single universally accepted method for measuring employee engagement. It is measured differently by different organizations. These include surveys, observation of behavioral outcomes, study of key elements of employee engagement such as pride, job satisfaction, retention etc., among others (Macey & Schneider, 2008). Another key method of measuring employee engagement is the use of Likert’s five point agreement scale (Albrecht, 2010). Also the Gallup’s G12 feedback method is widely used for measuring employee engagement. Individual Productivity (DV) The term individual productivity refers to “the level of productivity attained by a single person” (Griffin, 2012: p. 621). Statistical Techniques The method chosen for the purpose of this study include a survey comprising of 120 participants. The sample size will be determined using the Cochran sample size formula. The participants will be selected using random sampling. The responses of the participants will be collected via questionnaire survey on the two key variables. The questionnaire will be divided into two main categories wherein Part I will include data regarding demographic characteristics of the participants i.e., their age, gender, work experience, designation etc. This data will be analyzed using descriptive statistics. Part II of the questionnaire survey will comprise of a combination of questions for each of the variables i.e., the independent variable (employee engagement) and the dependent variable (individual productivity). Each of the items will be analyzed using the five point Likert scales. The statistical tests proposed to be used for the purpose of this study include the t test and multiple regression analysis. The t test will be carried out to ascertain the variance between the two engagement measures and the multiple regression analysis will be used to test the research hypotheses as well as to examine and analyze the key drivers of employee engagement that contribute most significantly toward improving individual productivity. Description of conclusions which may be drawn from proposed study: 1-2 pages Based on the statistical analysis and literature reviewed it can be safely concluded that employee engagement results in improving individual productivity, increases employee retention, employee loyalty and commitment, and increased profitability. Furthermore it can also be concluded that the engaged employees are more likely to contribute positively toward organizational development as compared to their counterparts with low engagement levels. The study of the literature also provides interesting insights into the key challenges faced by organizations with regard to employee engagement. Large multinational organizations are far more likely to face greater difficulties in acheiving high levels of employee engagement as compared to smaller ones. Furthermore it is also observed that leaders and managers are under increased pressure to offer challenging job opportunities to the employees to retain their involvement and interest levels and ensure improved performance. Furthermore one single strategy cannot be applied across all employees to improve engagement levels. Different employees react differently to such strategies based on their age, gender, designation etc. Hence it is imperative for the managers to carefully study the backgrounds of the employees prior to implementing strategies. The study also helped in drawing attention to the implications of the research. For instance, the research clearly indicates the widespread differences in levels of employee engagement across organizations depending on their demographic characteristics. It would be crucial to carry out further research to explore the manner in which other critical factors such as emotional and psychological in improving employee engagement and its consequent impact on performance and productivity. References: Albrecht, S. L., (2010). Handbook of employee engagement: Perspectives, issues, research and practice. London, England: Edward Elgar Publishing. Cook, S., (2008). The essential guide to employee engagement: Better business performance through staff satisfaction. London, England: Kogan Page Publishers. Concelman, James (2005), “Referee Bosses give Leaders a Bad Rep”, Employment Relations Today, Vol. 32 (1): p. 48 - 52. Erickson, T. J. and Gratton, L. (2007), “What it means to work here”, Harvard Business Review, Vol. 85 (3): p. 104 - 112. Fleming, J. H., & Asplund, J. (2007). Human sigma. New York: Gallup Press. Fornes, S. L., Rocco, T. S., & Wollard, K. K. (2008). 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(2006), “The Crucial importance of Employee Engagement”, Human Resource Management International Digest, Vol. 14 (1): p. 3 - 5 Canada Human Resource Center (2014) [Online] Available at: [Accessed: June 10, 2014] Read More