An ‘engaged’ workforce is widely believed to be desirable for both employees and the organisation, particularly when it is confronting the need to gain stable competitive advantage and enhance organisational performance…
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An accurate definition of ‘engagement’ is needed in order to identify its actual importance to organisations and employees (Torrington, Hall, & Taylor, 2008). However, the best definition depends on the specific circumstances and features of the organisation. MacLeod defines engagement as a process of building ‘mutual respect in the workplace’ (MacLeod & Clarke, 2009, p. 6). He believes that engagement is not only beneficial to the organisation or the employees, but to the nation as a whole. MacLeod views employee engagement as an organisational or corporate strategy intended to make sure that the members of the organisation are committed to its objectives and ideals, driven to contribute to the success of the organisation, and are simultaneously capable of improving their self-respect. The 2012 CIPD Report stated that there are two forms of engagement, namely, emotional and transactional. Emotional engagement takes place when individuals genuinely identify with their organisation and job. It occurs when employees are driven by the desire to perform well at work. On the other hand, transactional engagement refers to a two-way relationship. It appears to be about acknowledging the dynamic involvement of all members of a relationship (e.g. employer and employee). Basically, engagement is characterised as a psychological condition that involves an affective and cognitive aspect, or, feeling and thinking, respectively. Basically, work engagement is a constructive affective and cognitive condition that is stimulated and tends to lead to motivated attitude and behaviour at work (Armstrong, 2006). According to Lucas and colleagues (2007), engagement is a...
Employee engagement has been correlated in different studies to greater innovation and efficiency, lower turnover and number of absences, higher earnings per share, and so on. For example, the study of Corporate Leadership Council (CLC) reported that organisations with a well engaged workforce progress more rapidly than companies with disengaged employees. Likewise, the study of Towers Watson discovered that companies with high levels of engagement experienced an increase in net profit margin and operating margin. Company studies also emphasise correlations between organisational outcome and engagement. The 2005 ISR research reported that organisations with low engagement levels experienced a decline in operating margin and net profit over a 3-year period. The Hay Group reported that specialised service companies with high levels of employee engagement were significantly more efficient. Stanford University reports that employee engagement leads to substantial organisational advantages. Gallup studies found out that engaged employees are more likely to remain in the organisation, more efficient, and friendlier to customers.
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