Employee engagement (EE) refers to the extent to which your employees believe in the values and mission of the organisation, are committed to their work and will act in ways that further the organisation’s interests. It integrates the well known constructs of job satisfaction and organisational commitment.
It can also be thought of as an emotional or intellectual “attachment” (positive or negative) to their role and the company.
Engaged employees = intellectually focused and/or emotionally connected at work, actively supportive of organisational goals and willing to put more effort into their jobs (Khan, 1990).
Disengaged employees= distant and withdrawn emotionally or intellectually and perform their roles incompletely, without effort or automatically (Khan, 1990).
Understanding Employee Engagement and Its Impact on Performance
You can divide this group into not engaged employees, who feel unhappy at work and perform their roles without energy or passion, and actively disengaged employees, who not only feel unhappy but also underperform and undermine what other workers accomplish through their negativity.
Employee engagement (EE) has received significant attention in job-selection research because researchers link it to key outcomes such as retaining talent, improving individual performance, strengthening team performance and increasing productivity.
In an era where the workforce is highly mobile, with as many as 25% of employees in one sample indicating an intention to change jobs within 12 months, the challenge of retaining good employees is a very real one. Increased competition and globalisation also put pressure on organisations to ensure that their employees present the business in the best possible way to clients and prospective clients.
Most employers want employees who are positive, committed, and productive, but they often struggle to determine whether their staff truly engage and how to boost engagement when it falls short.
What does the research show about EE in the Australian workforce?
In late 2006 the Australian Institute of Management undertook a comprehensive national survey of 2,928 Australian workers including business owners, executives, managers and general staff. They asked them questions about their perceptions of their organisation, their levels of commitment and job satisfaction. A key finding of the research was that meaning, purpose and relationships were key factors in employee retention; strongly outweighing pay and benefits.
Other relevant findings included:
- Overall, most workers had a positive view of their organisation.
- Disengaged employees felt undervalued, performed less well, had lower job satisfaction and higher rates of absenteeism than engaged employees.
- Meaning, purpose and interesting challenges predicted retention of senior managers and positive relationships with coworkers predicted retention of lower-level employees.
- Several factors shape employee engagement, including the nature of the role, the quality of workplace relationships, the organisation’s values and how employees interpret and experience those values.
In late 2008, Gallup Consulting undertook an Employee Engagement survey involving a random sample of 1,000 Australian employees.
Their results painted a somewhat bleaker view of EE within the Australian workforce:
Only 18% of respondents reported that they felt engaged with their organisation, while a huge 61% said they were not engaged and 21% identified as actively disengaged.
Managers and executives showed the highest engagement rates among all employment levels, yet 75% still reported that they were either not engaged or actively disengaged.
The most experienced employees showed the lowest engagement levels, with only 6% of those employed for more than 10 years saying they felt engaged with the organisation. These are likely to be the very individuals that others look to for mentoring.
- The key characteristics that differentiated engaged from disengaged employees were:
- Supervisors focusing on employee strengths
- Supervisors actively facilitating organisational change
- Supervisors being motivating and inspirational
- A trusting and open work environment
Outcomes of engagement (or lack of) included:
- Staff retention – plan to remain with the organisation in the short and long term
- Absenteeism – disengaged employees take an average of 6 extra days off per year
- Productivity – whether an employee worked to their full potential
- Whether they recommended company products and services to others
Costs of disengagement were estimated at a huge AUS$42.1 billion, due to lost productivity, absenteeism and other costs associated with job dissatisfaction.
The need to monitor organisational EE and establish effective strategies to encourage or improve EE is clear. However, while large studies such as those above can provide an overall picture of the importance of EE and the consequences when it is lacking, they do not provide outcomes or guidance that is specific to the needs of your organisation.
How we can help
Several factors shape employee engagement, including the role, the quality of workplace relationships, the organisation’s values and how employees perceive them. These factors are likely to vary greatly between companies.
PeopleMetrics can point you in the right direction. Our Employee Attitudes Surveys give you a clear picture of how engaged your employees are with the organisation and highlight the areas that need more attention.
These well-researched constructs include employee commitment, job satisfaction, employee/organisation values fit, stress, leadership style, climate/culture, trust, perceptions of support and intention to leave.
The survey results can help you guide your organisation to enhance EE, thereby improving commitment and productivity.
You can rest assured that you are in good hands. We designed our surveys using the latest academic and practitioner research. Our academic team, recognised globally as leaders in developing attitudinal and behavioural questionnaires, ensures every survey meets the highest standards.
People are your most important asset. Contact us to find out how to improve engagement of your people in your organisation.
References
Khan, W.A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33(4), 692.
