This article is written by Usha Kiran Demta pursuing Diploma in Strategic HR for Startups and Emerging Industries. 

This article has been published by Sneha Mahawar.

Introduction

Organizations around the globe are facing an inevitable challenge to enhance their ability to meet the ever-changing customer demands, and to fulfill this very essence, businesses require Human capital, i.e., a diverse workforce that is able to accomplish the changing demands of the customer market. Longevity to stay in the market and provide the best customer service is what makes great organizations differentiate from their competitors. Organizations need self-driven goal focused, upskilled employees, and this is exactly where the term employee engagement comes into the picture. To add to the current competitive market, the advancement of new Technology such as AI and ChatGPT has made it all the more evident for Organizations to focus on their present employee engagement activities. You need a highly engaged workforce that can not only perform but also outweigh your organization’s performance and excellence.

Effective employee engagement works out as a reflector of an organization’s performance, i.e., the higher the level of employee engagement in the organization, the higher the chances of the organization meeting the set goals. Several studies and surveys around the Globe have outright explained the significance of employee engagement in all business units. Gallup Surveys have clearly defined how employee engagement is directly attributable to an organization’s high performance. These surveys/researches are based on scientific linkage to critical performance indicators, which explains how businesses with a high degree of employee engagement have a fair 83% chance of performing well as compared to businesses with a low degree of employee engagement, which have only a 17% chance. A survey conducted by Watson Wyatt Worldwide concluded that highly engaged employees result in 26% higher overall revenue.

Employers now understand that employee engagement is one of the fundamental principles that allow businesses to exist and flourish. It is one of the tools that minimizes the attrition rate. They are emphasizing increasing employee engagement and thereby decreasing the high revenue costs incurred due to disengaged employees, who overall act as a liability for the Organization.

Evolution of the Concept of Employee Engagement – Organizational psychologist William Kahn (1990) is called the father of employee engagement. His theory is based on three psychological conditions: meaningfulness-does an employee find his work meaningful, safety- does the employee safe in the work environment?—and availability-is the employee able to completely harness his mental and physical selves at the present moment?

Kahn’s theory of employee engagement has a threefold impact on an organization: first, customer happiness; second, high employee retention; and last but not least, employee satisfaction.

Definition of employee engagement

In simple words, one can explain employee engagement as engaged employees in an organization or business unit who are motivated, dedicated, and emotionally attached to the Organization. Employees who understand the basic core philosophy and values of the Organization and how focused they are on helping their organization’s growth and profit Engaged employees know what is going on in their organization, they thrive to assist the goals of their organization, and they add value to the Organization.

Employee engagement is a two-way process. Employees tend to be engaged in those Organizations that are focused on their overall well-being. It is a process that establishes a relationship between an employee and employer where both are interdependent and sentimentally attached to each other. Engaged employees tend to stay for a longer duration in an organization in comparison to disengaged employees. The graph trends for exiting employees are dramatically low in organizations where employee engagement is given precedence like any other process in the organization.

Role and importance of an HR manager in effective employee engagement

The prime onus of implementing an effective and result oriented employee engagement program entirely lies with the HR manager. HR managers are the Action takers to foster effective employee engagement. Some of the key roles that a HR manager plays in employee engagement are enumerated below:

• Prime focus lies with HR on attracting engaged employees, i.e., new employees entering the Organization must understand their FIT in the organization.
• The first bonding or interaction a new employee has with the organization is through onboarding. HR managers can make onboarding an engaging activity and add human touch to the process, which makes the new person more drawn to and inclined to the organization’s culture.
• HR managers need to emphasize the importance of providing budget provisions for employee engagement. Employers must understand that employee engagement is a continuous and ongoing process that runs parallel to the core business.
• HR managers are supposed to audit the existing employee engagement programs and focus on sustained engagement. They need to conduct gap analysis, identify the issues with respect to the current engagement program, and try to abbreviate the gaps with activities that supplement and enhance employee engagement.
• HR managers need to talk, listen, and get feedback from employees about how they feel about their organization and what resources, facilities, and activities make them proud to be associated with it.
• The feedback gathered needs to be statistically analyzed, and employee engagement data is required to be prepared and periodically monitored. An employee engagement program can only be effective when it is not considered merely an annual feedback activity.
• HR managers require the data to be maintained and monitored, but the prime focus is to be on developing the employees and building their passion and commitment to the Organization.
• Compensation is definitely an important motivator for an employee to stay in an Organization that pays him well, but as per the recent Harvard Management Update, the New Retention strategy is focusing on Individuals. The study states that all employees cannot be judged on the same parameters. One employee may really enjoy the compensation benefits, and another may like to go with the low wages but appreciate the career growth opportunities. Therefore, employee engagement cannot solely focus on the compensation part attributed to high employee engagement.
• HR managers must ensure that they differentiate between monetary and non-monetary rewards to have effective employment engagement. A simple rule to be followed when providing monetary rewards is “Strike the iron while the hammer is hot.” Non-monetary rewards such as pats on back, best employee of the week, Organization paid vacations, free food coupons, etc. all boost and drive the employees to endeavor to perform better every time. At the same time, HR managers must keep an eye out so that only strong performances are recognized and rewarded. Mediocre performance rewards lead to monotonous work, which in the long run will be futile.
• Employees love to stay with organizations that facilitate and promote career growth by developing and acquiring new skills. A proper assessment needs to be carried out in the present scenario of AI technology, in which new technical skills are required to be imparted to the deserving employee workforce who can upskill themselves and effectively implement their new technical knowledge.
• HR managers must focus on the fact that employees are doing meaningful work and understand what and why they are doing. Expectations must be clearly identified regarding the performance and responsibilities assigned to them, i.e., to define clear performance management activities.
• Work life balance plays an important role nowadays, and during COVID times, employees now very well understand the culture of hybrid work. Employees know the concept of working from home and how this can be utilized to maintain a work life balance. HR plays a role in facilitating such flexible work arrangements.
• HR managers are required to allow employee participation to enhance employee engagement. Employees feel valued and recognized in an organization when their suggestions and ideas are implemented.
• HR managers play a vital role in designing a personalized and tailored employee engagement program. Employee engagement varies from organization to organization, and the metrics and parameters to be defined vary for each organization. It is exactly here where HR comes into the action of designing an employee engagement program that, at one end, caters to the needs and requirements of employees, keeping them happy and bragging about their organization, and, at the other end, enhances productivity, profitability, and customer ratings.
• Employee engagement programs must not be enforced on employees; they should be designed and implemented in a manner that simply flows, blends, and paves their way into existing work culture. HR managers have to ensure that the learning systems are not controlled and are inexorably accepted by the employees.
• HR managers are the first line of contact for employees when they face any issue or aren’t happy about any work situation. Employee engagement is to be designed as Engagement by employees towards the work through self-reflection and positioning themselves in the organization.

Conclusion

Employee engagement trends are still in the evolving phase, and they will continue to evolve and project new concepts of employee satisfaction. Employees now entering organizations are from the Z generation, who seek parity in every sphere, whether it be monetary or non-monetary benefits. Young employees tend to have a growth mindset that is not confined to money only. Now employers understand that mere production of services cannot be the only parameter to make them thrive and flourish in the competition; one has to have upskilled employees who can contribute to new ideas and innovations and give employers an edge over the competitors. Young employees are passionate and more pragmatic, organizations require employee engagement to keep them connected to their work profiles

No doubt the COVID situation has demanded a 360-degree review of the existing processes, but at the same time, employers have also understood that it’s the engaged masses who keep on running the businesses even in difficult economic times. In the recent decade, Employee engagement has promoted a strong participatory culture in organizations and has universally vouched for “Bringing out the best in people.”

In a 2015 interview with Workforce Magazine, William Kahn summarized how managers could apply his theory:

“Approach employees as true partners, involving them in continuous dialogues and processes about how to design and alter their roles, tasks, and working relationships—which means that leaders need to make it safe enough for employees to speak openly of their experiences at work.”

References

• https://www.cambridge.org/core/journals/industrial-and-organizational-psychology/article/abs/leveraging-employee-engagement-the-practical-implications/2E0D218F3A2C917B89718F20932E308C
• https://blog.workday.com/en-us/2018/how-william-kahn-revolutionized-employee-engagement-work.html
• http://businessjournal.gallup.com/content/163130/employee-engagement

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