Changes in Executive Perspective on Employee Engagement

Instructor: Saranya Ramachandran

Saranya has a Bachelors in Science focused on Electronics and Telecommunication and a Masters in Business Administration. She has 8 years of Project Management Experience and is PMP Certified.

The lesson discusses how company executives have started to pay more attention to employee engagement over the last few decades, and how this has become important to growth of businesses.

Disengaged Employees

Nicole is the CEO of Angry Chocolates and she recently noticed some trends among her employees. There seem to be more employees falling sick and taking leave, and lately they're gossiping negatively about the company a lot more. These things are negatively affecting their productivity, and Nicole's employees are showing little initiative to improve.

Angry Chocolates' HR Manager, Leslie, suggests that these trends could be a sign that the employees are disengaged. She shows Nicole how executives' perspective on employee engagement has changed in recent years, and how this has helped other companies.

Growing Emphasis on Employee Engagement

Employee engagement is a phrase that was initially coined in 1990s. In simple terms, employee engagement describes the level of involvement employees feel in their job, and their desire to contribute positively towards the growth of the organization. Prior to the turn to employee engagement, terms like morale or job satisfaction were more widely used.

A recent survey done by Deloitte, a professional services company, revealed a few important factors relating to employee engagement. The revenue that businesses lose over decreased productivity due to disengagement is estimated to be about $300 billion. Employee retention is something that a lot of organizations struggle with, and engaged employees are about 87% less likely to leave the organizations. They're also about 57% more effective at their tasks.

Engaged employees are thus shown to be more productive and effective. In other words, when employees are engaged, they make more efforts to improve the operations of the company and operational efficiency increases.

Studies like Deloitte's have contributed to the change in executive perspective towards employee engagement. As a result, other researchers have found a 13% increase among executives and 35% among managers in the perspective that employee engagement is very important.

Now that Nicole see the successes other businesses have had as they've started to value employee engagement more over time, she is motivated to make a change.

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