Employee Engagement, Organizational Success & Employee Outcomes

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  • 0:04 Employee Engagement
  • 0:40 Profile of Engaged Employees
  • 1:30 Engagement &…
  • 2:28 Engagement & Financial…
  • 3:27 Engagement & Employee Outcomes
  • 5:00 Lesson Summary
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Lesson Transcript
Instructor: Sudha Aravindan

Sudha has a Doctor of Education degree in math education and is currently working as a Information Technology Specialist.

In this lesson, we'll explore engagement as it relates to the organizational success and financial performance of businesses and the retention and attraction of employees.

Employee Engagement

In an employee satisfaction survey, on a scale of 1 to 10, Joe checked 4 for the question about how involved he was in his company's success. Surprisingly this is not an unexpected answer. Most managers feel that their employees are not engaged or involved enough to be enthusiastic and committed to the work they do and to have a personal investment towards the success of the organization they are working for. Companies have to work towards creating an environment to keep employee engagement high so that they can attract quality people and keep productivity and retention levels high.

Profile of Engaged Employees

Susan, Joe's supervisor, was tasked with creating a report about the extent of employee engagement at the company. Susan learned that employee engagement is different from keeping employees happy or satisfied; it is the extent to which employees are interested or motivated in the well-being of their company. After some research, Susan learned that an engaged employee should have some or all of the following profile:

  • Should be self-guided and be able to complete jobs and responsibilities without the need for supervision
  • Should have roles that are well-defined as specified in the job description
  • Should be knowledgeable about how the organization is benefited by their work
  • Should feel that they are a contributing member of a team, and their contributions are valued by the organization
  • Should have opportunities for personal growth and professional development in the organization

Engagement & Organizational Success

As she continued with her report, Susan discussed with upper management to figure out why it was important for the company to have a high level of engagement from the employees. The company management made Susan aware that employee engagement was vital to organizational success, including the growth and success of the company in a number of different areas. These areas include:

  • Leadership qualities: When employees are engaged, they are confident of and are given the opportunity to display strong leadership qualities. This in turn helps increase the quality of work done and drive the organization towards progress.

  • People interactions: When employees are engaged, they are more inclusive and exhibit strong people interactions. This helps maintain job satisfaction and helps promote productivity.

  • Interest in the company: When employees are engaged, they are vested in the best interests of the company and take a personal interest and make contributions geared towards the success of the company.

Engagement & Financial Performance

Susan then decided to focus on another important area that every company needs to focus on: financial success. She did some research on her own to understand how employee engagement can contribute towards the financial performance of the company.

  • Increased profitability: When employees are in tune with the company needs and feel like their contributions have a direct positive effect on the company, they put in more effort, which in turn increases productivity and profitability at the company.
  • Lowered cost of employee turnover: When employees are engaged and feel that they are recognized for their works, they are happy to stay with the organization and grow with it, thus helping to lower the cost of the company for the hiring of new employees.
  • Improved customer satisfaction and increased revenue: When employees are engaged with the company, they are able to help maximize customer satisfaction. This increases the opportunity for repeat sales while at the same time reducing the costs of customer acquisition and marketing.

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