Monday, December 5, 2022

Employee engagement as a retention approach

 According to Lindholm (2013), it has been demonstrated that employee engagement has a favorable effect on organizational performance outcomes such as retention, profitability,

customer loyalty and satisfaction, productivity improvement rates, and risk mitigation through higher safety standards. Similarly, employees who are very enthusiastic and engaged are committed to the success of their firm and are willing to go above and beyond their given duties and the terms of their employment contract to accomplish that goal (Kompaso and Sridevi, 2010).

 The employee engagement was defined as “a positive attitude held by the employee towards the organization and its value. An engaged employee is aware of business context and works with colleagues to improve performance within the job for the benefit of the organization.

The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee” (Dilys Robinson, Sarah Perryman, and Sue Hayday, 2004, p.10). Moreover, employee engagement refers to an employee's positive cognitive processes, optimistic conduct, and pleasant vibe impulses, which motivate him to collaborate effectively with coworkers and corporate goals (Shuck and Wollard, 2009).

I am working for an leading company in the banking industry, and in our organization the drivers of employee engagement include the availability of challenging job tasks, participation in the decision-making process, the availability of resources to complete the job, decision-making authority, career development and growth opportunities, respectable firm reputation as a good employer, customer-focused quality service by the company, senior management's effective goals and visions for future business growth and success, and accountable senior management towards employees’ well-being.

Maslow (1943) contends that individuals frequently have a variety of desires that they aim to satisfy and that in order to boost employee engagement, top management must identify what employees find appealing and what they need the most. Maslow's hierarchy of requirements comprises five fundamental kinds of needs, including psychological needs, safety needs, social needs (love and belonging), reward needs (esteem), and self-actualization needs.

Figure 1

                      (Mcleod,2018)

  Relating Maslow's theory to the challenge of assessing employee engagement provides particularly insightful information regarding the nature of the most successful employee motivating drives (Jerome, 2013).

On the basis of Maslow's hierarchy of needs, the elements influencing employee engagement often include the salary package, job qualities, the supervisor's or management's communication, coworkers, working conditions, job assessment, training and guidance, and promotion prospects (Soelistya, Mashud and Suryanto, 2016).

Furthermore, Kompaso and Sridevi (2010) discovered the following five fundamental methods that lead to a highly engaged employee community: integrating operations with strategy, empowering, fostering and encouraging cooperation and collaboration, assisting individuals in growing and developing career aspects, and providing assistance and appreciation when needed.

Therefore, due to the strong association between Maslow's hierarchy of needs and employee engagement, the organizations can develop a long-term plan for enhancing and maintaining employee engagement and workplace morale (Nguyen, 2020).

References

Dilys Robinson, Sarah Perryman, and Sue Hayday (2004) The drivers of employee engagement 408, employment-studies.co.uk. Institute for Employment Studies, UK. Available at: https://www.employment-studies.co.uk/system/files/resources/files/408.pdf.

Jerome, N. (2013) ‘Application of the Maslow’s hierarchy of need theory ; impacts and implications on organizational culture, human resource and employee’s performance’, International Journal of Business and Management Invention, 2(3), pp. 39–45. Available at: https://www.academia.edu/12099958/Application_of_the_Maslows_hierarchy_of_need_theory_impacts_and_implications_on_organizational_culture_human_resource_and_employees_performance.

Kompaso, S.M. and Sridevi, M.S. (2010) ‘Employee Engagement: The Key to Improving Performance’, International Journal of Business and Management, 5(12). Available at: https://doi.org/10.5539/ijbm.v5n12p89.

Lindholm, R. (2013) Managing Retention by Engaging Employees in a Case Company. Bachelor’s Thesis. Saimaa University of Applied Sciences.

Maslow, A.H. (1943) ‘A theory of human motivation.’, Psychological Review, 50(4), pp. 370–396. Available at: https://doi.org/10.1037/h0054346

Nguyen, T.A. (2020) The key elements impacting employee engagement. Bachelor’s Thesis. TURKU University of Applied Sciences.

Shuck, B. and Wollard, K. (2009) ‘Employee Engagement and HRD: A Seminal Review of the Foundations’, Human Resource Development Review, 9(1), pp. 89–110. Available at: https://doi.org/10.1177/1534484309353560.

Soelistya, D., Mashud, M. and Suryanto, S. (2016) ‘Problems of employee commitment from the perspective of Maslow’s Hierarchy of needs’, Global Journal of Human Resource Management, 4(5), pp. 45–64. Available at: https://www.researchgate.net/publication/325101092_PROBLEMS_OF_EMPLOYEE_COMMITMENT_FROM_THE_PERSPECTIVE_OF_MASLOW'S_HIERARCHY_OF_NEEDS.


14 comments:

  1. Agreed on the above content Nirosha Delgahagoda, Maslow’s hierarchy of needs model conveys how ambitious people are and how they constantly want more but this model does have limitation as this model does not take into account cultural differences, as companies can have multi-cultural workforces and their beliefs will be different from one another. (Borrington & Stimpson, 2013)

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    1. ThanksTharaka, for your valuable input. I agreed to your point.

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  2. Good post and agreed with the content. Further, In the spirit of “work smarter, not harder,” encourages you to step back and let your workers learn to find solutions instead of supplying immediate answers. You can empower your team by asking questions instead of offering your advice, opinions, and suggestions. This approach enables employees to develop problem-solving skills and confidence, which in turn leads to higher levels of engagement. (Michael Bungay Stanier- 2016)

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  3. Hi Nrosha Great article. Employee engagement is based on trust, integrity, two way commitment and communication between an organization and its members. It is an approach that increases the chances of business success. According to Demerouti et al. (2010) emphasized the benefits of work engagement for individuals and for organizations because the way individuals accomplish their work and fulfill their tasks depends on the extent to which they are engaged in their work. Rich et al. (2010) described engaged employees as more attentive and focused on their responsibilities than less engaged employees, as emotionally connected to their role tasks, and as more enthusiastic workers, and other researchers suggested that because engaged employees are also active in social activities and hobbies outside work.

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    1. Thanks Pushpa for your valuable input. I agreed to your point.

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  4. Agreed. The practical applications of Maslow's need theory to every aspect of organizational management are its greatest strength (Greenberg & Baron 2003 p.195). The theory's foundation is on its capacity to offer managers guidance on how to help their staff members or subordinates achieve self-actualization. This is due to the likelihood that self-actualized personnel will produce their best creative work (Kaur, 2013).

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    1. Yes Ranga, Adding to that As employees yearn for social needs, it is the role of organizational culture to create the values and norms that human resource practice will focus on when planning for the smooth running of the organization,
      with employee relationships being one of the key areas that human resources must strengthen (Storey, 1992)

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  5. A great article Nirosha. And also, In today’s constantly changing and demanding business environment, it is crucial for firms to continuously attract and retain talented employees who possess valuable skills, knowledge and capabilities (Ambrosius 2018).

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    1. Thanks for the Input Manodya. Further Also, Employee Retention is not only important just to reduce the turnover costs or the cost incurred by a company to recruit and train. But the need of retaining employees is more important to retain talented employees from getting poached. There are many factors which show the importance of the employee retention Elton Mayo (2003).

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  6. Agreed Nirosha. The concept of employee engagement is a relatively latest one. Most of the organizations feel that employees work for the pay that is being given to them. But this type of thinking is outdated and faulty. There are several other non financial factors that affects the employee engagement like advancement, autonomy, civilized treatment, employer commitment, environment, exposure to senior people, praise, support, the feeling of being challenged and trusted, the feeling of working for a reliable organization, the feeling of working on important assignments and the feeling of respect in work-life balance (Woodruffe, 2006). Most of the major organizations provide tools for assessing the drivers that enhance the employee engagement (Bakker & Schaufeli, 2008).

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  7. Thanks for your input Chathuri, I agree with your comment further one of the best indicators for forecasting employee turnover is employee engagement. Employee engagement is best understood as a reflection of the quality of each person's work life, and employee retention initiatives involve improving the overall workplace experience to retain talent for longer, so a company's retention strategy has a direct and measurable impact on overall engagement. (Radley, 2022).

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  8. Great content Nirosha, I would like to further add that in terms of strategies to retain high performers, an organization should review its vision, mission, and core values to ensure "Strategic Intent" creates a culture where employees see their value and an opportunity to grow, and managers should recognize that including diversity in their workforce is no longer optional, but absolutely necessary for any organization's success (Cloutier, 2005).

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  9. Nirosha, , It is an informative and well-developed post and I agree with the content. To make this exercise more fruitful, I've attached some information from a published paper as well as the source.
    According to research done by Towers Perrin in 2003, improving engagement is a never-ending process that is built on the basis of a meaningful and emotionally fulfilling work experience. In addition, it is not about making people happy or giving them more money. Pay and benefits are critical in luring and keeping employees, but it was discovered that they are less important in fostering employee engagement. Strong leadership, responsibility, autonomy, a sense of control over one's environment, and development opportunities were found to be essential components for engagement.

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Summary

The primary objective of any retention plan is to maintain the lowest feasible turnover rate. Employee retention affects an organization’s p...