Sunday, December 6, 2020

Benefits of Employee Engagement and Recognition

 

Financial and non-financial benefits have a major impact on employees' job motivation and their level of job satisfaction (Desenzo and Robbins, 2010; Hale, 2009; Severinson & Hammelwall, 2001). Recognition plays a major role, and it could be simply classified as appreciating and accepting their hard work. (Caligiuri et al., 2010; Nelson, 2005; University of Iowa, 2009).  According to Gostick and Elton (2007), It could even be in the form of a personal note to show how important that employee is.

 

Figure 05: The Benefits of Employee Engagement:

Source: (Harter, 2002)

1. Higher Employee Satisfaction: Employee satisfaction is crucial to the success of a company. High employee satisfaction is directly related to low turnover. Therefore, maintaining employee satisfaction should be a priority for every employer (Gregory, 2011). Ex: Sri Lanka  Insurance company has a strong leadership team and dedicated employees are dedicated to the company’s success, and in recent years have helped drive rapid business growth (srilankainsurance.com, 2019 p52)

2. Higher Retention and Lower Turnover: Employee turnover and increase retention higher Productivity: Engaged, motivated workers have higher employee satisfaction, which leads to enthusiasm in employee job role and overall company growth in the form of higher retention and lower turnover; higher productivity (Sundaray, 2011). Ex, according to Ceylon Tobacco Company as competition for good people intensifies, they need to build a strong and clearly differentiated reputation as an employer. For many people, the attractions of a rewarding career with a major international business that values their contribution and supports their professional learning and development, are key factors in their decision to work for Employer (ceylontobaccocompany.com, 2020).

3. Increased Profitability: Through suggestions, based on key factors to increase employee engagement and productivity. The organization successfully attracted customers and employee’s profitability (Heymann, 2015).

4. Less Absenteeism: When employees are absent, work does not get done. The availability of care for sick children reduces work/family conflict which, in turn, results in less absenteeism engaged employees take less sick days—not only because employees want to be at work (Goff, at al, 1990).

5. Increased Employee Loyalty: Maintaining the loyalty of survivors in a scaled down environment is a challenge management practitioner. Theorists suggest empowerment and rich work is the mechanism (Brian et al, 2001).

Video 07:  Benefits of Employee Engagement

Source: (The Benefits of Employee Engagement, 2019)

Video 07 describes, why does employee engagement matter? The answer is cushy. Whether you know it or not, your company’s bottom line depends on the satisfaction and happiness of your employees. Increased satisfaction and happiness always lead to better retention as well as increased productivity and profitability.


 Recognition or appreciation of one’s work could lead to job satisfaction and build self-confidence (Keller, 1999).  According to Allen and Helms’ (2002) research’s finding has come to light that regulation appreciation could help the organization achieve goals and targets.

The ways of recognition

Recognizing or accepting of an employee’s hard word does not necessarily have to be of monetary value. It could be a way of mentioning the individuals name is the team meeting, huddle or even in a firm wide email. Posters, banners or even in a notice board in the front area of the office premises would help employees feel appreciated (Darling et al., 1997; Nelson, 2005; University of Iowa, 2009).

According to a member of customer success team at 6Q in Australlia, (R, 2019), employees could be recognized in many ways.

• Top employee of the month

• Employee recognition programs

• Having them posted in the company’s annual calendar

• Firm wide email/social media

• Company’s magazine or journal article


Video 8.0: Employee Recognition

(Source: CommLab India, 2011)

According to below video 8.0: states that It is always great when an employer is able to recognize an employee’s contributions. While bonuses and raises are certainly popular and well-received, there are many other ways to show your appreciation on their hard work. Be creative and consider options such as a catered lunch, paid time off or an employee party. Even the gesture of personally thanking employees for a job well done will go a long way toward keeping your team engaged and motivated. 


List of References:

 

Allen R. and Helms M. (2002). “Employee perceptions of relationships between strategy rewards and organizational performance”, Journal of Business Strategies, Vol. 19, No. 2, pp. 115-139.

Caligiuri P., Lepak D. and Bonache J. (2010). Global Dimensions of Human Resources Management: Managing the Global Workforce, Hoboken, NJ: John Wiley & Sons, Inc.

Creative Ways to Give Employee Recognition. (2011). [video] CommLab India.

Darling K., Arm J. and Gatlin R. (1997). “How to effectively reward employees”, Industrial Management, Vol. 39, No. 4, pp. 1-4. DeCenzo D. A. and Robbins S. P. (2010). Fundamentals of Human Resource Management (10th ed.), Hoboken, NJ: John Wiley & Sons, Inc.

DeCenzo D. A. and Robbins S. P. (2010). Fundamentals of Human Resource Management (10th ed.), Hoboken, NJ: John Wiley & Sons, Inc.

Gostick A. and Elton C. (2007). The Daily Carrot Principle: 365 Ways to Enhance Your Career and Life, New York: Simon & Schuster.

Goff, S.J., Mount, M.K. and Jamison, R.L., 1990. Employer supported childcare, work/family conflict, and absenteeism: A field study. Personnel psychology, 43(4), pp.793-809.

Gregory, K., 2011. The importance of employee satisfaction. The Journal of the Division of Business & Information Management, 5, pp.29-37.

Heymann, M., 2015. Spotlight on service: Integrating workforce management with employee engagement to optimize customer satisfaction and profitability. Global Business and Organizational Excellence, 34(5), pp.6-12.

Keller J. M. (1999). “Motivational systems”, in: H. D. Stolovitch & E. J. Keeps (Eds.), Handbook of Human Performance Technology (2nd ed.), San Francisco: Jossey-Bass/Pfeiffer, pp. 373-394.

R, H. (2019). 7 Awesome Methods for Employee Recognition. [online] The 6Q Blog. Available at: https://inside.6q.io/7-awesome-methods-for-employee-recognition/ [Accessed 26 Sep. 2019].

Sundaray, B.K., 2011. Employee engagement: a driver of organizational effectiveness. European Journal of Business and Management, 3(8), pp.53-59.

University of Iowa (2009). “Reward & recognition”, available online at: http://research.uiowa.edu/pimgr/?get=reward.

8 comments:

  1. According to Penna research report (2007), meaning at work has the potential to be valuable way of bringing employers and employees closer together to the benefit of both where employees experience a sense of community, the space to be themselves and the opportunity to make a contribution, they find meaning.

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    Replies
    1. Hi Kanishka, I agree with what you stated. but according to Alfes et al (2010: 2) asserted that engaged employees perform better, are more innovative than others, are more likely to want to stay with their employers, enjoy greater levels of personal well-being and perceive their workload to be more sustainable than others.

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  2. When employees are rewarded for their contributions, they feel ownership and pride and are willing to work just as hard on their next project. Recognition connects them to the organization, elevates performance, and increases the likelihood they’ll stay. This article lays out how to give the kind of recognition that will truly make a difference in employee engagement, performance, and retention. The old-school line of thinking says that employees shouldn’t need recognition to succeed. They should be motivated to keep their job and increase their salary. There’s some truth to that- employees should take pride in their work and be motivated for reasons other than praise. But spotlighting strong performance is the frosting on the cake. It transforms a satisfied employee into one who actively pushes for greater things. (Andriotis N. 2017)

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    Replies
    1. Thank you Melissa, in return to the employees handwork, the employer pays a reward or a benefit which is the most expected thing in an organisation (Agarwal, 1998).

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  3. Gallup organization defines employee engagement as the involvement with and enthusiasm for work. Gallup as cited by Dernovsek (2008) likens employee engagement to a positive employees’ emotional attachment and employees’ commitment.

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  4. As a concept that has developed over time, engagement has been defined in numerous, often inconsistent, ways in the literature, so much so that the term has become ambiguous to many and it is rare to find two people defining it in same way (Macey and Schneider, 2008). The importance of defining terms such as engagement was highlighted by Rotter, who suggested that different meanings that are read into the term result in considerable variation in what is being measured, which ‘produces a series of contradictory and non‐replicable studies’ (IES, 2009).

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  5. Most references relate employee engagement to survey houses and consultancies. It is less taken as an academic construct. The concept is relatively new for HRM and appeared in the literatures for nearly two decades (Rafferty, Maben, West and Robinson, 2005; Melcrum Publishing, 2005; Ellis and Sorensen, 2007). The construct, employee engagement emanates from two concepts that have won academic recognition and have been the subjects of empirical research-Commitment and Organizational Citizen Behaviour (OCB) (Robinson, Perryman and Hayday, 2004; Rafferty et al., 2005). Employee engagement has similarities to and overlaps with the above two concepts.

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  6. Engaged employees work effectively and efficiently for the organization And the technology adds more fun to the employee engagement and the team-building of the employees. As employees are virtually connected with each other through digital platforms. Driving online employee engagement activities could be one of the most important factors for the organizations

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