Benefits
of Employee Engagement and Recognition
Monetary and non-monetary rewards has a major effect
on employee job motivation and their satisfaction level towards the job (De
Cenzo et all., 2010). Recondition 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
employees is.
Video 1.0 - Important stats to remember
about employee appreciation and recognition is shown on this video clip
Source – (Semos cloud, 2019)
Measuring the Benefits
of Employee Engagement
It’s well known that employees’ attitudes toward the organization have a
significant effect on how they approach their jobs and how they treat
customers. But recent research also suggests that high levels of employee
engagement are associated with higher rates of profitability growth (Kumar, V. &
Pansari, A. 2015)
Investing in employee recognition
Recognition
is a vital component of an organization’s total rewards programme and is
instrumental in reducing employee turnover, increasing productivity and
creating a positive work environment. When employees realize their
contributions to a company's success are important, they are more likely to
embrace the organization’s mission, goals and values (Thomas, C. 2017)
As such, it
is essential that the recognition scheme defines, acknowledges and reinforces behaviors,
which support the strategic aims and cultural values of the company. This
creates a positive feedback loop, which drives overall business performance
(Thomas, C 2017)
Source – (Thomas, 2017)
Optimizing Perceived Organizational Support (POS) to Enhance Employee Engagement
Today’s changing work
environment, replete with job uncertainty and frequent mergers and
acquisitions, contributes to a lack of trust and concern for the mutual welfare
between employees and employers (Robert, E. & Glenn, P. 2016).
Many employers have yet to
fully understand the central importance of favorable relationships with
employees to reducing absenteeism as well as enhancing dedication to
organizational objectives and increasing performance.
For the benefit of
employees and organizations alike, it is crucial for organizations to recognize
employees as valuable sources of human capital. Perceived organizational
support (POS) - an employee’s perception that the organization values his or
her work contributions and cares about the employee’s well-being-has been shown
to have important benefits for employees and employers (Robert, E. & Glenn,
P. 2016).
For instance, studies
have found that employees with high POS suffer less stress at work and are more
inclined to return to work sooner after injury (Shaw et al., 2013).
Perceived organizational
support (POS), involving the extent to which employees feel the organization
values their work contributions and cares for their well-being, provides an
important tool for this objective (Shaw et al., 2013).
Evidence-based research
consistently shows that POS is linked to employees’ increased psychological
well-being and performance plus reduced absenteeism and turnover (Shaw et al.,
2013).
Eight tactics for enhancing POS (Robert, E. & Glenn, P. 2016).
1. Implement
supportive workforce services that are discretionary -“Don't just do the things
you are required to do.”
2. Be
fair and equitable in the making, monitoring and enforcement of all management
practices.
3. Set
achievable goals and reward proportionately.
4. Offer
individualized benefits -“Learn and provide the type of support your workers
and workforce needs.”
5. Support
supervisors so they will foster POS in their subordinates.
6. Train
subordinates to be supportive.
7. Promote
strong social networks.
8. Begin
organizational support prior to the start of employment.
The eight HR tactics we
have presented will encourage employees to perceive that the organization
values their contributions and cares for their well-being. POS has benefits for
employers by enhancing employees’ positive beliefs and attitudes about the
organization. As a result, employees are more likely to be emotionally
committed to the organization, inclined to increase performance and less likely
to be absent or leave the organization (Robert, E. & Glenn, P. 2016).
References
Armeli, S., Eisenberger, R., Fasolo, P., & Lynch,
P. (1998). Perceived organizational support and police performance: the
moderating influence of socioemotional needs. Journal of Applied Psychology,
83, 288-297.
Caligiuri, P., Lepak D. and Bonache J. (2010). Global
Dimensions of Human Resources Management: Managing the Global Workforce,
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.
Kumar, V. and Pansari, A. (2015) MITSloan
Management Review https://search.proquest.com/openview/ce53a01fd86905764ba4ec20d6bafc0f/1?cbl=26142&pq-origsite=gscholar
Robert E. & Glenn P. University of Houston
SHRM-SIOP Science of HR Series
https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert-views/Documents/SHRM-SIOP%20Perceived%20Organizational%20Support.pdf
Shaw, W. S., Reme, S. E., Pransky, G., Woiszwillo, M.
J., Steenstra, I. A., & Linton, S. J. (2013). The pain recovery inventory
of concerns and expectations: a psychosocial screening instrument to identify intervention
needs among patients at elevated risk of back disability. Journal of
Occupational and Environmental Medicine / American College of Occupational and
Environmental Medicine, 55, 885-894.
Thomas, C. (2007) Active consultancy https://www.activeconsultancy.com/
blog/88/employee_engagement_-_reaping_the_rewards_of_recognition
Improving employee engagement is not simply about improving productivity — although organizations with a high level of engagement do report 22% higher productivity, according to a new meta-analysis of 1.4 million employees conducted by the Gallup Organization.
ReplyDeleteIn addition, strong employee engagement promotes a variety of outcomes that are good for employees and customers. For instance, highly engaged organizations have double the rate of success of lower engaged organizations. Comparing top-quartile companies to bottom-quartile companies, the engagement factor becomes very noticeable. For example, top-quartile firms have lower absenteeism and turnover. Specifically, high-turnover organizations report 25% lower turnover, and low-turnover organizations report 65% lower turnover. Engagement also improves quality of work and health. For example, higher scoring business units report 48% fewer safety incidents; 41% fewer patient safety incidents; and41% fewer quality incidents (defects).
While people define engagement in various ways, I prefer a plain and simple definition: People want to come to work, understand their jobs, and know how their work contributes to the success of the organization (Baldoni, 2013).
Thank you Janaka for your comments. I agree with you that improving employee engagement is not simple about improving productivity. Increasing your employee engagement in the workplace can be a tricky situation. As an employer, you need to ensure that your employees are passionate about their jobs, and that they come to the office everyday eager and enthusiastic to start their work (Lauren Clarke, 2020)
DeleteNon-monetary incentives give a solid suspicion that all is well and good and job stability for the employees. At the point when employees come to realize that their job positions are secure and stable, they buckle down. To get more recognition and respect. In this way, they are motivated and inspired entirely by their inner self. The organizational performance can be raised to the highest level by offering non-monetary rewards to the workers/employees (Heyman and Ariely, 2004).
ReplyDeleteThank you for your comments. Non monitory incentives ere in deed an excellent way you can use use to motivate and retain top talent: here are few examples :
DeleteOffer flexible working arrangements such as giving a chance to work-from-home once a week, or for staff to choose their own core working hours instead of the typical 9 to 5.
Provide extensive training plans - both in house and offsite - for staff to complete accredited courses and vocational training,
Offer tangible recognition for staff who consistently excel - either by sending an email cc’ing in business leaders with congratulations on a job well done, giving staff a handwritten note, or mentioning their successes during monthly meetings.
Provide a day off
Offer rewards based on specific personal interests – e.g. membership to their local gym or tickets to the latest theater show (Randstad, 2020)
As a response to ''Measuring the Benefits of Employee Engagement'', Some companies are choosing to invest in better-trained and more service-oriented workforces should be no surprise. With increasing competition, technological advances and globalization, many companies, especially those selling services, have come to realize that employee expenditures are more than a cost it is an assert to the company or organization (Kumar and Pansari 2015).
ReplyDeleteThank you Romesh for your comments. I do agree on your comments. Employee expenditures are more than a cost it is an assert to the company. Engaged employees think of more efficient ways to work, find opportunities to be more productive, generate positive energy on their teams and find new ways to delight customers. That's a financial benefit that businesses can't get any other way, and it's the way to outperform your competition. That's why engaged employees are an asset -- in the truest sense of the word (Ed O'Boyle, 2019)
DeleteIn the present globalized world , Managers need to foster unique strategies that keep employees engaged , motivated and dedicated to work.The Work-Life balance at the individual level has been found to predict a high engaged and productive work force. ( Skinner, N;Elton,J;Auer,J;Pocock, B ( 2014) Understanding and managing work life interaction accross the life course, Asia Pacific Journal of HR. This is also a very important benefit of Effective employee engagement .
ReplyDeleteThank you Thusitha for your comments on my blog. I am in agreement that Managers need to foster unique strategies that keep employees engaged. The failing global economy has created a huge shift in the way business takes place (McCuiston &
DeleteDeLucenay, 2010). Employee engagement matters to both the employee as well as the organization. Employees can utilize contract agreement provisions to impede the attainment of the organizational goals and objectives. Management’s capability to leverage employee engagement strategies is essential in an organization.
According to Markoset et al. (2010) who claims that employees that are not engaged will probably squander their endeavors on low preference jobs, neglecting to give their full effort to assignments and will just stay with the business for a brief time. Robertson-Smith and Markwick (2009) define on what engagement is and uncovers that it is a vital yet complex test, and there remains a lot of extension for examining the different methodologies. Employee engagement, the level of a worker is emotionally attached to his organization and enthusiastic about the work. Organizations trust that commitment is a predominant source of competitive advantage (Sarangi and Nayak 2016).
ReplyDeleteThank you Melissa for your comments on my blog. While I agree with your statements, I should further mention that the survival of corporate industries is dependent on maximizing profits from existing capabilities, while recognizing and adjusting to the fact that what may work today may not necessarily work in the future (Kortmann, Gelhard, Zimmermann, & Piller, 2014). To make or maintain their companies’ profitability, leaders of companies must work hard to engage employees (Kortmann et al., 2014). However, leaders may sometimes struggle to adapt their organization in response to change if they limit their focus to existing products and processes (Hill & Birkinshaw, 2012). Understanding how to manage the balance between employee relations, adopting innovation, and maximizing short-term profits is critical to business leaders ensuring a viable future for their corporations (Hill & Birkinshaw, 2012).
DeleteEmployee engagement originally results in greater employee performance, which further leads to increase organizational performance (Tower Perrin, 2006). Relationship between employee engagement, customer satisfaction, productivity, profit and employee turnover, which eventually, would lead to increased possibility of business success (Harter et al, 2002).
ReplyDeleteThank you Chamila for your comments on my blog. While I agree with your comments please note employee engagement leads to commitment and psychological attachment and reflects in the form of high retention (low attrition) of employees. The level of engagement in employees can be enhanced by identifying its drivers (influential factors) and work on them (Balakrishnan, 2013)
DeleteResearch shows that in terms of productivity, revenue, customer retention and employee retention, employers with good recognition and career development programs scored significantly higher than those who did not (Shaw et al., 2013).
ReplyDeleteYour comments on my blog is well noted with thanks Malinga. I would like to add that high levels of work engagement are when employees are involved with, committed to, enthusiastic, and passionate about their work (Attridge, 2009).
DeleteRewards and recognition play an important role in boosting employee performance and employee engagement at large. Recognition means valuing and caring about the employees' contributions. It is essential for companies to recognize their employees (McGregor, 1960). Further studies show that it is better to recognize employees rather than give incentives (Deci & Ryan, 2000). Employee recognition involves both monetary as well as non-monetary programs (McAdams, 1995). As per Bersin and Associates companies with recognition programs that are highly effective at improving employee engagement have 31% lower voluntary turnover (King 2018).
ReplyDeleteThank you Thilini for your comments on my blog. While I agree with your comments I would like to add that motivation is such a factor that exerts a driving force on our actions and work. Motivation is an accumulation of different processes which influence and direct our behavior to achieve some specific goal. It is such a dynamic in today’s environment that explicitly creates and encompasses a positive impact on job (Baron, 1983)
DeleteI agree with above article and further Employee engagement increases productivity, creates a better and productive work environment, and reduces employee turnover. Engaged employees want good communication with their superiors, work that has purpose for them and motivates them, and a safe working place. When these conditions are met, employees become engaged and as a result Organization will yield better financial results, employees will be proud of their organizations, and demonstrate enthusiasm (Caplan, 2013).
ReplyDeleteEmployee engagement is an important issue in management theory and practice. However, there are still major differences in the concept, theory, influencing factors and outcomes of employee engagement, and there is still no authoritative standard. Two kinds of definitions of employee engagement are identified- employee engagement as a multi-faceted construct (cognition, emotions and behaviors) and as a unitary construct a positive state of mind, a dedicated willingness, the opposite of burnout (Bunchapattanasakda,2018).
DeleteInteresting reading and adding more to your blog. Wickham(2020) explained that , there are basically 10 benefits of Employee Engagement.
ReplyDelete(a) Increased employee safety
(b) Better employee health
(c) Happier employees
(d) Greater employee satisfaction
(e) Better home life
(f) Lower absenteeism
(g) Higher retention
(h) Greater employee loyalty
(i) Better customer service
(j) Better quality
Thank you Madura for your comments on my blog. Adding more to your comment . Importantly, the key to successfully managing change starts with the organization’s members. Indeed, an engaged, positive workforce can “make or break” an organization (Lockwood, 2007). However, it is often difficult for employees and employers to maintain a positive connection at work during turbulent times. Dysfunctional employee attitudes and a negative organization climate can be devastating to effective organizational change. Currently, there is a wealth of research that addresses these issues. Much of the research focuses on creating and maintaining engaged employees (e.g. Avey, Wernsing, & Luthans, 2008; Bakker & Schaufeli, 2008; Marchington & Kynighou, 2012). Another area of study that is connected to effective change is positive organizational behavior (Luthans, 2002).
DeleteA very important fact is, that the workers should be given the training and freedom to make repairs to their own equipment rather than having to call a supervisor every time they experienced a problem, hence workers reported fewer occupational injuries, suggesting that workers who feel they have control over their destiny at work, a key aspect of employee engagement, are more likely to stay focused and less likely to make preventable mistakes(Beardwell & Claydon, 2007).
ReplyDeleteThanks Kelum your comment on my blog is noted with many thanks. I would like to add that employee engagement isn't a silver bullet, but it can have some pretty miraculous effects on your organization. And it doesn’t just correlate with great organizations, it can create great organizations (Wickham, 2020).
DeleteEmployees are inspired and when engaged they do their best to the company they are more customer-focused, are more creative in the field, and are willing to go extra step to meet the goals of the company. From point of organization , the most significant factor; employee engagement has a direct impact on the quality of the company and it's performance (Clarke & MacLeod 2012).
ReplyDeleteThank you Sohan for your comments on my blog. Kompaso and Sridevi (2010) described engaged employees as those who have an emotional connection with the organization. Service training increases engagement and has a direct effect on the organization’s profits (Granatino, Verkamp, & Parker, 2013).
DeleteEmployee engagement and recognition is a simple way to provide good feedback and promote both individual development and large scale growth. Recognition into the company culture creates an environment of respect and is a important way to recruit and retain the best talent. (Wickham,N.2020)
ReplyDeleteThank you Thanuja for your comments on my blog According to Brick (2012), recognition is critical to the culture and operation within the workplace, which impacts workforce engagement. Also, employee rewards and recognition directly affect employee performance and are a form of powerful feedback.
DeleteYang (2008), says on individual performance showed that performance of the individuals cannot be verified. Similarly he asserts that organizations can use direct bonuses and rewards based on individual performance if employee performance is noticeable and ultimate goal is the employee motivation.
ReplyDeleteThank you Kanishka for your comments on my blog. I do agree with your comment but it is also said that When employees are engaged, their individual performance is high, which can positively impact overall organizational performance. Flexible and adaptive leaders are critical in today’s organizations (Crossman & Crossman, 2011). A successful business often boasts a driving force of excellent leadership.
DeleteAgreed and I would like to add more benefits which employers get from employee engagement. Satisfied & happy employees create loyal customers to the business (Robertson-Smith and Markwick 2009). As well as higher Employee Satisfaction, Higher Retention and Lower Turnover, Higher Productivity, Increased Profitability, Less Absenteeism can be identified as benefits from employee engagement.
ReplyDeleteThank you Dilini for your comments on my blog. Here are some more benefits according to Wickham(2020)
Delete(a) Increased employee safety
(b) Better employee health
(c) Happier employees
(d) Greater employee satisfaction
(e) Better home life
(f) Lower absenteeism
(g) Higher retention
(h) Greater employee loyalty
(i) Better customer service
(j) Better quality
Thank you Surendra for your comments on my blog. I would like to add that employee Engagement is a concept gaining significant importance in the past 10 years. Organization today use engaged employees as a tool for strategic partner in the business. The concept of employee engagement has now gained even more importance, since many drivers have been identified, which impact employee performance and well-being at workplace (Pandita, 2014).
ReplyDelete(Armstrong and Taylor ,2014) suggests that job design, learning and development, performance management, and reward program could reinforce engagement in organizations, while emphasizing the central role of immediate managers in facilitating such organizational initiatives. To strengthen the engagement between the organization and its workforce
ReplyDeleteThank you Asanka for your comments on my blog. I do agree with your comment but Korzynski (2013) believed that employees that have proper growth and development channels could better select a career development track to meet their growth needs. All participants indicated the importance of providing adequate development and growth opportunities.
DeleteFeeling valued, job satisfaction and being involved can be identified as main three points of employee engagement (Robinson et al. 2005).
ReplyDeleteNice Article! Digital employee engagement platform - SOS helped organizations to build a digital platform to help the corporate employees be more productive through positive engagement and brand connection.
ReplyDeleteWe bring the best indoor employee engagement activities to help team employees get to know one another. These indoor activities not only boost employee morale but also essential for their team building as well.
ReplyDeleteNice Blog! Are you excited to team building? Team building is a best way to connect and increase the bond with each other. See list of amazing indoor employee engagement activities that help to make their day memorable.
ReplyDelete