Benefits of Employee Engagement A direct relationship exists between employee engagement and the success of a business company. This relationship is quantifiable especially regarding international or global business. Scholars of human resources management and other related disciplines define employee engagement as a situation where the management of the business organization enhances commitment of employees on their responsibilities resulting in total commitment. In this case, employees develop a spirit where they put company goals and objectives before personal goals. Engaged employees commit themselves to work and in the process do not have time to gossip even during grapevine (Macey, 2009, p.
21). A business company with engaged employees reduces conflicts among employees making it one of the most appropriate mechanism tom avoid conflict. Most business managers and chief executives define success perfectly but fail in comprehending the drivers of success. Managers consider various aspects of success among them profit levels, market share, as well as brand equity. The real impetus of the business lies with employees. Employees become even more critical when discussing global enterprise. They design, develop, and produce products in addition to attending to company clients.
Employees represent the face of the business brand. Scholars concur on the fact that employees constitute determinants of either successful international and local business or those that rarely or fail to attain the full capacity. A successful local or global business enterprise has engaged employees. Research by Azusa Pacific University, 1983, p. 67)) shows that business companies with high rates of employee engagement recorded a nineteen percent increase in their operating income over one year trading period. Similarly, the same companies witnessed a rise in earnings per share averaging twenty-eight percent.
On the other hand, (Oyemba) notes that business with low abilities of engaging employees recorded a drop in income averaging more than thirty-two percent over the same financial period. This correspondent with an eleven percent decline in earnings per share. Flippo, (1984, p. 19) identifies that most managers took lessons from Michael Lewis’ Moneyball applying the same to their respective business environment with measurable success. Issues under consideration included among others measurement of the degree of engagement among employees, evaluation of their performance, as well as levels of elevation.
Global companies operate in various parts of the world and among people with diverse ethnic backgrounds. This means that adopting the skills and qualities of evaluating intangible factors adds to the quality of performance. The introduction of measurable tools of intangible factors gives managers new, insightful, and actionable solutions to any situation regarding their employees. Relevant and concrete information replaces perceptions, gut feel, and intuition (Lucas, 1999, p. 33). Wells Fargo stands out as the example of an international company that recognized and embraced the value of successful employee engagement.
The company operating in Europe, Africa, as well as the United States of America applied the happy-to-grumpy ratio to assess the levels of its employee engagement. Apart from evaluating what was important in motivating its employees, they also evaluated the degree of their employee engagement. As a successful international company, Wells Fargo concentrated on assessing commitment of individual member of each team. Understanding the drivers of what element in the team covered the duration between projects and the length. In this case, they sort to comprehend internal links between various business results in projects.
Ultimately, Wells Fargo found out that a strong relationship a high degree of employee engagement and increased productivity of employees as well as the satisfaction of customers. Barrio-Urdaneta, 2008, p. 41) on the other hand, relates metrics with analytics. However, he adds that the important idea is aligning the company strategy to both metrics and analytics (Whiteley, 2002, p. 77). If research by a particular company for instance Wells Fargo proves that high employee engagement results in improved customer satisfaction because of increased sales, then the business organization will put measures to invest more in strategic initiatives that enhance employee commitment.
Higher employee commitment is a prerequisite for better performance in the store. An initiative by Wells Fargo demonstrates that it is possible for international business companies to carry out measurement of the impact of the commitment of employees to the success of business organization (Jucius, 1975, p. 51). It is important to mention that more companies continue to invest in the assessment of employee engagement but fail in evaluating the effectiveness of the same miserably.
This explains why the fair badly in analyzing important drivers of the commitment of employees. It is for this reason that most managers as well as Chief Executives continue to wonder how particular human resource programs influence the performance of both the company and employees. It is necessary for businesses especially international enterprises to understand the impact of qualities that shape the drivers of employee engagement. Furthermore, managers of such businesses must have qualities of evaluating employee engagement apart from measuring effectiveness of the same.
Understanding the culture of the company traditional established by the founders is also essential. Gellerman, (1968, p. 97) proposes that one of the best ways to carry out such an exercise is using strategic recognition. This scenario will provide an opportunity for employees and those in the management to recognize and appreciate one another irrespective of the prevailing situation. The situations include behaviors, excellent delivery of work, and demonstration of corporate values together with the ability to work in a team. Strategic implementation of recognition creates a different and viable alternative for managers to develop new health within their organizations.
Recognition becomes the barometers with which business organizations measure the relationship between the performance of employees and their engagement (Sayeed, 2001, p. 131). Business companies can use the same to assess the rate of occurrences of recognition across various departments, locations, as well as members of different teams. Irregular occurrence of recognition can serve as an alert for the management to understand that all is not well in their business organization. Managers need to comprehend such incidences are common where the management focuses on having their employees meet their targets without other considerations into perspective (Institute Of Personnel Management, 1969, p.
112). Other considerations include managers and supervisors ignoring emotional and psychological need of employees. This group of managers holds that the only way to increase productivity is compensating employees well. It is difficult for managers who are not keen to understand the relationship between low levels of recognition and diminishing health of the overall company. The management needs to concentrate on factors leading to productivity as opposed to productivity.
Intangible factors of productivity carry more weight than terms of service to most employees. Bibliography Azusa Pacific University. (1983). Job satisfaction. Azusa, Calif, Azusa Pacific College. Barrio-Urdaneta, E. C. (2008). Employee engagement. Thesis (M. A.)--Bethel University, 2008. Flippo, E. B. (1984). Personnel management. New York, McGraw-Hill. Gellerman, S. W. (1968). Management by motivation. [New York], American Management Association. Institute Of Personnel Management. (1969). Personnel management. London, Business Publications]. Jucius, M. J. (1975). Personnel management. Homewood, Ill, R.D. Irwin. Lucas, J. R. (1999). The passionate organization igniting the fire of employee commitment. New York, AMACOM. http: //search. ebscohost. com/login. aspx? direct=true&scope=site&db=nlebk&db=nlabk&AN=516 Macey, W. H. (2009). Employee engagement. Chichester, U.K. , Wiley-Blackwell. Sayeed, O. (2001).
Organizational Commitment for healthy organizations. New York, McGraw-Hill. Whiteley, P. (2002). Motivation. Oxford, U.K. , Capstone Pub. http: //search. ebscohost. com/login. aspx? direct=true&scope=site&db=nlebk&db=nlabk&AN=67260.