IOSR Journal of Humanities and Social Science (IOSR-JHSS) e-ISSN: 2279-0837, p-ISSN: 2279-0845 PP 60-68 International Conference on Innovative Management Strategies 60 | Page Madanapalle Institute Of Technology & Science, Bangalore, INDIA Implications of Employee Engagement on Critical Business Outcomes –An Empirical Evidence. * Mrs.G. Swetha, ** Dr. D. Pradeep Kumar 1Research Scholar, JNTU, Ananthapur, ([email protected]) 2Professor & Head, Department of Management StudiesMadanapalle Institute of Technology & Science, Madanapalle([email protected], cell:09849768124) I.INTRODUCTION TO EMPLOYEE ENGAGEMENT Employee engagement has emerged as a critical driver of business success in today‟s competitive marketplace. Further, employee engagement can be a deciding factor in organizational success. Not only does engagement have the potential to significantly affect employee retention, productivity and loyalty, it is also a key link to customer satisfaction, company reputation and overall stakeholder value. Thus, to gain a competitive edge, organizations are turning to HR to set the agenda for employee engagement and commitment. Employee engagement is defined as “the extent to which employees commit to something or someone in their organization, how hard they work and how long they stay as a result of that commitment.”1 In fact, employees with the highest levels of commitment perform 20% better and are 87% less likely to leave the organization, which indicates that engagement is linked to organizational performance.2 II.ENGAGEMENT = PROFIT What then is the business case for this increased attention? It‟s simple: engagement = profit! Research shows that engaged employees are more productive employees. They are more profitable, more customer-focused, safer, and more likely to withstand temptations to leave the organization. In the best organizations, engagement is more than an HR initiative —it is a strategic foundation for the way they do business. Organizations that have optimized engagement have 2.6 times the earnings per share (EPS) growth rate compared to organizations with lower engagement in the same industry. When employees join an organization, they‟re usually enthusiastic, committed, and ready to be advocates for their new employer. Simply put, they‟re highly engaged. But often, that first year on the job is their best. Research reveals, in case after case, that the longer an employee stays with a company, the less engaged he or she becomes. III.ANTECEDENTS AND CONSEQUENCES OF EMPLOYEE ENGAGEMENT:- Critical Business Outcomes as Antecedents to Employee Engagement: The driving force behind the popularity of employee engagement is that it has positive consequences for organizations. There is a general belief that there is a connection between employee engagement and Critical Business Outcomes (Harter et al., 2002)7. However, engagement is an individual-level construct and if it does lead to business results, it must first impact individual-level outcomes. Along these lines, there is reason to
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The Gallup Organization, Gallup poll, George Gallup