Impact of Employee Engagement on Organizational Performance

Impact of Employee Engagement on Organizational Performance

Rajni Lodhi1, Aryaman Panday2, Diksha Chandrakar3, Simranjeet kaur4

1*Faculty of Commerce and Management, Kalinga University, Near Mantralaya, Village Kotni, Naya Raipur, Chhattisgarh, India, 492101

2Faculty of Commerce and Management, Kalinga University, Near Mantralaya, Village Kotni, Naya Raipur, Chhattisgarh, India, 492101

3Faculty of Commerce and Management, Kalinga University, Near Mantralaya, Village Kotni, Naya Raipur, Chhattisgarh, India, 492101

4Faculty of Commerce and Management, Kalinga University, Near Mantralaya, Village Kotni, Naya Raipur, Chhattisgarh, India, 492101

ABSTRACT

Employee engagement is a vital factor in organizational success, affecting productivity, innovation, and staff retention. This study analyzes the essential elements influencing employee engagement and investigates its effects on business outcomes, such as profitability, customer satisfaction, and operational efficiency. The research emphasizes the development of employee engagement as an idea, differentiating it from similar notions like organizational commitment and citizenship behavior. It highlights the mutual aspect of involvement, stressing the importance of both employees and organizations in nurturing an inspired workforce. This study, via a thorough literature review, finds a significant link between elevated employee engagement and enhanced business performance. Research indicates that committed employees show greater levels of discretionary effort, aid in achieving organizational objectives, and improve the overall workplace culture. Performance management becomes an essential element in maintaining engagement, allowing employees to synchronize their efforts with strategic business goals. Moreover, incentive programs, strong leadership, and a supportive corporate culture are recognized as essential facilitators of engagement.

The research additionally offers practical approaches for improving employee engagement, such as thorough onboarding processes, focused training efforts, and the use of monetary and non-monetary incentives. It also explores generational variances in engagement, assessing if younger and older workers display different levels of commitment and motivation. Results show that companies that prioritize employee engagement strategies not only enhance retention rates but also gain a competitive edge in their sector. The study concludes that cultivating an engaged workforce necessitates a multifaceted strategy that encompasses leadership backing, significant work experiences, and ongoing professional growth. Future studies need to investigate changing workplace dynamics and new trends in employee motivation to enhance engagement strategies for sustained organizational success.

Key words: Employee Engagement, Organizational Performance, Motivation, Work Culture, Motivation