Engagement and Reward

Introduction The meaning of employee engagement Why engagement is important The factors that influence engagement Enhancing engagement Developing engagement policies through reward References

Introduction
As Emmott (2006) commented: Employee engagement has become a new management mantra and its not difficult to see why. Engaged employees those who feel positive about their jobs perform better for their employers and can promote their organization as an employer of choice.

Meaning
The concept of engagement was defined by Gallup (2009) as: The individuals involvement and satisfaction with as well as enthusiasm for work. An academic definition based on research by Maslach et al (2001) referred to engagement as: A positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, and absorption.

 The Institute for Employment Studies (IES) (Robinson et al, 2004) defined employee engagement as follows: Engagement is a positive attitude held by the employee towards the organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. The organization must work to nurture, maintain and grow engagement, which requires a two-way relationship between employer and employee.

IES model of employee engagement

Engaged employee and performance

An engaged employee was defined by Bevan et al (1997) as someone who is aware of business context, and works closely with colleagues to improve performance within the job for the benefit of the organization. Murlis and Watson (2001) defined engaged performance as: A result that is achieved by stimulating employees enthusiasm for their work and directing it towards organizational success.

Why engagement is important

employee engagement is important to employers because a considerable amount of research indicates that high levels of engagement that result in behaviors such as maximizing discretionary effort, taking initiative, wanting to develop, or aligning actions with organizational needs deliver a range of organizational benefits; for example: Higher productivity/performance: engaged employees perform 20 per cent better than the average (Conference Board, 2006). Lower staff turnover: engaged employees are 87 per cent less likely to leave (Corporate Leadership Council, 2004).

The factors that influence engagement

Research cited by IDS (2007) has identified two key elements that have to be present if genuine engagement in its broadest sense is to exist. The first is the rational aspect, which relates to employees understanding of their role, where it fits in the wider organization, and how it aligns with business objectives. The second is the emotional aspect, which has to do with how people feel about the organization, whether their work gives them a sense of personal accomplishment and how they relate to their managers.

Balain and Sparrow (2009)

Enhancing Engagement
1. Intrinsic motivation Intrinsic motivation depends on the way in which work or jobs are designed. Three characteristics have been distinguished by Lawler (1969) Feedback: individuals must receive meaningful feedback about their performance, preferably by evaluating their own performance and defining the feedback. Use of abilities: the job must be perceived by individuals as requiring them to use abilities they value in order to perform the job effectively. Self-control (autonomy): individuals must feel that they have a high degree of self-control over setting their own goals and over defining the paths to these goals.

2. Work Environment A strategy for increasing engagement through the work environment will be generally concerned with developing a culture that encourages positive attitudes to work, promoting interest and excitement in the jobs people do, and reducing stress. The strategy also needs to consider particular aspects of the work environment, especially communications, involvement, worklife balance and working conditions.

3. Line managers Performance management can provide line managers with a useful framework in which they can deploy their skills in improving performance through increased engagement. This applies particularly to the performance management activities of role definition, performance improvement planning, joint involvement in monitoring performance and feedback.

Developing engagement policies through reward

Reilly and Brown (2008) contend that appropriate reward practices and processes, both financial and non-financial and managed in combination, can help to build and improve employee engagement , and that badly designed or executed rewards can hinder it.