Benefits of Employee Engagement in Organizations

Over the last decade, various scholars have defined employee engagement as a two-way relationship between the employer and the employee based on an intellectual commitment of the employee to the organisation (Baumruk et al, 2006; Shaw, 2005). As employees perform their role they expresses themselves physically, cognitive and emotionally (Kahn, 1990), they are psychologically present (Saks, 2005) and have a positive, fulfilling, work-related state of mind that is characterised by vigour (energy and involvement), dedication (enthusiasm, pride to work for the organisation, inspiration, and challenges), and absorption (concentration) (Schaufeli et al, 2002; Baker et al, 2008).

The subject of employee engagement has increasingly become more popular within the research fields of marketing, business, psychology and public relations because of the supposed benefit that employee engagement brings to the employee, the customers and the company. Various scholars have listed these benefits, which can all be divided between an organisation-level and an employee level.

On an organisational level employee engagement is said to contribute to customer loyalty, profitability, employee turnover (Hayes, T. 2002) stakeholder return, growth (Sask, A. 2005; Heskett et al, 2002) out-performing competition, employee performance quality (Seijts & Crim, 2006), reputation, increase in sales (Kings & Grace, 2004) and customer satisfaction (Heskett et al, 2002).

On an employee-level, employee engagement is supposed to increase employee satisfaction, which then leads to pride in service, an emotional connection between employee and the organisation, and a positive word of mouth. This positive state of mind could lead to employees being willing to go ‘over-an...

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...e word of mouth, which eventually end in the ultimate goal: financial benefits. However, to get these positive brand equity results, the first chain, the EBBE, should be sustainable for the consecutive chains (consumer and financial based equity) to be profitable i.e. the employees should have the knowledge and means (EBBE) to realise the customers expectations (CBBE) to make organisational profit (FBE).

Figure 2 illustrates that internal brand management starts of with generating information for - and disseminating knowledge to - employees in order for them to be able to realise the desired brand perception for the customers (employees: role clarity, customers: brand commitment). This environment can only be created by treating the employees as human beings (H-factor), i.e. with respect and dignity, through open two-way communication (openness).