The Rebranding of Virgin

HUMAN RESSOURCES DEVELOPMENT

ACU

By Mélanie PAUGET - S00110384

Employee engagement : strategies for success, what are the drivers ?

Human ressources development

EMPLOYEE ENGAGEMENT

Summary

1. INTRODUCTION 2

2. EMPLOYEE ENGAGEMENT 2

1) Definition and differences with job satisfaction and employee commitment 3

2) Results of a disengaged workforce 4

3) Drivers of employee engagement 4

4) Employee engagement and source of income 7

3. STRATEGIES LEADING TO EMPLOYEE ENGAGEMENT 8

1) Leadership engagement 8

2) Communication to improve the meaning at work 8

3) Salary and bonuses 9

4) Recognition and growth 9

5) Allowing life balance 9

4. RECOMMENDATIONS 10

5. CONCLUSION 11

6. REFERENCE LIST 12

1. INTRODUCTION

This century has changed the way companies do business. The globalization has opened markets to many new competitors. In order to succeed among these new competitors, companies try to develop a competitive advantage and increase their productivity and efficiency. In order to answer these news challenges, Human Resources professionals have started researching new concepts and strategies that could increase their firm's income.

One way of reaching this goal is by decreasing employee turnover that generates costs to the company in recruitment, legal and exit cost. Indeed, a survey said that nearly half "(49%) of employees are either looking for a new job or plan to do so after the recession end" and "22% of surveyed Generation X employees have been actively job hunting over the past year". An explanation of this increasing turnover can be explained by the emphasizing of longer studies. Employees are becoming more skilled and experts in their jobs. According to Cohen G. & Higgins N. J. (2007), the old way of management, involving an almighty manager became obsolete. Indeed these qualifications let employees expect more autonomy in their jobs, as well as more opportunities to make a contribution and an alignment of value and meaning at work. These needs can be fulfilled by an augmentation of the employee engagement. This new concept includes and exceeds the long-established concept of employee commitment and job satisfaction.

This report will firstly explore and explain the concept. It will define the employee engagement concept and differentiate it from the earlier human resources concept, examine the problems resulting from a non-engagement of the employees in the company. It will go through the drivers of this engagement and the possible incomes arising. The second part will explain the strategies leading to an engagement from employees. The last part will give recommendations.

2. EMPLOYEE ENGAGEMENT

1) Definition and differences with job satisfaction and employee commitment

Definition of employee engagement

The concept of employee engagement appeared only a few years ago cited for the first time by Rafferty, Maben, West and Robinson in 2005. From this time, only a few researchers have given a clear definition of the term that still needs an official and academic definition. However, all researchers agree on the fact that employee engagement is composed of three parts:

* Mental: involvement with enthusiasm for working for the company

* Emotional: positive emotional attachment to the brand

* Behavioral: generation of energy and effort for the success of the organization

Gary Tomlinson, head of human resources at Kia Motors Weybridge, UK, explains employee engagement as an "emotional connection" that links the employee and the employer. This underlines the undeniable two-way link of the concept between the organization and the employer and managers.

Definition of job satisfaction

Job satisfaction is conceptualized as the employee enthusiasm and happiness toward his work. Macey W. & Schneider B. (2008) see job satisfaction as "the key ingredient that leads to recognition, income, promotion, and the achievement of other goals that lead to a general feeling of fulfillment."

However, this concept does not include the job contribution neither as the loyalty toward their employer; according to...in order to retain the elite of the employees, it is not enough for a company to rely on the employee satisfaction.

Definition of employee commitment

The employee commitment concept is centralized on the emotional point. Indeed, the employee will feel proud of being part of the company that will conduct him to a certain level of positive attachment. This feeling of belonging to the organization will make them invest time and effort in their work.

The concept of employee engagement includes job satisfaction and employee commitment but adds the employee contribution, based on the behavioral aspect. That means that employee engagement requires efforts to be done by both the employee and the employer. The business context is communicated, so that an involved employee will be more likely to invest himself in the creation of income. The employee will help the employer to succeed with passion and commitment. Moreover, he will as well communicate with colleagues and create a team in order to perform better.

2) Results of a disengaged workforce

According to Tomlinson G. (2010), the negativity expressed by an employee is more likely to propagate than his enthusiasm. The company should then be careful about every single employee for himself. Moreover, this is to add to the fact that surveys have stated that the majority of the employee is skeptical to any changes coming from managers.

As