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To study the Employee Engagement practices and its effect on employee performance with special reference to ICICI and HDFC Bank in
Lucknow
Neeta Bhatla, Research Scholar,UPTU,Lucknow
ABSTRACT: The employee engagement practices in an organization get increased as companies tend to work with a global workforce .Organizations are on hunt for people who are generally enthusiastic to come to work everyday and are highly passionate about their work .T he article focuses on the need for such employees and how their presence can improve the progress and work efficiency of the organization as a whole .A lso focuses on the challenges faced by the HR managers to improve employee engagement for an organization’s survival .It also throws light on other aspects of employee engagement like benefits ,key indicators and factors influencing employee engagement. It also focuses on the various practices used in private banks.
KEY WORDS: Employee engagement, Organizational commitment, Job content, Involvement, Objectivity, Motivation
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mployee engagement‟ is a relatively new term in HR lite- rature and really started to come to prominence from 2000 onwards. Melcrum Publishing (2005) found that from a global survey of over 1,000 communication and HR practitioners 74% began to formally focus on the issue between 2000 and 2004. Employee Engagement is the extent to which workforce com- mitment, both emotional and intellectual, exists relative to accomplishing the work, mission, and vision of the organiza- tion. Engagement can be seen as a heightened level of owner- ship where each employee wants to do whatever they can for the benefit of their internal and external customers, and for the
success of the organization as a whole.
The fast pace of technological advancement, rising complexi- ties of managing businesses, pressures to become world class organizations and relative scarcity of people with Critical skills have resulted in problems of attracting, retaining and utilizing talent inmost organizations globally. In the changed business scenario, it is being increasingly realized that organi- zations can gain and maintain competitive edge through people as creators of assets. It is precisely to that end that em- ployee engagement assumes significance as a way of manag- ing people in organizations because engaged employees are believed to deliver high quality/committed service and they form work teams that produce high quality results. The present study is an attempt to assess the engagement levels of managers as also to find out the factors that influence em- ployee engagement.
Employee Engagement is the level of commitment and in- volvement an employee has toward his organization. It is the
positive attitude held by the employees towards the organiza-
tions and its values. Kahn (1990) has defined personal en- gagement as the harnessing of organizations members selves to their work roles; it means to psychologically present when occupying and performing an organizational role.
Engagement is all about having a psychological commitment
towards the assigned task, which is clearly reflected in his/her dedication towards the work. Human capital can provide a competitive advantage to any organization. In today‟s highly competitive scenario, companies can achieve exemplary levels of performance only when employees exhibit unwavering commitment towards their tasks. Higher productivity, reliabil- ity, higher self motivation, confidence to express new ideas, organizational loyalty, employee turnover, lower absenteeism and higher levels of customer approval and service quality are some of the characteristics of a wholly engaged employee. Engagement is a state where an individual is, not only intellec- tually committed, but also has a great emotional attachment with his/her job that goes above and beyond the call of duty, so as to further the interest of the company .An engaged em- ployee shows a lot of enthusiasm towards his work and is happy about his work and above all cares for the future of the organization. In today‟s highly competitive work environ- ment, such engaged employees as act as valuable assets, which ultimately lead to increase in the business performance and lower staff turnover.
Meere (2005) describes three levels of engagement:
Engaged - employees who work with passion and feel a profound connection totheir organization. They drive innovation and move the organization forward
Not engaged – employees who attend and partici-
pate at work but are timeservingand put no passion or energy into their work; and
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Meere (2005), these employees undermine theWork of their engaged colleagues on a daily basis.
In the literature on employee engagement, one frequently comes across the term‟ drivers‟ of engagement, which has been popularized by consulting firms as well as HR practi- tioners. A driver is something that drives. For example, any part of a machine that communicates motion to another part is called a driver. For a variable (say, x), to be called a „driver‟ (that is, cause) of another variable (say, y), the following con- ditions must be met: (a) x must precede (not follow) yin terms of time, (b) x and y must vary together in the direction sug- gested by the relevant theory and (c) when x is absent, its causal influence on y must also be absent. Persons who use the term „drivers‟ to explain variation in employee engagement across business units have done so entirely on the basis of ob- served positive correlation. A significant correlation is only one of the necessary conditions to establish causality. Unless the other two conditions are also met simultaneously, it is not possible to establish a cause-and-effect relationship. Since practically all studies on the subject (including the one re- ported in this article) are confined to test association between engagement and set of independent variables, at a single point of time, use of the term „drivers‟ is inappropriate in such cases. Hence, we have decided to use the term predictors‟ in this article.
To successfully respond to both problems and obtain a con- sistent definition that provides a clear interpretation of the concept, a historical understanding of the constructs sur- rounding employee engagement is a prudent way to begin developing a common understanding and language. Looking back at how the concept has evolved would help identify past and present states as well as provide a depth of understand- ing, context, and insight. This historical perspective will help develop informed strategies of practice as well as provide a solid foundation for future researchers to build on. There is a short window of opportunity for the HRD field to take a lead- ing role in fostering employee engagement and to do so; the concept needs to be clearly.
The current global financial meltdown has done more than just adversely affect corporate statistics and share prices. The deep rooted implications of the economic slowdown have crept into the daily lives of thousands of employees, working (or laid-off) across the major sectors in India. Organizations should increasingly convert from traditionalism to the con- temporary learning and individualized corporations. With growing opportunity and greater flow of information, em- ployees today want to be in the best workplaces handling the best suited responsibilities and enjoy greater autonomy. Un- derstanding employee needs must, thus, occupy the centre stage not only for the HR team but also the immediate bosses. Often, problems emanate from the growing distance between superiors and subordinates, longer chain of communication and lack of sufficient opportunity to be involved in critical work processes and decision making. Organizations should increasingly convert from traditionalism to the contemporary learning and individualized corporations. With growing op- portunity and greater flow of information, employees today want to be in the best workplaces handling the best suited responsibilities and enjoy greater autonomy. Understanding employee needs must, thus, occupy the centre stage not only for the HR team but also the immediate bosses. Often, prob- lems emanate from the growing distance between superiors and subordinates, longer chain of communication and lack of sufficient opportunity to be involved in critical work processes and decision making. Companies who are better able to en- gage their people also deliver better business performance and return to shareholders. Thus, employee engagement at all le- vels must not only be encouraged but also rewarded.
1. To study the employee engagement practices in pri- vate banks.
2. To analyze the need of employee engagement.
3. To study the various levels at which employee en- gagement practices in private banks.
4. To study the various aspects of employee engagement.
5. To study the factors affecting employee engagement.
6. To propose a model for employee engagement.
7. To suggest means/methods for improving employee engagement practices in private sectors.
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Organizations with high levels of engagement provide em- ployees with opportunities to develop their abilities, learn new skills, acquire new knowledge and realize their potential. When companies plan for the career paths of their employees and invest in them in this way their people invest in them. Career Development – Effective Management of Talent Career development influences engagement for employees and retaining the most talented employees and providing op- portunities for personal development.
Employees need to feel that the core values for which their companies stand are unambiguous and clear.
Successful organizations show respect for each employee‟s qualities and contribution –regardless of their job level. Leadership – Company’s Standards of Ethical Behavior
A company‟s ethical standards also lead to engagement of an
individual
Employees want to be involved in decisions that affect their work. The leaders of high engagement workplaces create a trustful and challenging environment, in which employees are encouraged to dissent from the prevailing orthodoxy and to input and innovate to move the organization forward.
How much employees are prepared to endorse the products and services which their company provides its customers de- pends largely on their perceptions of the quality of those goods and services. High levels of employee engagement are inextricably linked with high levels of customer engagement. Other factors
The employee engagement levels would be high if their bosses (superiors) provide equal opportunities for growth and ad- vancement to all the employees
Fair evaluation of an employee‟s performance is an important criterion for determining the level of employee engagement. The company which follows an appropriate performance ap- praisal technique (which is transparent and not biased) will have high levels of employee engagement.
The company should have a proper pay system so that the employees are motivated to work in the organization. In order to boost his engagement levels the employees should also be provided with certain benefits and compensations.
Research indicates that the engagement levels are low if the employee does not feel secure while working. Therefore every organization should adopt appropriate methods and systems for the health and safety of their employees.
Only a satisfied employee can become an engaged employee. Therefore it is very essential for an organization to see to it that the job given to the employee matches his career goals which will make him enjoy his work and he would ultimately be satisfied with his job.
The company should follow the open door policy. There should be both upward and downward communication with the use of appropriate communication channels in the organi- zation. If the employee is given a say in the decision making and has the right to be heard by his boss than the engagement levels are likely to be high.
A person‟s family life influences his wok life. When an em- ployee realizes that the organization is considering his fami- ly‟s benefits also, he will have an emotional attachment with the organization which leads to engagement
Co-operationIf the entire organization works together by help-
ing each other i.e. all the employees as well as the supervisors co-ordinate well than the employees will be engaged.
Fig 1 Robinson et al (2004) model of the drivers of employee engagement
The approach to employee engagement, discussed by Robin-
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son et al (2004), stresses the importance of „feeling valued and involved‟ as a key driver of engagement. Within this umbrella of feeling valued and involved there are a number of elements that have a varying influence on the extent to which the em- ployee will feel valued and involved and hence engaged. Ro- binson et al (2004) state that this can be a useful pointer to organizations towards those aspects of working life that re- quire serious attention if engagement levels are to be main- tained or improved.
Fig 2 RBC's new model of employee communication
Moorcroft (2006) notes that the „old‟ model was focused on developing tactics and methods by which to inform em- ployees, or create awareness, of company news and objectives. However, the new model (see figure 4.4 above) is based on engaging employees in the communication process in order to achieve the desired outcomes and thus build the business val- ue. This is achieved by helping employees have a better idea of how what they do impacts upon the organisation and by promoting behaviours that help achieve organisational objec- tives. Moorcroft (2006) reports that the changes to employee communications are beginning to show solid results, with employee alignment andengagement scores improving. Inte- restingly, the communication budget has actually been re- duced at the same time, illustrating that a more focused and thought through strategy can result in better value for money. Fig 3 Penna (2007) model of hierarchy of engagement
Penna (2007) presents a hierarchical model of engagement factors (see figure 3)which illustrates the impact each level will have on the attraction, engagement and retention of talent. They propose a model with “meaning at work” at the apex, which they maintain is borne out by the research carried out into meaning at work. In this context, Penna (2007) defines meaning at work as the situation where a job brings fulfill- ment for the employee, through the employee being valued, appreciated, having a sense of belonging and congruence with the organization and feel like they are making a contribution. In this model, as the hierarchy ascends and the organization successfully meets each of these engagement factors, the or- ganization becomes more attractive to new potential em- ployees and becomes more engaging to its existing staff.
To measure employee engagement, organizations need to get the opinions of the employees in different ways. Employees‟ opinion surveys can then be utilized to derive the Standar- dized engagement metrics. This is in addition to the official and unofficial meetings, workers‟ focus groups, manager‟s interviews and finally the performance measures, instrumen- talinassessing the employees‟ engagement (CUNA, 2008). As a part of measuring employee engagement, Gallup organization came up with questions directed to the employees. Such ques- tions included what the employees expected in their work and whether their opinions at the work place seem to count (Crain Communications, 2009). By measuring employee engagement, the employer shows his or her employees that he or she needs their feedback and thus they feel more valued and respected. Measuring employee engagement gives the employers the insights into which factors influence employee‟s performance, satisfaction, loyalty and motivation (Inforsurvey, 2009; Neilly,
Engaging employees is crucial to satisfying and understand- ing the organization‟s customers (Castries, 2009). This has a measurable and direct impact on productivity, talent reten- tion, financial results and customer satisfaction. When em- ployees are listened to communication is enhanced and acting
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on their feedback improves effectiveness (DecisionWise,
112009). A research conducted by Gallup showed that when employees are engaged in an organization they become, pro-
ductive, safer, increased customer relationships, and stay longer in the company (Gallup, 2009).Promoting engagement among the employees is done by leveraging the three sources of influence for chance; that is leaders, employees as well as organizational strategies and systems. Organizations must be willing to tap into the workers‟ commitment, passion and their identification with the company (Wellins, 2009). This can also be done through building trust between the employees and open communication (3M, 2009). Some of the factors that are employed to engage and retain employees include; a culture of respect, mentoring and feedback, professional and ad- vancement development, appropriate reward, effective leader- ship, job expectations, tools to finish work responsibilities and finally, motivation (Greenberg, 2009; Elton 2007)
Engagement is important for managers to cultivate given that disengagement or alienation is central to the problem of work- ers‟ lack of commitment and motivation (Aktouf). Meaning- less work is often associated with apathy and detachment from ones works (Thomas and Velthouse). In such conditions, individuals are thought to be estranged from their selves (Seeman, 1972) .Other Research using a different resource of engagement (involvement and enthusiasm) has linked it to such variables as employee turnover, customer satisfaction – loyalty, safety and to a lesser degree, productivity and profita- bility criteria (Harter, Schnidt & Hayes, 2002).
An organization‟s capacity to manage employee engagement
is closely related to its ability to achieve high performance
levels and superior business results. Some of the advantages of Engaged employees are:
Engaged employees will stay with the company, be
an advocate of the company and its products and ser- vices, and contribute to bottom line business suc- cess.They will normally perform better and are more motivated.There is a significant link between em- ployee engagement and profitability.
They form an emotional connection with the compa-
ny. This impacts their attitude towards the company‟s clients, and thereby improves customer satisfaction and Service levels.
It builds passion, commitment and alignment with
the organization‟s strategies and goals
Increases employees‟ trust in the organization
Creates a sense of loyalty in a competitive environ- ment
Provides a high-energy working environmentBoosts
business growth
Makes the employees effective brand ambassadors for
the company
A highly engaged employee will consistently deliver beyond expectations. In the workplace research on employee engage-
ment (Harter, Schmidt & Hayes, 2002) have repeatedly asked employees whether they have the opportunity to do what they do best everyday‟. While one in five employees strongly agree with this statement. Those work units scoring higher on this perception have substantially higher performance.
Thus employee engagement is critical to any organization that seeks to retain valued employees. The Watson Wyatt consult- ing companies has been proved that there is an intrinsic link between employee engagement, customer loyalty, and profit- ability. As Organizations globalize and become more depen- dent on technology in a virtual working Environment, there is a greater need to connect and engage with employees to pro- vide them with an organizational „identity.‟
Training is provided in 2 forms
Classroom Training
ICICI Learning Centre - Lonavla
E-Learning Modules
Compulsory Training Mandays
to be completed
Classroom Training
Conducted by in-house trainers
Programs such as Managerial Effec- tiveness, Presentation Skills, Busi- ness Continuity Plan (BCP) etc.
Tie-up with IFMR ( Institute for Fi- nancial Management and Research), Chennai
E-Learning based Training
Functional Modules i.e. Product specific
Credit Cards
Investment and Services
Behavioral Modules
Business Etiquettes
Manager as a Facilitator
Corporate Modules
Five S, Six-Sigma etc.
Induction Modules
Know Your Customers (KYC Norms), Anti-Money Laundering etc
Sprints i.e. short and fast product related
training
Foreign Trips to Managers on meeting their targets within
time
Yearly off-site for all Groups in India and Abroad e.g. Star
Cruise – Singapore, Goa etc.
Photography Competition
Occasional cricket matches organised
Holiday Homes
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Regular discounts schemes at various restaurants, in malls, on goods and accessories e.g. camera, television etc.
• Movie Screenings
• Project Parties
• Hobby Centers
• Family Involvement
Engagement helps in developing them EFFECT OF
Employee engagement builds passion, commitment
Attracts more people like existing employees
Creates a sense of loyalty
Lowers attrition rate
Increases productivity and improves morale
Provides a high-energy working environment
Improves overall organizational effectiveness
Makes the employees effective brand ambassadors for
the company.
Best practice recommends starting right at the selection or re- cruitment stage with:
The right person and giving them a realistic job pre-
view
A strong induction and orientation programme
Rigorous training and development, from technical to
soft skills to leadership
Development programmes.
Regular technical/soft-skill updates.
Certification programmes to drive people towards ex- cellent performance
Beyond initial recruitment and induction, employee engage- ment activities can be broken into a number of groups. These include:
Communications activities
Reward schemes
Activities to build the culture of the organizational
Team building activities
Leadership development activities
Engaged Employees –Scope of Work
Organizations are focusing more and more on employee en- gagement programs and are taking initiatives to make their employees engaged.
• Employees and Their Families - Family Day
• Treating employees as a member of the company by giving a day off on their Birthday and anniversaries
• Provide play and Meditation courts for the employees
to combat the work stress.
• Star of the Week or Month awards
• Employees Kids participating in Painting Competi- tion
• Festival Celebration – Diwali Dhamaka
• Yoga Session
• Self-Management Workshop – Art of Living
• Create a culture of fun & spark at work
• Promote & recognize team performance, system ad- herence,
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• Excellence in execution along with consequence man- agement
• Evolve an employee friendly & business focused poli-
cies,
• Processes & systems with high degree of automation
Organizations have to give their employees the freedom to make their work exciting and an environment having an en- gaged work life .With increase in responsibilities at home and a desire to excel in their careers,employees often get distracted from their work which needs to be taken care of .Employees are the assets of the organization and if they are not given a space whereby they can make a perfect blend of both work
,fun, optimum performance from them may be difficult. Em- ployee engagement emphasis the importance of employee communication on the success of a business. An organization should realize the importance of employees, more than any other variable, as the most powerful contributor to an organi- zation‟s competitive position .Organizations and employees share a symbiotic relation, where both are dependent on each other to satisfy their needs and goal. Therefore; employee en- gagement should not be a one time exercise, but a continuous process of learning, improvement and action. Eventually, measuring employee engagement does not enhance engage- ment or customer response. It is an initiative coined to identify employee engagement with work and trust in the company leading to action plans for forming a truly engaged workforce that creates internal value, promises organizations of em- ployment stability and in effect, positions organizations for nonstop development and success. Thus, organizations today are actively looking forward to intently with and proceed on behalf of their employees` expectations and performances.
1. Shashi Tewari ,2010 “Employee engagement” HRM Review
,IUP publications ,Nov 2010 pg42-45
2. Garima Bardia 2010 “ Talent Management” HRM Review ,IUP
publications ,feb 2010 pg 37-41
3. http://en.wikipedia.org/wiki/Employee_engagement
4. http://retention.naukrihub.com/increase-employee- engagement.html
5. www.siems.edu/employee_engagement
6. Mamta Mohapatra &Baldev R Sharma 2010 “Study of employee engagement and its predictors in an Indian public sector undertaking” Global Business Review .
7. 2009 “Effect of age and experience on job satisfaction and organizational commitment” The ICFAI University Journal of Organizational Behavior 8(1):28-36.
8. Mohapatra, Mamta and Baldev R Sharma 2008 “Drivers of organizational Commitment among managers of Industrial Organizations :A case study ,’Global Business Review 9(1)
:”53-63
9. N R Aravamudha “Talent Management” A critical imperative
for organization ,HRM Review ,feb 2010 pg 36-41
10. Prabhi G and Roja Rani Tegala “Employee engagement: A
mantra for HR managers” HRM Review ,Aug 2009 pg 49-53
11. Priyanka Rawal “Engaged Employees”: Carrying high degree
of organization pride HRM Review, July 2009 pg 41-45
12. http://retention.naukrihub.com/increase-employee- engagement.htm
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