The literatures indicate that employee engagement is closely linked with organizational performance outcomes.
Companies with engaged employees have higher employee retention as a result of reduced turnover and reduced
intention to leave the company, productivity, profitability, growth and customer satisfaction. On the other hand,
companies with disengaged employees suffer from waste of effort and bleed talent, earn less commitment from
the employees, face increased absenteeism and have less customer orientation, less productivity, and reduced
operating margins and net profit margins. Most researches emphasize merely the importance and positive
impacts of employee engagement on the business outcomes, failing to provide the cost-benefit analysis for
engagement decisions. As any other management decisions, engagement decision should be evaluated in terms
of both its benefits and its associated costs, without giving greater emphasis to neither of the two, not to bias the
decision makers. Thus there is a need to study the cost aspect of engagement decisions. The remarkable fact is,
the findings of today’s researches, can be used as corner stone for the building of complete essence to the
construct. Furthermore, much of the works related to “employee engagement” construct is attributed to survey
houses and consultancies. Therefore, there is a need for academia to investigate this new construct and come up
with a clear definition and dimensions that will be used for measuring employee engagement justifying the
importance of engagement concept. Otherwise, it will pass away shortly as many other human resource fads did.
The literatures indicate that employee engagement is closely linked with organizational performance outcomes.
Companies with engaged employees have higher employee retention as a result of reduced turnover and reduced
intention to leave the company, productivity, profitability, growth and customer satisfaction. On the other hand,
companies with disengaged employees suffer from waste of effort and bleed talent, earn less commitment from
the employees, face increased absenteeism and have less customer orientation, less productivity, and reduced
operating margins and net profit margins. Most researches emphasize merely the importance and positive
impacts of employee engagement on the business outcomes, failing to provide the cost-benefit analysis for
engagement decisions. As any other management decisions, engagement decision should be evaluated in terms
of both its benefits and its associated costs, without giving greater emphasis to neither of the two, not to bias the
decision makers. Thus there is a need to study the cost aspect of engagement decisions. The remarkable fact is,
the findings of today’s researches, can be used as corner stone for the building of complete essence to the
construct. Furthermore, much of the works related to “employee engagement” construct is attributed to survey
houses and consultancies. Therefore, there is a need for academia to investigate this new construct and come up
with a clear definition and dimensions that will be used for measuring employee engagement justifying the
importance of engagement concept. Otherwise, it will pass away shortly as many other human resource fads did.
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