Determinants of employee engagement and their impact on employee performance

Abstract

Purpose – The purpose of this paper is to identify the key determinants of employee engagement and their predictability of the concept. It also studies the impact of employee engagement on employee performance. Design/methodology/approach – Causal study was done to study the impact of relationships. A survey questionnaire was developed and validated using a pilot data (a=0.975). Simple random sampling was used to select the employees from middle and lower managerial levels from small-scale organisations. A total of 700 questionnaires were distributed and 383 valid responses collected. Regression and structural equation modelling were used to predict and estimate the relationships. Findings – It was found that all the identified factors were predictors of employee engagement (r2, 0.672), however, the variables that had major impact were working environment and team and co-worker relationship. Employee engagement had significant impact on employee performance (r2, 0.597). Practical implications – Special focus and effort is required specifically on the factors working-environment and team and co-worker relationship as they have shown significantly higher impact on employee engagement and hence employee performance. Organisations shall focus on presenting a great environment for employees to work and promote programmes that would enhance peer relationships. Social implications – The determinants of employee engagement connote a healthy working atmosphere that reflects on the social impact created by the organisation. Employees would enjoy considerable attention in terms of the determinants being addressed. Originality/value – The research emphasises the growing importance and need for crystallisation of the concept of employee engagement. The research is unique in respect to the comprehensive model that is developed and validated.