Employee Engagement Boosts Competitiveness

Chapter 1: Introduction

1.1.Background of the study

In present times of economic unsteadiness, the organization has begun to view people as an asset with the view that the organization can utilize the skills, knowledge, and abilities for sustaining the level of competitiveness who are involved in the industry. It is because employees being involved in work and committed to their work tends to offer crucial competitive advantages along with higher outputs and lower employee turnover. The initiation of new methods, systems, procedures, and standards tends to be everyday occurrences (Ash,1994). Hence, it becomes significant for the employee to keep up with the evolving trend. To maintain high outputs as well as the effectiveness of the employee, the organization in the present times tends to be concerned regarding the psychological state of the workers. In the present times, the most organization tends to expect employees to be quite proactive and thus take responsibility for their professional development and thus remain committed towards high-level performance. The employers of the organization tend to demand involved employees. It can further be revealed that the right practices in the HRM might lead to proper involvement with the work among the workers. Work involvement has a major role to play in improving the performance of the employees and the significant factor that ensures work involvement is HRM practices. The two HR practices that have been chosen for this particular study are performance appraisal and training and development (Boswell & Boudreau, 2001).

1.2.Problem Statement

Employees engagement and retention have emerged as one of the crucial business priorities for the management and HR Practitioner in the present rapidly changing economy. Engaged employees can support an organization to overcome sudden changes in the wave of an economy with their outstanding performance, innovativeness, and ability to transform crisis into opportunity. Therefore, owing to the competition for scarce skills, the retention of quality employees has emerged as the biggest challenge in human capital management In that pursuit, HR practices play a crucial role as a centre of business entity that manages not only recruitment and selection but is also responsible for employee performance, engagement, and retention.

1.3.The Key Research Parameters to consider are:

Critically analyze and discuss existing literature and contemporary HR practices (Three research articles are provided to comprehend the literature for your references as a start)

Evaluate and select appropriate theories/frameworks based on the given theme

Undertake a systematic analysis of quantitative and/or qualitative information and present how HR practices mediate the relationship between employee engagement and retention (Raw data provided see appendix 1)

1.4. Aim of the research

The main aim of the research has been demonstrated below:

To evaluate or measure the impact of HR practices on employee involvement and retention and their association

To make a recommendation of how the issues can be resolved utilizing the impact of HR practices on employee involvement and retention

1.5.Hypothesis

The hypothesis of the study has been demonstrated below:

HR practices are the cause of the employee labor turnover

HR practices have no affiliation with employee labor turnover

1.6.Research Question

The research question that this study intends to answer have been demonstrated below

Is there an association between performance management and employee engagement and retention?

What is the relationship between compensation and reward in employee engagement and retention?

How can training and development impact employee engagement and retention?

1.7. Structure of the Study

The first chapter of the study intends to offer an introduction where the researcher demonstrates the background of the study along with the objectives of the study. The second chapter of the study is mainly regarding the literature review where the researcher tries to offer scholarly articles and journals. In the third chapter of the study, the researcher intends to demonstrate how the research is conducted. It is the fourth chapter of the study where the researcher tries to present findings and analysis of the study. In the fifth chapter of the study, the researcher tries to demonstrate the conclusion and recommendation of the entire study.

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Chapter 2: Literature review

2.1.Employee Retention

According to Costen & Salazar (2011), it is because of the uncertainty in the economic environment, the organization is found to face huge alteration in the demand for products and services that they offer and tends to be under pressure for enhancing the performance so that they can attain goals and objectives. It has raised the requirement for an organization to enhance how they deliver services and assess their practices, performance objectives, organizational mission, and goals, and performance measures. In the present times, it is employee retention is considered to be one of the debated topics, and determination of the reasons for employee turnover and executing the required policies for retaining employees might prove to be significant. Hence it is because of this reason, different researchers have researched this area. When talented employees of the organization are retained then, it is noted that it tends to offer a significant source of competitive advantage for the organization. In the present times, organization tends to compete with one another by executing unique HRM practices and because of globalization, the organization is capable of implementing the most up-to-date HRM practices for attaining the objectives of the organization. It is significant to employ the best HRM practices as it proves to be beneficial for the employee and the employer. It has a major role to play in the growth of the organization.

As per the views of Bulut & Çulha (2010) HRM practices implies management of people in the internal environment of the organization that consists of activities, policies as well as practices in attaining, developing, assessing, and retaining the adequate skills mix of employees so that the goals of the organization can be attained. HR practices tend to be created in a manner for attaining goals to possess positive employer-employee association and for developing value in the organization. It is flexible along with innovative HR practices that assist the organization in attaining competitive advantages utilizing employees. After the determination of the factors, researchers have paid attention to their HR practices in private sectors, however; most of them have not focused on the BPO sector.

2.2.Employee engagement

As per the views of Dorfman, Walter & John (1986) employee engagement can be demonstrated as one of the significant indicators that help in estimating satisfaction of the work. Employees in the present times tend to be engaged in their work, they are quite enthusiastic with the organization that they work for, possess a sense of belonging, and thus afford flexibility around the location. According to Talat & Kaleem (2010) although employee involvement is considered to be positive company-wide it has been known that in the year 2021, only 39% of the people showed involvement in their job. The reason behind the low engagement might be because of different factors such as lack of recognition made by the managers, lack of company communication, and unable to align with the mission of the company. Employee involvement can be considered as a strategic business objective since engaged employees help in attaining long-term employee retention, a greater degree of outputs, and enhanced quality of work.

2.3.Performance management

As per the views of Dubinsky & Et. Al. (1989) Performance management tends to ensure that the goals of the organization are attained effectively. Performance management encompasses different activities such as joint goal attainment, frequent communication, feedback and coaching for enhanced performance, rewarding attainment. It is to be revealed that performance management tends to be associated with delivering the strategic priorities and language that is utilized needs to be simple. It is to be revealed that an effective performance management system comprises of the job description, attainment-based performance standards, adequate selection methods, education and training, and effective compensation that leads to a rise in the level of outputs. Since the business world is competitive, luring and retaining of right kinds of talent tends to be challenging for the organization. Hence, one of the effective methods for involving and committing employees in an organization is administering the performance of the organization. It ensures the fact that employees will remain in the organization for a longer time.

2.4.Training and development

It can be revealed by Gamage & Imbulana (2013) that training and development implies a systematic creation of the knowledge, skills as well as attitudes that are needed by the employees to conduct a task properly. Distinct models have been created for designing adequate training programs. Kirkpatrick level is considered to be one of the models possessing four main stages such as learning, behavior, reaction, and result. It is the training program that helps in escalating the overall effectiveness, professional growth, smooth organization operation because employees attain the opportunity to enhance competencies. This tends to impact the retention of the employees in the organization for a longer time.

2.5.Training and development impact on employee engagement and retention

Dipboye & de Pontbriand (1981) construed the fact that training and development along with job satisfaction are considered to be the most important elements of employee performance. The researchers have tried to study the impact of training and development on the performance of the employee utilizing job satisfaction. They determined the fact that there is a positive impact of training and development over job satisfaction along with employee involvement in the organization. When companies are found to invest heavily in the training and development programs, there is a rise in the job satisfaction level, and satisfied employees are found to perform their tasks responsibly and would like to dedicate their time to the work. It has been known that there is a huge difference between engaged and disengaged employees with the employees who underwent training and the ones who did not undergo training to improve the overall efficacy of the work. It has been known that employee engagement possesses a positive correlation with the performance of the employee. Selection of the employees in a careful manner does not assure proper performance. Employees who possess the potential might not guarantee performance unless they are aware of the fact how and what can be done. It is training that resorts to this issue. It assists in creating the basic skills among the employees of an organization that is required to perform the task. They emphasized the importance of training as an attempt for improving the performance of the employee by imparting knowledge, altering the attitude, and raising the skills in employee involvement.

2.6.Impact of performance management on employee engagement and retention

It can be revealed by Nkosi, (2015) that retaining the employees can be considered as a way in which the companies are capable of shielding their investment in personnel since it tends to cost money to recruit as well as train the employees of the organization. In case the company tends to lose the experienced employees of the organization then there is a huge impact over the production from the loss of the employee and from the time it takes to attain a new employee. A major part of employee retention can be considered as enacting the policy of performance management. It is performance management that makes use of the annual performance management to develop a development plan for the employees. As per the views of Vasudevan (2014), it is the manager and the employee which take an active role in working over a program that shall assist that shall lead to professional development and advancement in the career of the employee. In case the company takes time to work with an employee over their career, then it leads to a sense of dependency as well as loyalty from the employee. It can be mentioned that there is an interactive component in performance management that shall put the employee along with the manager together to assist in keeping the employee productivity.

Chapter 3: Research methodology

The main objective of this study has been to assess or measure the impact of HR practices on employee engagement and retention along with its association. The study also intends to make recommendations over how issues can be resolved to utilize the impact of HR practices on employee engagement and retention. It is a research methodology that tends to deal with a logical manner in which the research question can be answered and the research objectives can be answered. The section offered below describes and justifies the element of research methodologies that are implemented in the study for answering the research question and thus address the problems in the research (Saunders & et al., 2012).

3.1.Research philosophy

Research studies are performed for the development of knowledge in a particular field of study that is underpinned by philosophical assumptions. Such beliefs are likely to impact the selection of the research methods and data gathering tools. Therefore, it becomes quite imperative to determine philosophical viewpoints at the research methodology phase. There are mainly two main research philosophies such as positivism and interpretivism. This study is argued to be based upon positivism research philosophy. This particular study has been considered to be suitable for the study because this particular philosophy is mainly concerned with truth and facts and also comprises scientific inquiry regarding how HR practices can help on employee retention and involvement in an organization. Since it deals with scientific investigation, the findings that have been attained from positivist research tend to be objective. There is less chance of research bias and for this reason, positivist philosophy has been chosen for the study.

3.2.Research approach

Choice of the research approach tends to be significant because it tends to impact the kinds of data that can be gathered for analysis and interpretation. There are three main approaches of research such as inductive approach, the deductive approach, and the abductive approach. This particular study tends to make use of the deductive research approach (Kumar, 2010).

3.3.Research methods

There are two commonly utilized methods such as quantitative and qualitative research methods. It can be revealed that this particular study intends to make use of the quantitative research methods. The quantitative method is suitable for addressing the problems of the research and answering the research question since this particular method makes use of numerical methods and contextual data when assessed through statistical tools as well as techniques. The findings that are attained from quantitative research are objective and possess a high level of generalizability making the research approach quite suitable for this study (Yin, 2009).

3.4.Research design

Research design offers a roadmap for conducting a research study. The choice of the research design tends to be grounded on the purpose of the research study. According to the research purpose, three types of research design persist such as exploratory, explanatory, and descriptive research study. This research study is considered to be descriptive. Hence, this design is considered to be an ideal choice as it comprises of the detailed description of research participants along with their responses assisting the researcher to attain proper insights and comprehension of the research issue along with answer to the research question in a proper manner (Kumar, 2010).

3.5.Data collection methods

Data collection is considered to be one of the most important elements of a research study because the collected data tends to possess direct implications for the validity of the research outcome. Data is collected from two main sources such as primary sources and secondary data sources. Data has been gathered by visiting the websites of CIPD in this study. In this research study, secondary data will be gathered by using the books from distinct authors, journals, libraries, and distinct research materials. Primary data will be gathered from the online survey method through the use of a questionnaire as a research instrument (Kumar, 2010).

3.6.Sample of the study

To collect the data, 100 respondents have been selected through convenience sampling methods according to their availability that can be contacted through telephone or utilizing e-mail because people are highly concerned regarding their health owing to COVID-19 and most of them prefer to remain in isolation. It can be mentioned that convenience sampling can be applied because of the fact it permits the researcher in choosing the units that are accessible easily (Kumar, 2010).

3.7.Data analysis

Data analysis is one of the most significant phases of the research because, without proper analysis, it might lead to poor outcomes. Therefore the researcher needs to lay huge focus upon the choice of the data analysis methods. The data gathered will be analyzed through the utilization of the questionnaire and bar charts. The study also intends to make use of thematic analysis methods to analyze the case study that has been offered in the study (Kumar, 2010).

Chapter 4: Findings and analysis

It has been identified from the CIPD (2017) annual report that the median rate of labor turnover has raised again since the previous survey and the rate of turnover is 16.5%. two-fifth of the organization undertook initiatives to enhance staff retention in the year 2016. The significant step for enhancing the staff retention rate has been utilizing learning and development opportunities. The table that has been offered below tends to demonstrate labor turnover rates along with reasons for employees leaving the organization. It has been noticed from the table below that most of the employees (10.0) left the organization voluntarily in the year 2016. 1.2 % of the labor were dismissed or left involuntarily which is higher in comparison to 0.7% in the year 2014.

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The diagram that has been demonstrated below helps in comprehending that since the year 2006, there has been a decline in the median rate of labor turnover % according to the CIPD report of 2017. However, it has risen slightly in the year 2016 and 2017 by 18.5% (median rate of labor turnover of 2016 and 2017. This demonstrates the fact that the companies do not tend to have good HR practices in the organization.

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The questionnaire survey had 100 respondents and it can be revealed that in light of performance management 7 questions have been framed. The first question has been associated with understanding if targets and their due dates have been communicated to members of staff. 45 respondents strongly agree to the fact that targets and their due dates tend to be communicated to staff members.

Targets and their due dates are communicated to staff members

The other question of the questionnaire tries to comprehend if performance review focuses on evaluating the competencies and abilities. 19 people strongly agreed to this fact, while 30 people strongly disagreed with this fact. The diagram below tends to demonstrate this figure more clearly.

the performance review focus on assessing my competencies and abilities

The third question is associated with understanding the reaction of respondents to attaining good feedback over performance appraisal. Most of the respondents strongly disagree with the fact that they received good feedback over their performance appraisal. It is quite significant for the top-level management of the organization to offer proper feedback to the staff so that they get a chance to improve them and thus retain them for a longer time.

Receiving feedback on performance appraisal

The other question in the questionnaire aimed at understanding if the weakness detected in the appraisal leads to training as a staff development initiative. It has been found that most of the staff strongly agreed with this fact. Hence, this demonstrates that good HR practices are being utilized in the organization for the staff engagement with work and retention of the employees in the organization.

Weakness detected in the appraisal leads to training as a staff development initiative

The questionnaire aimed at comprehending if the organization of the respondents conducts regular performance reviews or not. It was noted from the survey report that 43 respondents strongly agree with the fact that their organization tends to conduct the performance review continuously. It can be analyzed that under such an organization the employee retention and employee engagement tend to be higher because the employees of the organization are offered the chance to prove their potential through their potential and they want to involve themselves in the task they perform.

Organisation of the respondents conducts regular performance reviews

The other set of questionnaires was formed with training and development. The first question of the questionnaire aimed at understanding if good training opportunities are available for career progression or not. It has been identified that 33 respondents strongly disagree with the fact that good training opportunities are made available to them for career progression.

The figure presented below tends to demonstrate the responses of the respondents.

Good training opportunities are available for career progression

It was asked if the respondents tend to make use of the skills and training for performing different tasks in the organization or not. 37 respondents strongly agreed with the fact that they can make use of skills and training to perform different tasks in their organization. This is considered to be an effective method for the utilization of the skills of the employees. This helps them in further enhancement of their knowledge.

One question of the questionnaire was framed to comprehend if the manager of the company tends to offer clear guidance on ways in which he wants assignments to be performed. Most of the respondents (27) agreed with the fact that clear guidance is offered to the employees on ways in which the tasks can be done. This shall assist the workers to perform the task effectively and lead to an increase in overall productivity.

The other question in the questionnaire aims at comprehending if the planned career progression is attainable in the organization or not. It has been noted that 34 respondents strongly disagreed with the fact that their career progression is attainable in the organization. This implies the fact that the company does not offer much scope to the employees of the organization for career progression. When these things happen, then under such cases, it is noted that employees of the organization do not feel like working for a longer time with the same organization and they do not show any kinds of involvement as well. The figure demonstrated below tends to show the responses of the respondents.

My planned career progression is achievable in my organization

Chapter 5: Conclusion and Recommendations

5.1. Conclusion

This chapter of the study aims at summarising the overall study. The chief aim of the study has been to comprehend how performance management and training and development tends to impact the employee retention and engagement of the employees in the organisation. In order to attain this objective, the study intends to make use of quantitative research method. Questionnaire survey is used in order to find primary data while secondary data has been gathered through books and journals. It has been identified that good performance management system and training and development tends to foster team work, fuels high performance and leads to sense of belongingness. It comprises of discipline and rewards to superior contribution in the organisation.

It is proper performance management and training and development that offers the employees with constructive feedbacks that shall lead to enhanced sill and performance. It offer employee with scope to discuss with the managers of their organisation regarding the short term and long term professional goals. The success and failure of the organisation tends to be dependent over the performance of the employees and training and development opportunities that are offered to the employees. It has been identified from the study that most of the respondent revealed that their career progression is not attainable in their organisation. Most of the respondents stated that they did to attain proper performance appraisal in their organisation.

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5.2. Recommendations

It can be mentioned that for retaining the employees in the organisation, it is significant to offer proper feedback to the employees. This will help them to pinpoint their loopholes and improve them. They will also feel like working for the company for longer time and get involved with the task. Furthermore, it can be recommended that the companies must offer the employees with scope to progress the career in the organisation.

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References

Ash, A., 1994, "Panitipanis' reactions to subordinate appraisal of managers: Results of a pilot", Public Personnel Management, 23, 237-256

Boswell, W. R. & Boudreau, J. W., 2001. "How leading companies create, measure, and achieve strategic results through “line of sight”", Management Decision, 39, 851–59.

Costen, W. M. & Salazar, J., 2011. The Impact of Training and Development on Employee Job Satisfaction, Loyalty, and Intent to Stay in the Lodging Industry. Journal of Human Resources in Hospitality and Tourism, Vol.10, No. (3).

Dorfman, P. W., Walter G. S. & John, L., 1986. “Performance Appraisal Behavior: Supervisor Perceptions and Subordinate Reactions.” Personnel Psychology 39, 579–98.

Gamage, P. N., and Imbulana, M. L. , 2013. Training AndDevelopment And Performance Of Employees: Evidence From SriLanka Telecom. International Journal of Marketing, FinancialServices and Management Research , 2 (9)

Nkosi, S. M., 2015. Effects of training on employee commitment,retention and performance: A case study of a Local Municipalityin South Africa. European Journal of Business and Management , Vol.7, No. (15)

Talat I. & Kaleem, U., 2010. Can empowered employees go the extra mile?, Journal of Public Affairs, 10.

Vasudevan , H., 2014. Examining the Relationship of Training onJob Satisfaction and Organizational Effectivenes. International Journal of Management Business Research , 4 (3), 185-202.

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