Employee Engagement: A Structured Theoretical Review

Abstract

Human Resources are the most valuable and significant assets of an organization. Engagement of employees is now recognized as a critical factor by organizations to gain a competitive advantage. Employee engagement ensures high levels of passion, enthusiasm, commitment and involvement by the employees, which further transcends into many tangible and intangible benefits for their organization. Linkage between employee engagement and various performance metrics such as productivity, retention, customer loyalty and profitability has been established. This article provides a structured review of literature on employee engagement, based on various studies conducted by academic, research and consultancy organizations. The various drivers of work engagement and the incremental benefits accrued to organisations due to effective engagement practices are clearly elucidated. The article also discusses the negative impact of disengagement and the various corporate practices pursued by Indian Companies to enhance employee engagement.