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A PAPER ON Employee Engagement

Faculty of commerce The M. S. University of Baroda Department of Commerce and Business Management

SUBMITTED BY: Trisha Baxi Nikita Arora Ankita Dave TY BBA Faculty of commerce The M. S. University of Baroda


We would like to acknowledge Department of Commerce and Business Management for giving us a platform to present our perspective on the recent trends, issues and concerns in managing business. We would also like to thank Dr. Shyamal Pradhan for guiding us in making this paper.


This paper presents the concern of an organization for engaging the employee. It also showcases the recent trends and practices of employee engagement in the companies. Companies should make the employees effective brand ambassadors for itself through Employee Engagement.

Table of content



About: Employee Engagement Focus on issues that impact on Employee Engagement Factors of Employee Engagement Recent concerns about Employee Engagement Employee engagement practices in Tata AIG General Insurance Co. Ltd. Employee engagement practices in HCL Info systems Conclusion References

EMPLOYEE ENGAGEMENT The term employee engagement is an evolved version of employee satisfaction. While satisfaction refers to contentment, engagement refers to commitment and they drive to go beyond the call of duty to work towards organizational goals The performance of an organization has a strong correlation with employee engagement. More enhanced the engagement levels of employees, better the organizations performance, in terms of revenues, profits, productivity, and retention and customer satisfaction. Secondly, an engaged employees word of mouth creates a positive image of the organization, thus attracting quality talent to the organization. Focus on issues that impact employee engagement The difference between a happening workplace and an uninspiring workplace depends on the levels of employee engagement. The success of an organization revolves around the percentage of engaged employees Employee engagement is a positive attitude held by the employee towards the organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee. Employees in almost every workplace can be bifurcated into four categories: highly engaged, disengaged and actively disengaged. While engaged employees contribute to the optimum, the disengaged once just follow the routine and those who are actively disengaged, go to the extent of disrupting the normal functioning. So, the key pillars can be classified into: Areas of strength- Engagement levels above 80 per cent
Moderate level of Engagement- Engagement level between 60-80 per cent

Areas of Concerns- Engagement levels below 60 per cent

Factors on which employee engagement depends As per Global studies employee engagement depends on many factors. The most important among them are:

The employees own unique phychologicall makeup and experience.

The employers ability to create conducive conditions enhancing employee

engagement. Strong internal communication from top to bottom.

Also for all organization, an employees needs may vary significantly. For example, in a very young organization, the driver for employees may be fast career progression, whereas in an organization with higher average age, the need may be for affiliation and relationships may be higher. In some organizations, due to the DNA of the organization, quality of work and recognition may b more important the compensation. And also most commonly used engagement pillars are: Job satisfaction Senior leadership Work culture Rewards Affiliation with co-workers Work life balance Physical work environment
Career growth and opportunities

Features of employee engagement:

Understanding of business context and the bigger picture Respectful of, and helpful to, colleagues Willingness to go the extra mile Belief in the organization Desire to work to make things better Keeping up to date with developments in the field

Diagnostic tools of employee engagement Training and development Performance management Communication Equal opportunity Fair treatment Pay and benefits Health and safety Cooperation Family friendliness Job satisfaction
Immediate management

What is the need and importance of employee engagement? In todays environment, employee engagement has become a business imperative. Capturing employee insights as to the strengths and concerns of the organization is the starting point of the engagement journey.. Employee Engagement is integral at motivating employees, thereby leading to a congenial work culture.

To shape and nurture talent pool, employee engagement is one of the critical step apart from acquiring and retaining talent, competency mapping and developing capability, and rewarding and nurturing. What are the major hurdles in employee engagement? Driving participation and ensuring success of large scale events with active involvement is challenging. These however, can be addressed with awareness and creating buzz around the activities. Additionally, creating a culture of innovation helps to create avenues for employees to integrate what they are passionate about, permits to enrich their work. This enrichment helps them feel a profound connection with the organization. The results could be reduced absenteeism, increased efficiency and productivity. How can HR managers match skills with jobs so as to ensure greater participation and motivation among employees? Each role demands certain competencies (synergy of knowledge, skills and attitude) to deliver excellence and they form backbone of people processes in an organization. We have to ensure that employees keep on building required competencies to perform the desired task. HR Managers should ensure recruitment keeping competencies in mind, people management and development, setting performance benchmarks and identifying appropriate learning needs. What are the benefits of having an engaged workforce? How does it impact the bottom line? Employee engagement consistently correlates to business outcomes. Engaged workforce leads to greater sense of belonging, motivation level, collaborative approach, and increased productivity. Engagement involves employees at all levels in creating great place to work where employee trust, commitment and cooperation nourish. How can hiring and recruitment be done in such a way that it ensures engagement right from day one? Emphasis should be laid on grooming of the hires and training them to smoothly navigate through the corporate environment.

Sufficient time should be spent to orient them to the industry, organisation and finally the job. The training should focus on core areas like values of the company. Our First Advantage program ensures an engagement from the day an individual enrolls for the course until he/she is absorbed into the company.

Engagement is linked to three essential forces in the organization - Attrition, Productivity & Profitability

Attrition is the number of people leaving the organization and iss well known fact that is
one of the major problem being faced by the organization be it any sector.

An engaged work force definitely has less chance of leaving the organization, a person
who is engaged in his work is likely to stick to the company as he offers his best and as result of which the organization takes due care of him in form of hike in salary, by the way of incentives and bonus.

Attrition is likely o come down in the organization, which have engaged workforce and this
will get in the likely benefits for the organization.

Productivity is the output of the workers in the form of work done by them its not the

quantity that matters it's the quality that is of importance for the organization.
An engaged workforce has an understanding of what is expected of them at work so thus

they are able to carry on their task effectively and efficiently thus adding to the productivity, growth and success of the organization.

Profitability is the ability of a company to earn a profit. It is a relative measure of success

for a business. Research has proved that an engaged workforce is likely to result in an increase in the profitability of the concern as they have complete dedication and

commitment to their work and thus this is likely to result in an increase in the profit of the concern and thus ensuring the success of the organization.

The organizations now days take all reasonable steps to ensure that they have engaged workforce like organizing birthday bashes, talent shows, sports activities and many other things. They want their employees to be committed to their work fully besides all the above activities they also make sure that the employees have role clarity, get all the material and equipment they require to perform their work efficiently etc.

Employee Engagement of- Tata AIG General Insurance Co. Ltd. Tata AIG General Insurance Company Limited is a joint venture company between the Tata Group and American International Group, Inc. (AIG). The Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 percent. It commenced its operations on January 22, 2001, by providing insurance solutions to individuals and corporate. It offers complete range of general insurance products that includes insurance for automobile, home, personal accident, travel, energy, marine, property and casualty as well as several specialized financial lines. American International Group, Inc. (AIG) American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. Employee Engagement

Tata AIG General Insurance Co. Ltd. as an organization truly believes in inculcating a vibrant culture that looks beyond work and engages its employees in various activities. To undertake these activities, our approach is to follow a systematic sustainable & participative model by actively involving employees, soliciting ideas and encouraging employee involvement. We create and sustain this through our Employee Engagement Activities where we touch the employees and their family in the various forms. Some of them are listed below:

Annual Celebration Commemorate individual and team victories and a fun filled evening for the employees. Employee Town-Hall is an event where the head of the organization addresses and interacts with all employees giving them an insight about the company's progress and unfolding the way forward. The Success Matrix is our Rewards & Recognition Programme where we recognize the performance and contribution of our employees through timely measures. The recipients are acknowledged for their contribution though Awards and citations displayed on the "Wall of Fame" at all the branches. Sports Tournaments Inter-departmental cricket & football matches organized every year for sports enthusiasts helps foster a spirit of teamwork. World of Work (WOW) invites the employees' children to come and spend time in their parents' workplace. A theme is designed especially for the children and the dcor and games are planned accordingly. This promotes family involvement at the office premises where family members bond with each other and get to understand the culture of the organization. Celebrations of Festivals We at Tata AIG believe in celebrating all festivals and ensure that we enjoy as a family. Around these festivities we create avenues for giving expression to employees creative talent and encourage them to showcase their skills through competitions such as Song & Dance, Rangoli, Painting, Traditional attire. Recharge Zone A bright and lively break-away area where employees can brain-storm ideas or flip through books/magazines on business topics. Online Library Service - This library solution will enables employees to review, choose and borrow their favourite books across a wide spectrum of genres simply at the click of the mouse. Management, Self Help, Fiction, Non-Fiction.

Employee Engagement at Tata AIG is an active process which nourishes a healthy environment within the entity and where contribution of 'Every Employee Counts'.

Organization initiatives for employee engagement: HCL Info systems Most organizations have a range of programmers to improve the engagement level of their employees. HCL Info systems, lists the initiatives made by the organization, which start right at the selection stage:

Choosing the right fit and giving a realistic job preview. Strong induction and orientation program me Rigorous training and development, from technical to soft skills to leadership
development programme. Apart from this, there are other forums like enable@HCL which has regular technical/soft-skill updates. HCL also has a certification programme for freshers which empowers young engineers.

To keep up the morale of people and drive them towards excellent performance, HCL
has various incentives such as recognition letters, profit sharing schemes, long performance awards, ESOPS, building assets like own home.

Regular feedback to all people. Communication forums like the in-house magazine Intouch, innovate@HCL (an eforum to develop entrepreneurship), and regular surveys and conferences.

To maintain the quality of work-life and a balance between personal/professional lives,

there are recreational activities like festivities@HCL, get-togethers@HCL, sports@HCL, etc.

An open and transparent culture to empower its people and develop entrepreneurs.
The result of these practices is evident through the regular feedback from their employees collected through conferences and surveys; apart from the employee engagement survey conducted every second year. The proof is the latest increase in employee engagement from 54 percent to 64 percent.


Employee engagement builds passion, commitment and alignment with the

organizations strategies and goals

Attracts more people like existing employees Increases employees trust in the

Creates a sense of loyalty in a competitive environment Lowers attrition rate Increases productivity and improves morale Provides a high-energy working environment Improves overall organizational effectiveness

Boosts business growth