HRM in Action: Employee Engagement as a Strategic HR Tool

HR Tool Employee engagement refers to the level of commitment workers make to their employer, seen in their willingness to stay at the firm and to go beyond the call of duty.1 Firms want employees that are highly motivated and feel they have a real stake in the company’s success. Such employees are willing to finish tasks in their own time and see a strong link between the firm’s success and their own career prospects. In short, motivated, empowered employees work hand in hand with employers in an atmosphere of mutual trust. Companies with engaged workforces have also reported less absenteeism, more engagement with customers, greater employee satisfaction, less mistakes, fewer employees leaving, and naturally higher profits. Such is the power of this concept that former Secretary of State for Business, Peter Mandelson, commissioned David McLeod and Nita Clarke to investigate how much UK competitiveness could be enhanced by wider use of employee engagement. David and Nita concluded that in a world where work tasks have become increasingly similar, engaged employees could give some companies the edge over their rivals. They also identified significant barriers to engagement such as a lack of appreciation for the concept of employee engagement by some companies and managers. Full participation by line managers is particularly crucial. From the employee point of view, it is easy to view engagement as a management fad, particularly if the company fails to demonstrate the necessary commitment. Some also feel that in a recession, employee engagement becomes less of a priority when in Performance Management and Appraisal 8 CHATE R