A new study reveals four different types of employee engagement found within multinational corporations. Image courtesy of: sxc.hu
A new international study of employee engagement in multinational enterprises has identified four different domains of engagement and the factors which drive them.
The research, co-authored by Cass Professor Veronica Hope Hailey, and funded by the Society for Human Resource Management Foundation
(SHRM), pinpointed the following dimensions of engagement:
- Employees with a high level of job state engagement are passionate and enthusiastic about their job and but don't necessarily work hard
- Employees who exhibit organization state engagement love their company and make great brand ambassadors but as above, this won't automatically lead to high productivity
- Employees with a high level of job behavioural engagement are motivated to develop themselves and take the initiative but don't necessarily feel loyal to their company
- And employees showing organization behavioural engagement are proactive in highlighting problems and suggesting improvements in their company but again don't necessarily hold that company in high esteem or feel loyalty towards it.
Between 2009 and 2011 the researchers studied four MNEs including GKN, AkzoNobel, and Tesco HSC in the UK, the Netherlands, India and China.
The research found that particular facets of performance management drive these different types of engagement so companies can make informed decisions regarding the focus of their performance management system based on the type of engagement they are aiming to achieve and the context in which they are operating.
For example, employers operating in tight job markets where there is a small pool of talent will want to encourage job and organisation state engagement - loyalty which will help them maintain staff levels. The research found that in China and India high levels of organizational state behaviour were highly desirable in potential employees for this reason.
Employers operating in job markets with more availability of skilled talent will want to encourage job and organisation behavioural engagement so their employees are motivated to achieve outstanding results. The research found that in job markets in the UK and the Netherlands which fit this description, behavioural engagement was more prized by employers.
Professor Hope Hailey comments: "'Behavioural' engagement - being proactive - is beneficial from a performance perspective whereas 'state' engagement - feeling enthusiastic about your job and the company - helps produce a pleasanter environment which might help retention and other outcomes. It depends what you want to achieve and that will depend on the job market you are operating in."
What affects these different types of engagement?
The research found that employees who perceived the workload in their job to be high had lower levels of organisational state engagement. However, feeling a company-wide sense of high pressure to produce, or work which was perceived to demand a lot from an employee emotionally, was associated with higher levels of job and organisational behavioural engagement - employees were more proactive, but did not necessarily feel more positive about their job or company.
Employees perceiving high standards of justice and fairness in the performance management process were encouraged to greater job and organisational state engagement (they felt passionate and enthusiastic about their job and company), but not to behavioural engagement i.e. they were no more proactive.
Similarly in the performance management process, having a broad range of potential outcomes which are valued by the employee (e.g. promotion, training, reward) was associated with all dimensions of employee engagement except organisational behavioural engagement.
Where employees were involved in target setting as part of this process, they showed improved job and organisational state engagement - this suggests employees will be more enthusiastic about their jobs and companies if they are involved in setting their own targets.
In terms of work climate and job characteristics, providing increased levels of job resources - more feedback, autonomy, training and development, and task variety - was linked with all dimensions of engagement.
Providing high levels of organizational resources in the form of welfare support and support from line managers, colleagues, and senior managers is also associated with all aspects of employee engagement.
'A study of the link between Performance Management and Employee engagement in Western multinational corporations operating across India and China' by Dr Elaine Farndale, Tilburg University
; Professor Dr Veronica Hope Hailey, Cass Business School
; Professor Dr Clare Kelliher, Cranfield School of Management
; and Professor Dr Marc van Veldhoven, Tilburg University.