A Study on Employee Engagement Practices and Their Impact on Organizational Productivity

Abstract

Employee engagement has moved from being a fashionable HR phrase to a serious boardroom concern, mainly because disengaged employees quietly drain productivity in ways that balance sheets do not immediately show. The present study examines the employee engagement practices followed in selected organizations and measures the extent to which these practices influence organizational productivity. Primary data were collected from 120 employees working in IT/ITeS, banking and finance, manufacturing, and retail and service organizations through a structured questionnaire built on a five-point Likert scale. Six engagement practices were studied: communication and transparency, rewards and recognition, training and career development, work-life balance, participation in decision making, and work environment and peer relations. The collected data were analysed using descriptive statistics, Pearson correlation, simple linear regression and one-way ANOVA. The results show a positive and statistically significant relationship between overall employee engagement and perceived organizational productivity (r = 0.576, p < 0.01), with engagement explaining about 33 per cent of the variation in productivity. Communication, training and recognition emerged as the strongest individual contributors, while work-life balance recorded the lowest mean score among the practices studied. The paper closes with practical suggestions for strengthening engagement and thereby productivity.