Determinants of Employee Engagement: Evidence from Indian Industries

Abstract

‘Employee engagement’ has occupied the Centre stage of corporate management today for its apparent linkage with enhanced organizational productivity. Various studies have indicated that firms with higher number of engaged employees have lower operating costs, lower attrition, greater talent pool, higher morale, higher customer satisfaction and higher profits. This study undertaken in the Indian industrial set up based on primary data collected from 169 respondents reveals that employees’ age, experience, educational qualifications and gender have a significant bearing on their engagement levels. The study further reveals that employee engagement receives equal importance from the private and the public sector firms in India. Also, six major factors, namely, organization culture, job profile and accountability, compensation and benefits, resources at work, caring attitude of organization, and communication, are found to be the major determinants of employee engagement in the Indian industries.