Newstream joilet3/2/2023 ![]() Further, engaged employees are more interested in and capable of forming strong connections with customers, as demonstrated in studies that link employee engagement to lower customer attrition rates and higher customer spending rates.Īs a result, organizations realize observable gains in productivity and employee replacement costs plummet. An engaged workforce, then, appears critical to developing and maintaining high-quality customer service relationships. As a consequence of the robust utility of engagement, researchers in a recent Organizational Dynamics article assert that employee engagement should also be included as an a fifth element in the Kaplan and Norton’s Balanced Scorecard, in addition to the traditional four elements: financial, customer, internal processes, and learning and growth. The authors rightly argue that the relationship between employeesĬonnecting with and delighting customers and positive financial results from the employees’ efforts warrant such an inclusion. Beyond this article, popular press examples of such a linkage can be found at companies such as Whole Foods, Costco, and Zappos, where a customer-centric and employeecentric culture purportedly drive organizational performance. Despite its renown, there are few practical guides that are rooted in peer-reviewed and evidence-based research on how to develop employee engagement, as well as what specific outcomes to expect from engaged employees. Therefore, the purpose of this paper is to (1) provide a framework for understanding existing research on predictors of employee engagement, (2) expand that framework by describing a new predictor and enhancer of employee engagement rooted in one’s own psychological state, Psychological Capital (Ps圜ap), and (3) provide managers and leaders with case studies that illustrate how to improve employee engagement through the use Ps圜ap. ![]() Here we will specifically draw on our recent qualitative and quantitative research gleaned from several diverse organizations to both make the case for the importance of Ps圜ap and to illustrate how leaders can improve the Ps圜ap of their followers through behaviors and cultural shifts. ![]() PREDICTORS OF EMPLOYEE ENGAGEMENT * Corresponding author. ![]()
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