"Companies with high levels of employee engagement earn returns that are more than double those of the overall market" As HR managers consider the various options open to them for conducting their employee surveys, here at Insightlink we've been asked questions relating to the role of "employee engagement" in our surveys. In particular, we've been asked to compare our approach with that of alternatives such as the Hewitt Engagement Model and the Utrecht Work Engagement Scale. Insightlink's standard 4Cs employee survey contains many of the same measures that organizations use to assess employee engagement, such as "You are willing to work above and beyond the call of duty for your organization," "Your work gives you a feeling of personal accomplishment" and "You feel proud to work at this organization."
However, our experience analyzing numerous employee studies is that employee engagement alone is not a sufficient barometer with which to gauge organizational performance, particularly in terms of influencing more concrete measures such as predicting turnover. In fact, our experience with employee engagement as a survey measure is very similar to the conclusions of the article "Work Engagement in Japan: Validation of the Japanese Version of the Utrecht Work Engagement Scale" that (a) all engagement items load on a single factor (rather than the multiple factors included in the Work Engagement Scale), which means that the scale is evaluating just one construct, and (b) that work engagement is positively related to job satisfaction. In other words, we place much more emphasis on the measure of employee satisfaction (using the 5 point scale "Extremely satisfied," "Very satisfied," "Somewhat satisfied," "Not very satisfied" and "Not at all satisfied") as the key predictor of organizational well-being. Our approach has been validated by a recent article from Wharton University of Pennsylvania called "Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices."
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