Employee Engagement as an Indicator of Organizational Health

Many organizations proclaim, “Our people are our greatest asset.” If the workforce is so important (and it is), how can organizations ensure that they are maximizing this critical investment? Research has shown that diverse and inclusive work environments are more likely to produce engaged employees, which in turn leads to higher productivity and business performance. Given the impact of engagement on broader business profitability, corporate leaders are increasingly recognizing engagement as an important strategic imperative. As companies evaluate the various aspects of operational risks, directors should consider workforce engagement as a critical indicator of organizational health.

WHAT IS ENGAGEMENT, AND WHY DOES IT MATTER?

Employee engagement is defined as an employee’s emotional connection to an organization and its objectives that results in increased discretionary effort. When people put forth their discretionary effort, they are “going the extra mile,” giving their brainpower, time, and energy for the success of the company. High engagement can have a positive impact on employee performance. Stronger employee performance leads to better business results. To understand the factors involved in employee engagement, CACI has conducted annual workshops, during which individuals were asked to think of specific instances when they felt particularly engaged as employees, to identify the variables that enhanced their engagement, and to share the resulting outcome. Each time CACI has conducted this exercise, the room has come alive as people share their stories, recounting their connection to the company and their colleagues as well as describing Herculean team efforts and the unbelievable results that were achieved.