Proceedings of Applied International Business Conference 2008 WORK ENGAGEMENT AND PERFORMANCE – A REVIEW OF LITERATURE AND IMPLICATIONS FOR ORGANIZATIONS Wan Nur Aswannah Wan Chik ψ KDU College, P.J. Campus, Malaysia ______________________________________________________________________________________ Abstract Work engagement is a positive, fulfilling, work-related state of mind that is characterized by vigour, dedication and absorption. Many have claimed that work engagement predicts employee outcomes, organizational success and financial performance. However, there is a deepening disengagement among employees today. The latest results of the Global Workforce Study 2008-09 found that four out of five workers are disengaged. In addition, roughly half of all Americans in the workforce are not fully engaged or they are disengaged leading to what has been referred to as an “engagement gap” costing US businesses $300 billion a year in lost productivity . This paper aims to establish avenues for future research to measure the engagement-gap in different job characteristics and organizations. It is a non-research paper but the review will prove invaluable for academics wishing to enlarge on the concept especially in Malaysia. There is still a huge potential for further research. It will review literature based on the study as it began with Kahn (1990), Maslach et al (2001) and later Schaufeli et al (2002) and others up to the present. The Job Demands-Resources Model which has been integrated into an overall model that links work engagement and performance will be illustrated. This includes the validated instruments that measure the state of engagement - the Utretch Work Engagement Scale, the Oldenburg Burnout Inventory, the Maslach Burnout Inventory and the Gallup 12-Q; and other research that applied work engagement as mediator. ______________________________________________________________________________________ Keywords: Organizational behaviour; Work engagement; Burnout. JEL Classification Codes: M12. 1. Introduction “Employees today care a lot about their work. They want to learn and grow. They want stability and security. With the right opportunities and resources, they’ll commit to a career with a company. They care deeply about work/life balance, but they are not, for the most part, slacking off.” Global Workforce Study, 2008-2009 The study conducted by Towers Perrin (2008) came to a positive conclusion about the situation of today’s workforce. They found that organizational attributes like leadership, career and professional development, and the kind of work culture and reputation a company creates play a significant role in shaping employees’ level of engagement and behaviour. But what is disturbing from this study is that the global workforce is not engaged. This “engagement gap” poses a serious risk for employers because it is costing US business $300 billion a year in lost of productivity (Bates, 2004; Johnson, 2004; Kowalski, 2003). As we approach another evolution in managing human resources, organizations are finding it imperative to rely on employee-centered management. Employees are regarded as human capital where value and contribution have an impact on the bottom-line. Gone were the days that managers use fear, threat and punishment in return for compliance. Modern organizations today focus on the management of employees as human capital in the way that expectations are towards proactivity, initiative and empowerment. The ψ Corresponding author. Wan Nur Aswannah Bt Wan Chik. KDU College, Petaling Jaya Campus, SS22/41, Damansara Jaya, 47400 Petaling Jaya, Selangor Darul Ehsan. Corresponding author Email: [email protected] Proceedings of Applied International Business Conference 2008 drive to cultivate engaged workers has never been greater for employees to feel energetic, dedicated and absorbed in their work. Sustaining engaged employees would mean sustained high performance. According to Ulrich (1997), who wrote in his seminal book Human Resources Champions: “Employee contribution becomes a critical business because in trying to produce more output with less employee input, companies have no choice but to try to engage not only the body but the mind and soul of every employee (p.125)”. Organizations expect their employees to be proactive and show initiative, collaborate smoothly with others, take responsibility for their own professional development, and to be committed to high quality performance standards (Bakker & Schaufeli, 2008). But what can organizations do to attract and keep creative, dedicated and thriving employees who make organizations flourish? Which working conditions inspire employees to be engaged, give their best, go the extra mile, and persist in the face of difficulties? This paper has been written to review the ideas evolving around the term “work engagement” and engaged employees. The study of work engagement can be classified as positive organizational behaviour (POB). The field of POB emerged from the recently proposed positive psychology approach. Positive psychology studies the strengths and virtues that enable individuals and communities to thrive. Hence, POB emphasizes the effective application of positive traits, states and behaviours of employees in organizations (Luthans & Youssef, 2007). POB researchers are interested in peak performance in organizations and examine the conditions under which employees thrive. And work engagement comes under this construct. Most researches on engagement were undertaken in Netherlands, Greece, South Africa, Turkey, Finland, and Australia as well as in India, Japan and China. Towers Perrin conducted its most recent survey among nearly 90,000 employees in 18 countries. For Malaysia’s 800 employees surveyed, they found that one in four Malaysian workers is engaged compared to one in five worldwide (Towers Perrin, 2008). Such data is necessary in order to make Malaysia a more attractive destination for foreign direct investment besides contributing positively to the company's business and financial performance (MIDA, 2008). This leaves a lot of room for the application of this construct in different job characteristics and organizations to be adapted in the Malaysian context. 2. What is work engagement? Many of us may feel that there is no such thing as work engagement. How do we classify work engagement or is work engagement similar to terms like commitment, involvement and satisfaction? This review attempts to make comparisons of views on this topic and to eventually conceptualize the meaning of the construct thus far. The views of Kahn (1990, 1992), Saks (2006, 2008), Schaufelli et al (2008) are chronologized to understand how the term “engagement” evolved up to the present day. The term “engagement” is rooted in role theory, in particular the work of Erving Goffman (1961). Role theory studies the various roles individuals occupy in society, as well as the social expectations and behavioural boundaries attributed to such roles (Baily and Yost, 2007). Goffman (1961) defined engagement as the “spontaneous involvement in the role” and a “visible investment of attention and muscular effort” (p.94). Later, William Kahn (1990) published findings from two qualitative studies, the first on camp counselors and the second on members of an architectural firm. Kahn (1990) defined engagement as “the harnessing of organization members’ selves to their work roles” (p.694). The more of ourselves we give to a role, Kahn claimed, the more exciting and comfortable is our performance. Kahn suggested, however, that individuals could vary how much of themselves they assign to each role. Other views are propounded by Schutte, Toppinen, Kalimo and Schaufeli (2000) who stated that engagement is an energetic state in which the employee is dedicated to excellent performance at work and is confident of his or her effectiveness. Maslach, Schaufeli and Leiter (2001) also characterized engagement by energy, involvement and efficacy. Interestingly however, Dr Schaufeli and his colleagues who focused their study on work engagement carried out extensive study on the construct. Schaufeli, Salanova, Gonzalez-Roma and Bakker (2002) defined engagement “as a positive, fulfilling, work-related state of mind that is characterized by vigor, dedication and absorption” (p.74). Vigor is characterized by high levels of energy and mental resilience while working, the willingness to invest effort in one’s work, and persistence even in the face of difficulties. Dedication refers to being strongly involved in one’s work, 305 Proceedings of Applied International Business Conference 2008 and experiencing a sense of significance, enthusiasm, inspiration, pride and challenge. Absorption is characterized by being full concentrated and happily engrossed in one’s work, whereby time passes quickly and one has difficulties with detaching oneself form work (Schaufeli & Salanova, 2007). Engagement can also be seen from another perspective. Accordingly to Saks (2006) engagement can be found in a strong theoretical rationale in the social exchange theory (SET). He felt that in terms of Kahn’s definition of engagement, employees feel obliged to bring themselves more deeply into their role performances as repayment for the resources they receive from their organization. Thus, employees are more likely to exchange their engagement for resources and benefits provided by their organization. Saks (2006) later categorized the antecedents and consequences of employee engagement into two dimensions: job and organization engagements. There is evidence that one’s degree of engagement depends on the role in question (Rothbard, 2001). Thus it is possible that the antecedents and consequences of engagement depend on the type of engagement (Figure 1). Antecedents Job characteristics Perceived organizational support Perceived supervisor support Rewards and recognition Procedural justice Distributive justice Employee Engagement Job engagement Organization engagement Consequences Job satisfaction Organizational commitment Intention to quit Organizational citizenship behavior Figure 1: A model of the antecedents and consequences of employee engagement Source: Saks (2006) Journal of Managerial Psychology, 21,7. The Australian Mines and Metals Association (AMMA) (2007), on the other hand, viewed the importance of engagement to that of the work of organizational leaders. Engaged employees willingly work to the best of their capability in the interests of the organization and are encouraged to do so through the leadership, structure and systems of the organization. In this definition, the work of the leaders of the organization is made explicit. The scope of work is substantial, consistent with the challenge of giving real effort to the idea of employee engagement (AMMA, 2007). Even though engagement brings both organizational and individual benefits, however, most US employees are not engaged. Amongst all currently employed US workers, an estimated 25 percent are fully engaged, 50 percent not engaged, and 15 percent are actively disengaged (Branham, 2005). The difference between “not engaged” and “disengaged” matters – actively disengaged employees are not only “dispassionate”. Instead, they are disgruntled enough to undermine the work of their team members (Krueger and Killham, 2006). However, Loehr (2005) suggested that reasonably few employees would choose to be unhappy at work. We are all inclined to think that objective work conditions determine job contentment. For example, someone with a dangerous and dirty job will obviously feel less engaged than a professional with a sunny corner office. According to Gallup Management results, that view is no longer considered valid. Workers experiencing the same lousy pay, intolerable noise, physical hardship, speed of production line and so forth can manifest profound or exceptionally high engagement scores. It depends on how their managers strive to build a strong foundation for better engagement (Thackray, 2001). This view is similar to that of AMMA who emphasizes the essence of leadership to achieve higher levels of engagement. We also need to highlight an important consideration made by Saks (2008). He reiterated that people employ and express themselves physically, cognitively, and emotionally during role performances during 306 Proceedings of Applied International Business Conference 2008 engagement. Engagement means to be psychologically present when occupying and performing an organizational role (Kahn, 1990). This does not mean that individuals do things outside their role requirements. Rather, it has to do with the manner in which they do what they are supposed to do in a particular role, not how they do things they are not required to do (Saks, 2008). Engagement is not about being innovative or doing more and doing things differently. It is about how you do what you are supposed to be doing. This is what makes engagement different from organizational commitment, job satisfaction, job involvement and workaholism as discussed below. 3. Why is work engagement different? Work engagement is distinct from other established constructs in organizational psychology, such as organizational commitment, job satisfaction and job involvement (Maslach, Schaufeli and Leiter, 2001). Organizational commitment differs from engagement in that it refers to a person’s attitude and attachment towards their organization. Engagement is not an attitude; it is the degree to which an individual is attentive and absorbed in the performance of their roles. And while organizational citizenship behaviour (OCB) involves voluntary and informal behaviours that can help co-workers and the organization, the focus of engagement is one’s formal role performance rather than extra-role and voluntary behaviour (Saks 2006). Engagement also differs from job involvement. According to May et al (2004), job involvement is the result of a cognitive judgment about the need satisfying abilities of the job and is tied to one’s self-image. Engagement has to do with how individuals employ themselves in the performance of their job. Furthermore, engagement involves the active use of emotions and behaviours in addition to cognitions. May et al (2004, p.12) also suggest that “engagement may be thought of as an antecedent to job involvement in that individuals who experience deep engagement in their roles should come to identify with their jobs.” (Saks 2006) Workaholism and work engagement overlap as far as feelings of being absorbed in one’s work are concerned. However, the underlying motivation of being completely immersed in one’s work differs. In the case of engagement this motivation is intrinsic (work is fun), whereas in the case of workaholism it is compulsive (being driven to work) (Schaufeli, Taris and van Rhenen, 2008). According to researchers, work engagement can be applied under the positive organizational behaviour (POB) or positive psychological construct (Bakker and Schaufeli, 2008; Seligman and Csikszentmihalyi, 2000). Engagement (especially absorption) comes close to what has been called “flow” that represents a state of optimal experience that is characterized by focused attention, a clear mind and body unison, effortless concentration, complete control, loss of self-consciousness, distortion of time and intrinsic enjoyment (Csikszentmihalyi, 1990). It is interesting to note that rather than a momentary, specific emotional state, engagement refers to a mood. It is a more persistent and pervasive affective-cognitive state that is not focused on any particular object, event, individual or behaviour (Schaufeli & Salanova, 2007). Previous research has attempted to measure the relationship between work engagement with many other constructs. Job Resources, Proactive Work Behaviour and Burnout have shown to have a positive relationship to work engagement and are often conceptualized together. The following paragraphs will illustrate the findings. 4. Work engagement and job resources Work engagement can be approached from the viewpoint of the Job-Demand-Resource (JD-R) model (Demerouti, Bakker, Nachreiner & Schaufeli, 2001; Salanova et al, 2005; Schaufeli & Bakker, 2004). Job demands are physical, psychological, social or organizational features of the job that require physical and/or psychological effort from an employee, and are consequently related to the physiological and/or psychological costs (ie strain). Job resources, on the other hand, are physical, psychological, social or organizational features of the job that are functional in achieving work goals, reduce job demands and the physical and/or psychological costs associated with them, and stimulate personal growth and development (eg Bakker et al, 2003, 2005; Demerouti et al, 2001; Hobfoll & Shirom, 2001). Previous studies have consistently shown that job resources such as social support from colleagues and supervisors, performance 307 Proceedings of Applied International Business Conference 2008 feedback, skill variety, autonomy, and learning opportunities are positively associated with work engagement (Bakker & Demerouti, 2007; Schaufeli & Salanova, 2007). Resources are not only necessary to deal with (high) job demands, but they also are important in their own right. Job resources are assumed to play either an intrinsic motivational role because they foster employees’ growth, learning and development, or an extrinsic motivation role because they are instrumental in achieving work goals (Bakker & Demerouti, 2008). Mental Emotional Physical Job Demands Strain Etc. Organizational Outcomes Support Autonomy Job Resources Motivation Feedback Etc. Figure 2: The Job Demands-Resources Model Source: Bakker and Demerouti (2007) Journal of Managerial Psychology, 22, 3. On a more general level, it was found that job resources are related to intrinsic work motivation (Jenssen, De Jonge and Bakker 1999; Houkes, Jannsen, De Jonge and Nijhuis 2001). Demerouti, Bakker, Nachreiner and Schaufeli (2001) successfully tested the Job Demand-Resources (JD-R) model (Figure 2) in a German sample. The JD-R model posits that job demands (ie physical demands, time pressure, shift work) are associated with exhaustion, whereas lacking job resources (ie performance feedback, job control, participation in decision making, social support) are associated with disengagement. Hence, the absence of job resources fosters disengagement, whereas the presence of job resources stimulates personal development and increases work engagement (Salanova & Schaufeli, 2008). Consistent with these notions about the motivational role of job resources, several studies have shown a positive relationship between job resources and work engagement. For example, Schaufeli and Bakker (2004) found evidence for a positive relationship between three job resources (performance feedback, social support, and supervisory coaching) and work engagement (vigor, dedication and absorption) among four different samples of Dutch employees. More specifically, they used structural equation modeling analyses to show that job resources (not job demands) exclusively predicted engagement, and that engagement is a mediator of the relationship between job resources and turnover intentions. The JD-R model is also incorporated to apply work engagement as mediator to proactive work behaviour as elaborated in the next section. 5. Work engagement and proactive work behaviour Work engagement covers the basic dimensions of intrinsic motivation, which ensures goal oriented behaviour and persistence in attaining objectives along with high levels of activation (ie vigour) as well as feeling enthusiastic, identifying with and being proud of one’s job (ie dedication). Since work engagement refers to high levels of energy, persistence, identification and goal-directness, it can be expected that high levels of engagement increase proactive work behaviour in the sense of personal initiative. Proactive 308 Proceedings of Applied International Business Conference 2008 employees show personal initiative and are action-oriented, goal-directed, seek new challenges, and are persistent in the face of obstacles. Job resources (ie situation cues) have an indirect impact on proactivity through work engagement, which is considered to be an indicator of intrinsic work motivation. Vigour Dedication Control Feedback Job resources Work engagement Proactive behaviour Proactive behaviour Variety Figure 3: Work engagement as mediator between job resources and proactive behaviour Source: Salanova and Schaufeli (2008) The International Journal of HRM, 19, 1. Salanova and Schaufeli (2008) suggest that instead of directly affecting proactive behaviour, job resources indirectly affect proactivity via increasing levels of work engagement (Figure 3). Their findings suggest that rather than considering proactivity as a personal disposition that is relatively stable across time and across work situations (eg Bateman and Crant 1993; Parker 2000), it may also be considered a specific work behaviour (ie in terms of personal initiative) that is related to perceived levels of job resources. Practically speaking in terms of Human Resource Management, the former view calls for recruitment and selection, whereas in the latter view proactivity may be fostered by an appropriate job (re)design; that is, particularly by increasing or supplying additional job resources (Salanova and Schaufeli, 2008). But what about relating work engagement to burnout? 6. Work engagement and burnout Work engagement is assumed to represent the opposite of burnout. Burnout is a work-related stress reaction that can be found among employees in a wide variety of occupations (Bakker, Demerouti & Schaufeli, 2002; Schaufeli & Enzmann, 1998). The syndrome is characterized by three related, but empirically distinct, elements: namely exhaustion, cynicism, and reduced professional efficacy (Leiter & Schaufeli, 1996; Maslach, Jackson & Leiter, 1996; Maslach & Leiter, 1997). Feelings of exhaustion or energy depletion are generally considered a core symptom of the burnout syndrome (e.g. Shirom, 1989). Cynicism refers to the development of negative, cynical attitudes toward work and the people with whom one works (eg clients and colleagues). The third dimension of burnout, reduced professional efficacy refers to the belief that one is no longer effective in fulfilling one’s job responsibilities. Thus, burned-out individuals suffer from feelings of fatigue, behave indifferently toward their work and clients, and they believe that their performance has suffered accordingly (Bakker, van Emmerick & Euwema, 2006). Burnout researchers define engagement as the opposite or positive antithesis of burnout (Maslach et al, 2001). According to Maslach et al (2001), engagement is characterized by energy, involvement and efficacy, the direct opposite of three burnout dimensions of exhaustion, cynicism, and inefficacy. Research on burnout and engagement has found that the core dimensions of burnout (exhaustion and cynicism) and engagement (vigor and dedication) are opposites of each other (Gonzalez-Roma et al, 2006). Job Demands and resources can also be controlled to experience a crossover phenomenon between burnout (ie exhaustion, cynicism and reduced professional efficacy) and work engagement (vigor, dedication and absorption) (Bakker, van Emmerick & Euwema, 2006). 309 Proceedings of Applied International Business Conference 2008 Burnout Engagement Exhaustion Energy Vigor Cynicism Identification Dedication Lack of professional efficacy Absorption Figure 4: The relationship between burnout and work engagement Source: Schaufeli and Salanova (2007), Managing Social and Ethical Issues in Organizations, 135-177. Two distinct positions exist on the exact nature of the relationship between engagement and burnout (Figure 4). The first position views burnout as an erosion of engagement with the job. Maslach and Leiter (1997) proposed that work engagement and burnout constitute the opposite poles of a continuum of work related well-being. In this way, burnout constitutes the negative pole, and engagement the positive pole. Given Maslach’s conceptualization of the three dimensions of burnout, this position assumes that engagement represents the opposite of the three corresponding aspects of burnout, namely energy, involvement and efficacy. Maslach and Leiter proposed that the opposite scoring pattern on the three aspects of burnout implies engagement. By this rationale, low scores on the emotional exhaustion and cynicism scales, combined with a high score on the professional efficacy scale, would suggest higher levels of engagement (Lynch, 2007). 7. How is work engagement measured? Several instruments have been applied by academics and practitioners to measure work engagement. The Utrecht Work Engagement Scale (UWES) (Schaufeli and Bakker, 2003; Schaufeli et al, 2002) includes items for the assessment of the three engagement dimensions included in Schaufeli et al’s (2002) definition: vigor, dedication and absorption. The UWES has been validated in several countries, including China (Yi-Wen and Yi-Qun, 2005), Finland (Hakanen, 2002), Greece (Xanthopoulou et al, n.d.), South Africa (Storm and Rothmann, 2003), Spain (Schaufeli et al, 2002) and The Netherlands (Schaufeli and Bakker, 2003; Schaufeli et al, 2002). An alternative instrument for the assessment of work engagement is the Oldenburg Burnout Inventory (OLBI) (Demerouti and Bakker, n.d.). This instrument has originally been developed to assess burnout, but includes both positively and negatively phrased items, and hence, it can be used to assess work engagement as well (Gonzalez-Roma et al, 2006). The OLBI includes two dimensions: one ranging from exhaustion to vigor and a second ranging from cynicism to dedication. Researchers interested in assessing work engagement with the OLBI can recode the negatively framed items (Bakker and Demerouti, 2008). The most widely used and validated instrument for the measure of burnout is the Maslach Burnout Inventory (MBI). Increasing interest in burnout among a broader range of professions saw the development of a general version of the MBI (ie MBI-General Survey, or MBI-GS). According to Lynch (2007), this version of the instrument conceptualized burnout in slightly broader terms, in that subscales refer to aspects of the job beyond just the personal relationships that may be a part of the job. Thus, the labels for the three subscales in the revised measure include exhaustion, cynicism and reduced professional efficacy. While the MBI-GS uses slightly revised items and revised subscale labels, the overall dimensions and structure of the measure remain the same as the original (Maslach et al, 2001). Another instrument created by Gallup is a questionnaire which pinpointed 12 key employee expectations that, when satisfied, form the foundation of strong feelings of engagement. The engagement index slots people into one of three categories: 1) engaged employees – they work with passion and fee a profound connection to their company. They drive innovation and move the organization forward; 2) not-engaged 310 Proceedings of Applied International Business Conference 2008 employees – they are essentially “checked out”. They are sleepwalking through the work day. They are putting in time, but not enough energy or passion into their work; and 3) actively disengaged employees – they are not just unhappy at work; they are busy acting out their unhappiness. Every day, these workers undermine what their engaged co-workers accomplish (Thackray, 2001). The Gallup method deploys a feedback methodology for improving engagement by creating a factual base for discussion and debate of the causes behind the numbers. It yields actionable input from staff and managers for changes in attitude, conduct, policies and processes (Gallup Management Journal, 2001). Towers Perrin (2008) conducted its most recent employee survey to determine employees’ engagement levels based on questions that measure their connections to the organization across three dimensions: 1) rational: how well employees understand their roles and responsibilities; 2) emotional: how much passion and energy they bring to their work; and 3) motivational: how well they perform in their roles. Based on statistical analysis, survey respondents are clustered into four groups: 1) engaged: those giving full discretionary effort, with high scores on all three dimensions; 2) enrolled: the partly engaged, with higher scores on the rational and motivational dimensions, but less connected emotionally; 3) disenchanted: the partly disengaged, with lower scores on all three components of engagement, especially the emotional connection; and 4) disengaged: those who have disconnected rationally, emotionally and motivationally. The ability to analyse the findings by adapting any of the instruments above provide the results necessary to conclude the engagement levels of employees for further action. In the long run, organizations are interested to discover how this equates to performance. Hence, from the measurement of work engagement, it was found that performance was the underlying consequence of high levels of work engagement. 8. Work engagement and performance The world's top-performing organizations understand that employee engagement is a force that drives business outcomes and is a leading indicator of financial growth. Organizations that embraced employee engagement fared better in terms of company focus, performance, staff retention, morale and, crucially, profitability (Smythe, 2007). Beyond the dramatic difference engaged workgroups show in productivity, profitability, safety incidents, and absenteeism, engaged organizations have 2.6 times the growth rate in earnings per share (EPS) compared to organizations with lower engagement in the same industry (Robison, 2008). High levels of work engagement have been found to be predictors of a healthy service climate, organizational citizenship behaviours, organizational serving behaviours and high employee performance (Bakker et al, 2004; Salanova, Agut & Peiro, 2005). So when customers are scarce and money is tight, closer attention to the customer, better management, and an emphasis on employee engagement can create margins that will keep companies running. These strategies also make businesses more profitable and set them up to take advantage of the economic upswing when it comes (Robison, 2008). Recent research has shown that engaged employees often experience positive emotions (Schaufeli and Van Rhenen, 2006), and this may be the reason why they are more productive. Happy people are sensitive to opportunities at work, more outgoing and helpful to others, and more confident and optimistic (Cropanzano and Wright, 2001). Engagement is positively related to health, and this would imply that engaged workers are able to perform well. One important reason why engaged workers are more productive may be their ability to create their own resources. In comparison with non-engaged employees, engaged employees are better able to mobilize their own job and personal resources that, in turn, fuel future engagement and so forth. In most organizations, performance is the result of the combined effort of individual employees. It is therefore conceivable that the crossover of engagement among members of the same work team increases performance. If colleagues influence each other with their work engagement, they may perform better as a team (Bakker and Demerouti, 2008). The JD-R model of work engagement below (Figure 5) shows how this concept is applied. It is assumed that job resources and personal resources independently or combined predict work engagement. Further, job and personal resources particularly have a positive impact on engagement when job demands are high. Work engagement, in turn, has a positive impact on job performance. Finally, employees who are engaged 311 Proceedings of Applied International Business Conference 2008 and perform well are able to create their own resources, which then foster engagement again over time and create a positive gain spiral. Job Demands Job Resources - Autonomy Performance Feedback Social Support Supervisory Coaching Etc. - Work Pressure Emotional Demands Mental Demands Physical Demands Etc. Work Engagement Performance - Vigor - Dedication - Absorption - Personal Resources - In-role Performance Extra-role Performance Creativity Financial Turnover Etc. Optimism Self-efficacy Resilience Self-esteem Etc. Figure 5: The JD-R Model of Work Engagement Source: Bakker and Demerouti (2008) Career Development International, 13, 3, 218. In this model (Figure 5), employees who score high on optimism, self-efficacy, resilience and self-esteem are well able to mobilize their job resources and generally are more engaged in their work (Bakker & Demerouti, 2008). This equation then leads to performance. 9. Implications for organizations The term “engagement” is useful, emotionally honest and authentic because of its links with commitment, bonding and even affection. However, it is important to distinguish between the process of engaging employees by helping them to love their jobs and to want to give their best to the jobs. Engaging employees is important whatever the potential of the employee, but it is crucial for truly talented people who are likely to have leadership potential either now or in the future (Woodruffe, 2006). Organizations often assumed that replacing one employee with another was relatively easy. However, they will soon find it hard to fill jobs with talented people. According to Rutledge (2006), the essence of employee retention rests at the grassroots level with the relationship between managers and employees. This relationship is fundamental to any initiative related to improved employee engagement in the workplace. It is the single-most important element in an employee's overall employment experience. Employees look to their managers for challenging work, recognition of their achievements and opportunities to learn and grow on the job. Managers who fail to meet their employees' expectations will lose their top talent to another firm. This view is consistent with that of AMMA and Gallup Management. Work engagement may be considered as an essential positive element of employee health and well-being. By building engagement, synergy is created between individual employees and the organization as a whole, meaning the optimal outcomes for both occur. Schaufeli and Salanova (2007) elaborated that for engaged employees, these outcomes might include: 312 Proceedings of Applied International Business Conference 2008 (a) positive job-related attitudes and a strong identification with one’s work; (b) good mental health, including positive emotions and a lower risk of burnout out; (c) good performance; (d) increased intrinsic resources; and (e) the acquisition of job resources and personal resources, particularly self-efficacy. (Refer to JD-R Model of Work Engagement.-Figure 5) Moreover, engagement is essential for today’s organizations, given the changes they are currently facing. Therefore, the crucial question for organizations is how to increase levels of engagement among their employees. Human resource managers can do several things. Important starting point for any active policy is the measurement of engagement and its drivers among all employees, for example by using the JD-R model. On the basis of this assessment, it can be determined whether individual employees, teams, job positions, or departments score low, average, or high on work engagement and its antecedents. Interventions should then focus on both individuals (in the context of the organization) and the organization at large (Bakker & Demerouti, 2008). According to Towers Perrin (2008) the alarming figures of the recent survey indicated that organizations must do something about the “enrolled” people – those described as capable but not fully committed. They found that employees highlighted management and leadership ability as the underlying factor causing disengagement. Managers were employing “hard” methods and were not looking into the interests of the employees for them to exhibit engagement. Today’s employees are ready to perform and look forward to forging a career with good organizations. But organizations must make themselves worthy for this purpose. One last implication is closing the engagement gap. Towers Perrin (2008) highlighted in their study that closing the gap is what matters. They found that four out of five workers are not living up to their full potential. They also found that employers are not harnessing the full power of their workforce and achieving the performance lift that high engagement delivers. The reason why this is important is for two reasons: 1) the global knowledge-based economy is dependent on people and their knowledge, skills, energy and dedication; and 2) demographic trends suggest looming shortages of key skills across industries and regions of the world. How then do we close the engagement gap? Towers Perrin (2008) advocated a simple anecdote: 1) effective and engaged leadership; 2) alignment of workforce strategies with business priorities and 3) workforce segmentation under the same microscope as customers. Closing the engagement gap is essential to sustain high performance. All humans exhibit both rational and emotional behaviour. In order to truly engage them, an organization must reach out to them on both (Townsend & Gebhardt, 2008). The employees of virtually every organization in the world refer to their place of work as “my company” when they are at home. Employers benefit by having a flexible, committed and highly motivated pool of talent who have a strong sense of purpose about their work (Smythe, 2007). Taking advantage of that natural feeling of ownership by extending trust and empowerment to all employees and giving them the means to be engaged is in the best interest of the employer, the employees, and their customers (Townsend & Gebhardt, 2008). It gives staff a say in what will add value to the business and create an attractive and creative place to work (Smythe, 2007). 10. Conclusion All managers should make work engagement their priority. Employees today are interested in their jobs and their future. They want companies to show commitment towards their desire for consistent career development. As being defined by Saks (2006) in his interpretation of Kahn (1990), being engaged in one’s work is not doing things beyond their job description. Rather, it is an in-role requirement. Work engagement as mediator does result in extra-role behaviours (that is organizational citizenship behaviours) sought after by organizations. Towers Perrin (2008) survey also indicated that there is a worrying percentage of workers who are capable but who are not engaged. Therefore, increasing the level of engagement is what organizations seek to achieve. 313 Proceedings of Applied International Business Conference 2008 Work engagement has been proven to show sustainable increment in financial performance and organizational capability. Even though it has been conceptualized differently by academics and practitioners, they are attempting to portray engagement as a motivational element to spark an employee’s enthusiasm towards their work duties. Schaufeli et al (2002) considers engagement as vigor, dedication and absorption whilst Towers Perrin as rational, emotional and motivational. The instruments they use also cover questionnaires that are essentially different but meet the same objective. Those questions attempt to measure the level of engagement; the burnout method is used as a positive antithesis of engagement. In whatever constructs or interpretations, engagement aims to benefit both workers and employers. If organizations recognize that employees need to feel engaged in their work in order to increase performance, it will be in their utmost interest to raise the engagement pole to higher limits. The management of human resources has shifted towards the “people first” idea. Because people are targeted to achieve competitive advantage and because they cannot be imitated, it should be the ultimatum of organizations to sustain engaged employees at the same time sustaining high performance. Malaysia is no exception towards the achievement of this ultimatum. Towers Perrin (2008) found that one out of four Malaysian workers is engaged as opposed to the global one out of five. Malaysia is higher than Singapore in terms of engagement levels and labour mobility. Hence, research in this discipline should be encouraged as the importance of it is critical to continued foreign direct investments and avoidance of high labour turnover. It is with this view that academics and practitioners alike should continue with their efforts for future research in work engagement. 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