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The assessment for this module is in two parts:
- A 7000 word business report about the business issue that you have investigated and a short reflective report of 500 words.
Business Report
You are required to write a report on the research that you have carried out for this module. As previously explained, the report should be written in the formal academic report style, and you are likely to include the following sections:
- Abstract
- Literature review
- Results
- Conclusions
- References
- Introduction
- Methodology
- Discussion
- Recommendations
- Appendices.
Reflective Report
You are required to write a short reflective report of 500 words about the business issue that you have researched. In writing this report:
- Reflect on the reasons that you chose the topic. Did you manage to meet your original objectives?
- Reflect on the parts of the module that you found most difficult. Why were they difficult? What have you learnt from that?
- Reflect on what you have learnt about carrying out secondary research. How can those lessons be used in other learning?
- Reflect on what you learnt from carrying out primary research. What would you change if you were to carry out the research again? What were the most difficult aspects?
- Think about your own CPD record. Update it in accordance with what you have learnt from this task.
- Think about your career. Have your career aspirations changed at all as a result of your experiences?
Solution:
A strategic evaluation of effectiveness of employee engagement in absence management.
A case study of The Arora Group Organisation in UK.
ICS student number:
CIPD Membership Number:
Investigating Business Issues in Human Resources – Module (7IBI) (40572/14)
Abstract
In this business report, a detailed analysis of the effectiveness of employee engagement in absence management this is while focusing on Arora group of companies based in UK. The need for carrying out this study is informed by the need of appreciating the modern approaches of employee engagement and their impact on the organisation performance. The employees who work in the organisation HR function have been identified to be used in this report for achieving the set project objectives and aims. In conducting an evaluation of this report, a critical literature review of the employee engagement has been carried out. A theoretical analysis note that employee engagement approaches have a direct impact on the employees readiness to attend to their daily roles by being present in their organisations. On basis of the findings analysis, it is clear that employee engagement similarly impact on the scope of employees performance in Arora Group of companies. It is with the full capabilities noted which promote the achievement of organisation set goals. Additionally, obtained findings sourced in this report note that employee engagement strategy represent a fresh approach of practice leading to an increase in employees focus on improvement of their connections with the organisation. This is for a long period, gaining relevant experience and hence increased productivity due to lowered potential of absenteeism levels.
The rationale of carrying out this study is guided by the information that there exist a large literature gap in the area of employee engagement and how this influence absence management strategies. There prevail a major gap in the literature on the concept and how the process can be implemented successfully in modern organisations. It is specifically the situation owing to the increased technology popularity in today business environment. However, it is elaborate from study findings that in today COVID-19 pandemic and future best practice, the employee engagement concept directly impact on the level of employees performance and willingness to be present in their organisation. There is a possibility that if well integrated with all measures prioritised, employee engagement is successful with employees absenteeism in workplace successfully managed.
In overall, it is clear in the reviewed research works that managing the employees absenteeism in workplace are dependent on the employee engagement approaches in a general point of view. It is clear that the available past literature and also through the different outcomes obtained in this report, appropriate findings are obtained. It is noticeable that employees absenteeism levels is evidenced as significantly high for the employees remote working particularly in the current COVID-19 pandemic contributing to increasing on their overall performance well highlighted.
In this report, a summary of the generated recommendations include;
- Within a period of 6 months, achieve 100% of an increased employee engagement with a successful mitigation of absenteeism cases
- In a period of 1 year, achieve 80% reduced absenteeism cases in the organisation
- To initiate coaching programs to all HR leaders to achieve 100% of increased employee engagement in all the operations of the organisation
- To initiate a team development program customised for the organisation
You would expect to see a summary of the recommendations included within an abstract.
Table of Contents
Abstract…………………………………………………………………………………………………………………………………………………..3
1.2. Organisation Overview.. 2
2.2 Employee Engagement Concept in Modern Business Environment 2
2.3 Employee Engagement and Absenteeism.. 2
2.4 Strategies of Improving Employee Engagement 2
2.5 Critique Analysis of the findings from the Literature Review.. 2
Type of Data- Quantitative/Qualitative. 2
3.3 Data Collection and Sampling. 2
3.7 Threats of the Data Findings 2
3.8 Reliability and Validity of Findings 2
4.0 Research Findings of Primary Research.. 2
4.2 Employee engagement strategies in Arora Group. 2
4.3 Discussion Integrating Primary and Secondary Analysis. 2
Evaluation of Options for Improvement 2
5.0 Conclusion and Recommendations. 2
References and Bibliography.. 2
ICS Learn Investigating a Business Issue.. 2
Appendix 3: Implementation Plan of Recommendations 2
Appendix 4: Cost Benefit Analysis………………………………………………………………………………………………………57
1.0 Introduction
1.1. Context of Research
Employee engagement is a concept with multiple definitions. CIPD (2021) highlight that there are more than 50 definitions with the earlier definition focusing on individual’s expression in a physical, cognitive and emotionally while interacting with their job roles. This definition is further expounded by Harter et al. (2002) that identified employee engagement as being inclusive of factors of job clarity, job resources, work based on an individual strength, recognition, social support and cohesion, personal development, employee voice, meaningfulness of work and colleague’s motivation. The more the employee’s engagement, the higher will be the value employees evidence in their roles.
In organisations that lack appropriate employee engagement, Gallup (2020) report had noted that disengaged employees are characterised by 37% higher rates of absenteeism. Also, the report identified the employees as having 18% reduced productivity and 15% lowered profitability. Hence, the cost of disengaged employee is approximately 34% of their annual salary. This can be equated to £3,400 in every £10,000 made by the employees. Thus, it is evident that organisations lacking an appropriate employee engagement suffers immensely in their operations.
Disengaged employees often cause dissatisfaction and disturbance in organisation. While actively engaged employees might practice reduced self-esteem if the overall engagement level of the team falters. However, it might not elevate the disengaged employee to the actively engaged workers, it will cut down the loss of business and resources and eventually help to fuel the growth of an organisation. For customer satisfaction, better productivity, profit and cultivating driven engaged employees is a must. The view is affirmed in StaffConnect (2020) report that note that organisations with a high-level employee engagement contributes to 37% less cases of absenteeism as opposed to the ones in less invested workplace and to outperformance competitors by more than 202%.
1.2. Organisation Overview
Arora Group (a hospitality company with overall 12 hotels across London) had first opening back in 1999 working closely with IHG, Accor, Marriott and Hilton brands with total headcount of 2051 employees. The HR department plays an extremely important role in the delivery and implementation of our organisation’s culture by implementing policies and engagement activities. Our team includes a Director, a Manager, an Advisor and an Executive.
My role within HR is to implement different talent management practices in line with the organisation culture, to ensure organisation achieves its core set objectives. I ensure that resourcing, induction, remuneration, retention and leaving exercise are effectively managed within the organization culture.
Although with the effort of HR department, the employee engagement level has been as low as 60% with the absenteeism rates being 15%. This is a significant high rate of absenteeism as AIHR (Analytics) report indicate the rule of the thumb as 1.5% absence rate being a healthy rate. In the Arora Group, the low employee engagement and high employee absenteeism leads to a reduced productivity. Hence, it is instrumental for organisations and employers to prioritise on approaches of managing employee absenteeism by harnessing the employee engagement level.
1.3 Aims and Objectives
Aim: This research is reviewing and developing employee engagement strategy for The Arora Group organisation in solving employee absenteeism levels.
Research Question: What is the best employee engagement strategy applicable for The Arora Group organisation in solving employee absenteeism levels?
In order to achieve the noted research aim, the different objectives that could be pursued are:
- To conduct a critical review on the concept of employee engagement to understand how different concepts determines the strategy that can be used in its implementation
- To carry out literature on the approaches of implementing a successful employee engagement strategies
- To investigate from the literature on the factors that increase the employee engagement
- To analyse internal data on the factors which impact employee engagement within the organisation
- To determine quantitatively on the strategies to enhance employee engagement within the organisation
- To identify different challenges faced in Arora Group in successful implementation of employee engagement strategies
2.0 Literature Review
2.1 Chapter Background
In this chapter, it offers an in-depth literature review on the role of Employee Engagement (EE) on employees absenteeism in a modern business environment organisations. The lack of an effective employee engagement means that employees are not committed to their functions and organisation hence most likely missing their work roles. It is in this regard, the employees would demonstrate lowered resilience, reduced wellbeing hence affecting their general performance and productivity. A detailed critique of the different sources evidence on this concept with their reliability and validity evaluated in the critique part. At a later step of this research, appropriate report findings and discussion would be based on the reviewed literature with critique of findings obtained.
2.2 Employee Engagement Concept in Modern Business Environment
From the available literature, it is evident that the concept of Employee Engagement (EE) has attracted significant relevance in the past 10 years. In affirming this view, Smith and Bititci (2017) note that employee engagement is used as a tool for strategic partners in business operations. This link is identified in Kowalski and Loretto (2017) as employee engagement influences the employees’ performance and productivity, which influence their presence in their workplace. Within the company with engaged employees, there is less turnover, fewer incidents of employee theft, better attendance, improved performance and fewer safety mishaps.
Enhanced engagement occurs when there are optimistic working relationships, when workers are engaged, they care about the well-being of their organisation and work much harder to ensure it is successful (Sirisetti, 2012).
By focusing on the public sector, Severin et al. (2021) ranked successful employee engagement as having positive implications on achieving successful absenteeism management. This report provides available literature on the concept of employee engagement in absence management based on this background information.
Further, adopting the definition of CIPD (2019), employee engagement is a practice adopted to achieve a mutual gain in set employee relations, resourcing the best employees (well-being and job satisfaction) and achieving the best for an organisation’s work roles (performance, commitment). Gallup (2020) affirmed this view, which notes that as of 2019, approximately 40% of all employees were significantly engaged, inclusion, enthusiastic, and commitment in the execution of their allocated job functions. The report findings noted by Clear Review (2019) informed by a survey that targets 4,500 employees, noting that 45% of the overall engagement was evidenced among the employees in the UK. This is contrary to countries including France with 54%, Australia for 56% and in the USA at 60%. Additionally, in the organisations which have managed to invest in the employee engagement significantly, they have managed to gain from increased customer satisfaction (70%), reduced absenteeism rates amongst the employees (50%), ability to leverage on competitive advantage (40%), achieving profits and increased quality in products and services delivery.
2.3 Employee Engagement and Absenteeism
In order to demonstrate the existing correlation between employee engagement and absenteeism, Mackay et al. (2017) study can be put into account, which focuses on investigating incremental validity of employee engagement. This study evidenced that the existence of a high employee engagement contributes to high-level job satisfaction, job inclusion, and organisational commitment. It is evident from the study that employee engagement efficiently and effectively contributes to capturing relevant employee attitudes. The findings were nevertheless different from Forte (2017) study that had focused on evaluating the different strategies for reducing employee absenteeism for a sustainable future. The study had found that increased absenteeism rates in modern workplaces lead to positive social change by increasing economic growth. Hence, the study found the broadness of employee engagement and its application in modern organisations. However, Anitha (2014) supported the findings, which note that employee engagement has significant implications on employee performance. Hence, the study recommended employers consider the root causes, including burnout issues, disengagement levels, and demanding necessary accommodations.
Further, the Merrill et al. (2013) report noted that employee engagement directly implies employees’ job performance and absenteeism rates. In this regard, through the adoption of different employee engagement, they have a positive implication on job performance, specifically regarding employee absenteeism. The findings in this source are similarly supported by Hoxsey (2010) report, which recommended the best employee engagement strategies to improve the overall employees’ happiness, fairness in their inclusion in the organisation preparations, and ensuring that a culture of recognition and employee voice is advanced. These findings are nevertheless different from West and Dawson (2012) study, which is a book that had focused on evaluating the employee’s engagement in the UK National Health System. Their findings noted that having individual and organisational outcome members such as staff absenteeism and turnover, satisfaction,, and mortality affects employee engagement success. For instance, in a case the absenteeism cases are high, customised employee engagement strategies would need to be integrated to solve this problem.
Finally, Osborne and Hammoud (2017) adopted the self-determination theory in establishing the best employee engagement strategies. Through the application of the theory, the study identified the best strategies as including total reward system, employee recognition, empowerment of all employees and creating a strong and sustainable bond between the leaders and employees. Simmons (2018) supported these findings, which highlighted the best strategies for including the use of relevant incentives and rewards, deliberated resourcing strategies, successful and detailed communication, leading by example, and leverage on employee innovativeness and ownership. It is through this that absenteeism rates are similarly reduced for a positive gain in an organisation.
2.4 Strategies of Improving Employee Engagement
In the highly competitive business environment, survival of organisations is dependent on their capacity to maximise profits by leverage on the capabilities of their human resources. According to Osborne and Hammoud (2017), to achieve this, organisations invest on appropriate strategies of employees engagement. Despite of this, Royal (2019) research referring to Gallup’s State of the Global Workplace report noted that only 15% of all the employees globally are committed in their job roles. This means that limited organisations have been able to commit time, talents and energy in increasing their value to teams and advancement of organisation initiatives. Nevertheless, CIPD (2020) report reviewing more than 500 studies identified that there lacks a single approach that can be adopted in harnessing the employees engagement levels. The best practice which can be adopted in different organisations would be by integrating appropriate antecedents of engagement in their operations.
Individual Psychological States
The different available studies have directly linked the concept of employee engagement with personality of employees. For instance, Young et al. (2018) evidenced that personality traits are directly linked with the level of employee engagement in an organisation. The study had focused on 114 independent samples (N= 44,224) in generating appropriate estimates on the relationship of personality traits and employee engagement. This is also affirmed by Shuck et al. (2011) study which had proposed dispositional characteristics as one of the three antecedents of engagement. This is nevertheless distinct from Smithikrai and Suwannadet (2018) which had identified the personality traits of proactiveness, positive affectivity and conscientiousness as being critical factors establishing on the scope of employee engagement. The study evidenced on lack of a clear literature on the best practice for employees being predisposed in engaging in assigned work functions. To avert this problem, CIPD (2020) research note that a significantly time-bound state of engagement is potentially impacted by individuals with a more permanent psychological traits and through possess of right capabilities for the job.
Job Design
As evidenced in Anjum et al. (2018), 80% of all the productivity issues in an organisation are due to the extent in which jobs are designed on basis of the organisation environment. Adopting the definition of Dutschke et al. (2019), job design is a process used to decide the contents of the job in regard to the teams of techniques, systems and procedures and relationships. These exist between the job holder and their superior subordinates and colleagues. To demonstrate on the extent in which job design can be used to achieve the employee engagement, Okolo et al. (2019) study which adopted the Job Characteristics Model (JCM) developed by Hackman and Oldham (1980). According to this model, a job is inclusive of five job characteristics including task feedback, job autonomy, variety of skills, task identity, task significance and skill variety. Based on this, different scholars of the employee engagement literature have managed to link the job design in harnessing the employee engagement. For example, Akob et al. (2020) note that Kahn’s theory of engagement (1990) as informed by the Hackman and Oldham’s theory (1980) which note the jobs characteristics as affecting employees attitudes and behaviours. Hence, the author noted that the type of organisation design evidence the scope in which the employees are engaged with their work roles. In a different context, Borst et al. (2019) study focusing on a survey involving 9,465 respondents in the public administration evidenced on the appropriateness of job demands resources model of work engagement. Similarly, based on Aktar and Pangil (2017) study on the banking sector employees in Bangladesh involving 376 employees adopted a social theory in demonstrating on the link of job design and employees engagement. The study evidenced that an organisation could achieve what it gives which means enriching a job autonomy, a task feedback skill variety, task significance and task identity, the employees are substantially engaged. This is specifically critical for line managers and teammates mandated to offer the employees with prompt support and feedback and establishing autonomy level.
Leadership and Management
There exist substantial research body which link the positive forms of leadership and management on employees engagement. For instance, Nikolova et al. (2019) study using data sourced from 759 employees engaged in a hotel chain in Netherlands found on the impact of leadership and management in harnessing the employee engagement levels. Practically, this note that the relevance of leaders in harnessing engagement amongst their employees. This is supported by Milhem et al. (2019) study which had focused on evaluating how the transformational leadership style impact on the employee engagement levels. Through a focus on 338 full-time employees working in ICT sector in Palestine, the study evidenced the transformational leadership as having positive implication on the employee engagement. In a different context, Sahu et al. (2017) had noted that the leadership and management does not directly impact on the level of employee engagement. Nevertheless, the study noted on the need of having the leaders and managers feeling substantially supported and empowered in adopting the type of leadership style authentically. Also, the leaders emotional intelligence has a direct influence on how leadership and management assists in achieving a successful employee engagement.
Organisation climate/culture
In a general context, organisation climate and culture influence on the employees psychological safety and emphasis on the service quality. This is supported by Clement and Eketu (2020) study focusing on the 384 employees from 21 selected deposit money banks evidenced the rewards, autonomy and recognition/encouragement as being antecedents of organisation climate. This on the other hand influence the affective and cognitive engagements as appropriate measures of employee engagement. This is best explained by Brenyah and Obuobisa-Darko (2017) study which introduced a high-performance organisation culture. The study evidenced a high-performance cultures as elaborately outlining behaviours and norms that are healthy and supportive. By noting on the factors of organisation climate, CIPD (2020) had recommended for organisations to ensure they integrate mindfulness techniques and flexible working as part of increasing the overall employee engagement.
2.5 Critique Analysis of the findings from the Literature Review
For the various identified studies in this report, their research design include quantitative, qualitative, secondary research and mixed methodology research. Irrespective of the choice of methodology used in any of the studies, a significant number of respondents have been taken into consideration offering a detailed information and in-depth data. Apart from the quality websites which have similarly been selected including CIPD which are similarly based on quality and detailed research and data being replicated. A case example is in CIPD (2020) which involved a collection of new data (primary research) and an in-depth review of readily available data (secondary research) all relevant for answering the posed questions in this research. Similarly, Clear Review (2019) which is also a quality website had used respondents of 4,0000 employees which affirm on the quality of the study.
Further, Young et al. (2018) study had referenced approximately 44,224 respondents. The respondents were from different sectors affirming the study validity and reliability hence replicable in varying sectors. Similarly, Shuck et al. (2011); Smithikrai and Suwannadet (2018); Anjum et al. (2018) had adopted the quantitative research approach to obtain detailed research outcomes appropriate for this study findings. All the identified studies had employed different variables which note on the level of broadness of the studies focus and the results obtained. As opposed to the study, the Dutschke et al. (2019) study had applied on the qualitative research methodology with interviews being adopted targeting approximately 18 leaders and managers in different organisations. The reference of more than 18 respondents is an affirmation of the quality of the study and applicability of the findings in different contexts. Additionally, Osborne and Hammoud (2017), West and Dawson (2012) and Merrill et al. (2013) had used the primary data with support from the secondary research affirming on its quality of the overall validity of the entire findings of the study. Studies including Forte (2017) and Anitha (2014) had delved on the use of systematic research approach with the findings obtained being relevant for the study and its focus. This also evidence on the trustworthiness of the study owing to their effectiveness and appropriateness in referencing and replicability of the study.
In this entire literature review, all sources selected were up-to date as the concept of employee engagement and employees absenteeism is always changing. The entire studies identified for this report are not old than 5 years since being published. Also, most of the studies in the current and majorly published in years 2019, 2020 and in 2021. This note on the high-level reliability and validity of the study findings offering appropriate results on the effectiveness and efficiency of the current study.
2.6 Chapter Conclusion
In line with the generated sources, it is clear that employee engagement set strategies directly correlate with absence management. However, very few research studies have directly associated employee engagement and also absenteeism rates. Therefore, it is essential to conduct increased research to pursue different factors that harness the absence management through the application of various employee engagement. It is the existing gap that this study intends to bridge by highlighting the extent to which the different employee engagement strategies directly link with employee absenteeism. In line with the findings obtained in this report, appropriate conclusions and recommendations would be generated as new research work to note how the two variables are interlinked.
3.0 Research Methodology
For this study research methodology, this has been applied in order to attain aims and objectives evidencing their relevance. The research methodology which has been applied in current report was in the form of research onion. This is identified in Saunders and Lewis (2012) to be inclusive of the research philosophy, research design, research strategy and data collection strategies.
3.1 Research Philosophy
This research has focused on the use of positivist philosophical position. The reason for using this is that it provides an opportunity to evaluate the causal link between employee engagement and other variables, including absenteeism and employee retention in Arora Group. The research area in this report is at all times changing and not constant.
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