Discovering The Connection: The Impact Of Organizational Performance And Employee Value Proposition On Employee Engagement

Abstract

Purpose: This study explores the nuanced relationship between Organizational Performance and Employee Engagement, with a specific focus on how different aspects of the Employee Value Proposition (EVP) influence engagement outcomes within an organizational setting. The research aims to provide a detailed understanding of the strategic role of EVP in enhancing employee engagement and, by extension, organizational performance.

Methodology: The research utilized a quantitative design, employing stratified random sampling to collect data from 150 employees across various departments of a single organization. Primary data were gathered through structured questionnaires that focused on perceptions of EVP components and their relation to employee engagement. Statistical analyses included Pearson correlation to assess the relationship between organizational performance and employee engagement, and ANOVA to determine the impact of various EVP components on engagement levels.

Findings: The study confirmed a perfect positive correlation between organizational performance and employee engagement (Pearson Correlation = 1.000, p < .0001). Significant variance in engagement levels was observed depending on the EVP components, with career development opportunities and work-life balance initiatives notably influencing higher engagement levels. For example, career development had a strong positive impact on engagement (F = 6.628, p < .0001), and work-life balance initiatives showed a moderate positive impact (F = 4.078, p = .004).

Research Implications: The findings underscore the importance of tailored EVP strategies that align with organizational goals and employee needs. This research contributes to strategic human resource management by highlighting how targeted improvements in EVP components can significantly boost employee engagement and organizational performance.

Originality/Value: This study extends the existing literature by demonstrating the direct impact of organizational performance on employee engagement and detailing the specific roles of various EVP components. It offers actionable insights for organizations to enhance their strategic HR initiatives, thereby fostering a more engaged workforce.