Title

Low employee engagement results in high attrition and low productivity: a case of a private textile company in Pakistan

Degree

Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award

Spring 2019

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Keywords

Employee motivation | Business and Economics-- Human Resources & Personnel Management | Business and Economics -- Workplace Culture

Executive Summary

Employee Engagement in different units of the same organization or between different line managers may vary substantially and impact business performance outcomes in many different ways. This research project evaluates and assesses the relationship between various dependent and independent variables that contribute to Employee Engagement and their impact on overall business performance indicators including Productivity, Profitability and Attrition. The scope of the study covers; Relationship and impact of Employee Engagement on attrition and employee productivity, review of outcomes across different business units in the same organization and, proposing effective action planning methods to support improvement in Employee Engagement. The study is based on several literatures, interviews with different business leaders, research of survey outcomes from a world-class Employee Engagement tool, and comparisons with global database of different engagement scores which is further explained below. The engagement scores and surveys were studied for a Case Textile Company in Pakistan. Data was extracted from 132 respondents and specifically focused on one of the entities of the organization and covered 6 separate business units located across Punjab and Sindh. The results were benchmarked with Gallup global database, which captured data points and scores for more than 30 countries including Asia and particularly Pakistan. The study aims to substantiate the relationship between Employee Engagement and various Business indicators. The results of the study indicate that Employee Engagement is directly related to each of the Business Outcomes. 71% of employees in the organization are highly engaged, 19% are not engaged and 10% of the employee are actively disengaged. After reviewing the data on Productivity, Attrition and Employee Engagement scores and meeting various employees, it is concluded that there is a relationship between Employee Engagement and Business Performance Outcomes, however this cannot be generalized across the organization or a direct correlation between Employee Engagement Index with Business Performance Outcomes might not exist for a host of reasons such as those mentioned in the limitations. Business Performance outcomes are also dependent on business fundamentals. whereas, Employee Engagement independently can have significant impact on how employee affects overall business fundamentals. Overall, this research presents a holistic picture and detailed understanding of the world's best tools used in Pakistan with global benchmarks as well as internal benchmarks for comparisons. This study also covers action planning to help managers work on their pain points highlighted as outcomes of the survey, and some recommendations to ensure employee engagement levels are maintained or improved.

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