Human Resource Management Research 2018, 8(1): 7-13

DOI: 10.5923/j.hrmr.20180801.02

Empirical Approach to Measure Employee Engagement:

Evidence from Indian IT Industry
Jitendra Mohan1,*, Mohammad Israrul Haque1, Nadeem Khan2

1
Department of Business Administration, Aligarh Muslim University, Aligarh, India
2
Department of Human Resource, Indian IT Multinational, Noida, India

Abstract Employee Engagement has become a very popular managerial construct in the last two decades. Organizations
use different engagement building tools and methodologies in order to stay competitive and improve their performance.
Though there is an increasing contribution in human resource consulting agencies on the concept of employee engagement,
yet there is a shortage of academic studies on that construct, especially in emerging economies. An engaged employee is
aware of the business context and works with their team members to improve performance for the growth of the organization.
Organizations are also able to benefit free discretionary effort the employee is willing to make .Employee engagement is,
therefore, a level of involvement and commitment of employee towards their organizations’ vison and value. This
engagement gap became more prominent during the ongoing recession and resource scarcity conditions prevailing in the
Indian IT industry. This is an exploratory study aimed at identifying the key drivers of employee engagement within the
Indian IT industry. This study focuses on how employee engagement is the antecedent of job commitment and what an
organization can do to engage its employees.
Keywords Employee Engagement, Employee Commitment, Employee Engagement Drivers, Empirical Study, Indian
IT industry

positively towards achieving the organizational goals.

1. Introduction Although engagement is a relatively new concept,
research suggests that it may influence several work-related
“Employees are considered an important resource in any attitudes. According to Kahn (1990), employee engagement
organization more so in the service industry. Globally, there is the harnessing of organizational members’ selves to their
has been an increase in the struggle to find the right talent, work roles. Engagement is a type of positive and fulfilling
and each organization has to ensure that apart from attracting work-related state of mind characterized by vigor, dedication,
the best talent, they should be able to retain it. Retaining and absorption (Schaufeli & Bakker, 2004). Engaged
employees in an organization is also not enough as a person employees are more likely to express these characteristics
may have the best talent but may not be passionate about emotionally, cognitively, and physically (Kahn, 1990) in
his/her work. Kahn (1990), who is considered as the father of such a way that they drive personal energies into role
employee engagement movement, stated that an employee behaviors and display themselves within the role (May et al.,
has to be present both physically and psychologically when 2004), therefore being highly proactive (Sonnetag, 2003) and
performing organizational roles. productive (Catteeuw, Flynn & Vonderhorst, 2007). Since
Pandita and Bedarkar (2014) note that one of the toughest engagement entails physical and emotional behavior, it can
challenges facing Chief Executive Officers (CEOs), Human lead to the formation of work attitudes.
Resource (HR) and business leaders of many organizations is Meere (2005) describes three levels of engagement: a)
to ensure that when their employees report to work every day, Engaged: -Employees who work with passion and feel a
they not only do it physically but mentally and emotionally. profound connection with their organization. They drive
This means that organizations must ensure that their innovation and move the organization forward. b) Not
employees are engaged so that they are able to contribute engaged: Employees who attend and participate at work but
are time serving and put no passion or energy into their work,
* Corresponding author: and c) Disengaged: –Employees who are unhappy at work
[email protected] (Jitendra Mohan)
and who act out their unhappiness at work. According to
Published online at http://journal.sapub.org/hrmr
Copyright © 2018 The Author(s). Published by Scientific & Academic Publishing Meere (2005), these employees undermine the work of their
This work is licensed under the Creative Commons Attribution International engaged colleagues every time. It is therefore important for
License (CC BY). http://creativecommons.org/licenses/by/4.0/ an organization to assess the levels of engagement of its
8 Jitendra Mohan et al.: Empirical Approach to Measure Employee Engagement: Evidence from Indian IT Industry

employees so that they can take necessary measures to boost be built through reliability of the leadership. Trust in leader,
the morale and productivity of their employees. support from the leader, and creating a blame-free
Employee engagement is a common topic in the human environment are considered as components of psychological
resources consultancy market. However, there are only a few safety, a condition proposed by Kahn, which leads to
academic studies about it (Robinson & Perriman, 2004). employee engagement (Xu and Thomas Cooper, 2010).
Engagement is not only desirable but has become mandatory A study by Papalexandris and Galanki (as cited in Pandita
for organizations in the current business environment. and Bedarkar, 2014) identified two factors that are positively
Organizations with an engaged workforce have higher levels linked with engagement namely, management and mentoring
of customer satisfaction; also they are more productive and behaviors, such as imparting confidence to followers, power
have higher profits than companies with less engaged sharing, communication, providing role clarification, and
personnel (Harter et al., 2002). The relationship between articulation of vision which could be characterized as
job satisfaction and organizational commitment and some inspirational, visionary, decisive, and team-oriented. Men
influential factors of engagement have been extensively (2015) notes that although studies have revealed significant
examined. However, the effects of engagement on effects of authentic leadership on employee engagement,
commitment need further scrutiny. these effects are usually mediated by factors such as
employee-organization relationships, internal reputation,
and transparent communication.
2. Definition of Employee Engagement Social support refers to support that employees get from
colleagues and supervisors. Social support from colleagues
There is lack of a universal definition of employee and supervisors has been found to have a positive association
engagement. Kahn (1990) defines employee engagement as with engagement (Ologbo and Saudah, 2007, Schaufeli and
“the harnessing of organization members’ selves to their Salonova, 2007). It has also been found that supportive
work roles; in engagement, people employ and express colleagues and proper feedback from supervisors increases
themselves physically, cognitively, and emotionally during the likelihood of an employee being successful in achieving
role performances”. The cognitive aspect of employee work goals (Bakker and Demerouti, as cited in Sakovska,
engagement relates to employees’ beliefs about the 2012). Schaufeli and Bakker (2004) assert that social support
organization, its leaders, and working conditions. The satisfies employees’ need to belong.
emotional aspect is described as how employees feel about Study by Kahn (1990) suggested that supportive and
each of those three factors and whether they have positive or trusting interpersonal relationships as well as supportive
negative attitudes towards the organization and its leaders. management promoted psychological safety. It revealed that
The physical aspect of employee engagement concerns the employees feel safe in work environments that are
physical energies exerted by individuals to accomplish their characterized by openness and supportiveness. Supportive
roles. Therefore, according to Kahn (1990), engagement environment according to Kahn (1990) allows members to
means to be psychologically as well as physically present experiment and try new things and even fail without the fear
when occupying and performing an organizational role. of consequences. May et al. (2001) found that supportive
Most often employee engagement has been defined as supervisor relation was positively related to psychological
emotional and intellectual commitment towards the safety.
organization (Baumruk 2004, Richman 2006, and Shaw According to Ram and Prabhakar (2011), two variables
2005) or the amount of discretionary effort exhibited by that are likely to capture the essence of social support are
employees in their job (Frank et al., 2004). Although it is perceived organization support and perceived supervisor
acknowledged and accepted that employee engagement is a support. Perceived organizational support (POS) refers to
multi-faceted construct, as previously suggested by Kahn employees’ beliefs that an organization values their
(1990), Truss et al. (2006) define employee engagement contribution and cares about their well-being (Rhoades’ and
simply as ‘passion for work’, a psychological state that is Eisenberger, 2002). Kahn (1990) asserts that the amount of
seen to encompass the three dimensions of engagement support and care employees’ perceive to receive from an
discussed by Kahn (1990), and captures the common theme organization influences their psychological safety, and
running through all these definitions. enables them to employ their selves without the fear of
negative consequences.
3. Literature Review Perceived supervisor support refers to the way employees
feel about the help they get from their supervisors. Rhoades
Though there are many factors that influence employee and Eisenberger (2001) state that because employees tend to
engagement, this study paper reviews a few from previous view their supervisors’ orientation towards them as
researches. Factors discussed are leadership, social support, indicative of the organization support, the perceived
growth, communication, and job characteristics. supervisor support is likely to be an important predictor of
Ologbo and Saudah (2011) found that employees need to employee engagement (Ram and Prabhakar, 2011). Maslach
be confident with their organization and this confidence can et al. (2001) found out that a lack of supervisor support was
 Human Resource Management Research 2018, 8(1): 7-13 9

an important factor linked to burnout. Though studies have 4.1. Hypotheses of the Research
shown connection between social support and engagement, On the basis of literature review and research questions
study by Saks (2006), did not find a significant connection the following hypotheses tested.
between perceived supervisor support and employee
engagement. H1: Meeting the basic needs of the employees like role
Internal communication is an organization practice that clarity and necessary resource and infrastructure has
effectively conveys organizational values to all employees influence on employee engagement.
and therefore, obtains their support in achieving H2: Managerial support provided to employees has
organizational goals (Pandita and Bedarkar, 2014). Ologbo influence on employee engagement.
and Saudah (2011) note that employees need clarifications if H3: Teamwork among employees has influence of
they are to do their work well while Hakanen et al. (2006) employee engagement.
indicate that availability of information is positively related H4: Growth opportunities provided to employees has
to engagement, as access to information increases the influence of employee engagement.
chances that the task at hand will be completed successfully H5: Company Image and Brand Name has influence of
and that work goals will be achieved. However, a study by employee engagement.
Men (2015) reveals that contrary to expectation, transparent H6: Senior management actions has influence of
communication did not directly and significantly influence employee engagement.
engagement. Such effects were fully mediated by H7: Internal formal communication process has influence
employee–organization relationships and internal reputation. of employee engagement.
Men (2015) concludes that by nurturing quality H8: Work-Life balance policies has influence of
employee–organization relationships, transparent employee engagement.
communication indirectly drives employee engagement. H9: Compensation has influence of employee
Castellano (2015) notes that employees react positively to engagement.
five core dimensions: skill variety, task identity, task H10: Performance appraisal process has influence of
significance, autonomy, and feedback. He further states that employee engagement.
there is evidence from research that employees who work in H11: Training provided to employees for their
jobs that are high in these dimensions show high work development has influence of employee engagement.
motivation, satisfaction, and attendance. Job enrichment has
been found to positively relate to meaningfulness, and that
meaningfulness, mediated the relationship between job
5. Research Methodology
enrichment and engagement (May et al., 2004). The methodology this study consists of collecting primary
In conclusion, it is important to note that the factors that data. This data is collected from respondents through online
influence employee engagement vary from region to region, questionnaires. Primary data was collected from respondents.
sector to sector, and time to time. It is therefore important The research design used in this study is descriptive.
that organizations identify which factors precisely need to be
addressed in their specific organizations. Thorten (as cited in 5.1. Questionnaire Schedule
Cawe, 2006) notes that there are many factors influencing Questions were framed in a way that the answers reflect
engagement and they differ from one company to another. the ideas and thoughts of respondents with regard to various
Therefore, in order for employee engagement to be factors of employee satisfaction.
successful, it must be tailored to the objectives and culture of
 Work profile
each organization.”
 Relationship with immediate supervisor
 Provision of the tools and trainings an employee needs
4. Objectives of the Study to succeed
 Offer a competitive compensation/pay package
Specifically, this study was undertaken to the answer the  Management recognition of employee job performance
following research questions:  Supportive management style
 What is the extent of level of engagement of the  Offer career development opportunities
respondents regarding their job in the context of Indian  Honest communication
IT industry?  Organization culture
 What are factors impacting the employee engagement The content validly of the questionnaire was established
in the context of India IT industry. by sharing the subject matter expert in the HR domain. In this
 Based on the study, identify suggestions to the study, the questionnaire was shared with HR managers of the
management for improving their employees’ five IT companies and two HR professors working in India
engagement level. Universities in North India. The scaling technique used for
10 Jitendra Mohan et al.: Empirical Approach to Measure Employee Engagement: Evidence from Indian IT Industry

designing the questions in the interview schedule is the constructs or variable in studies (Malhotra, 2002).
Likert scale. Cronbach’s alpha is the most widely used method to measure
the reliability of the scale (Cooper & Schinder, 2001;
5.2. Data Collection and Sample Size Malhotra, 2002). Value of cronbach’s alpha ranges from 0 to
Data was collected by distributing questionnaires to 1, stisfactory value is required to be more than 0.60 for the
employees. The sampling frame was the pool from which scale to be reliable (Malhotra, 2002: Cronbach, 1951). Hence
interviewees were chosen. All the items in consideration in the data collected were tested by using Cronbach’s alpha to
any field of inquiry constituted a universe of population. In assess reliability. Internal consistency (reliability) values of
this research, only a few items can be selected from the the measurement items were assessed before entering in to
population for the purpose of study. The items selected analysis.
constitute what is technically called a sample. Here our Table 1. Variables in employee engagement measurement scale
sample size is 510 employees from a total population of
employees. Samples were selected on the basis of simple Variable Number of Items Cronbach's Alpha
random sampling technique. The sample was drawn from Basic Needs 2 0.929
onsite (United States of America) as well as offshore (India) Managerial Support 4 0.922
locations.
Teamwork 5 0.925
Growth 2 0.921
6. Result and Discussion Company Image &
2 0.921
Brand Name
The data collected through online questionnaire was coded
Senior Management 3 0.92
and summarized. Statistical techniques, such as drawing
percentages for generalizations, use of table for tabulating Communication 2 0.92
the primary, qualitative, and quantitative data and use of Work-Life Balance 1 0.925
graphs for better pictorial representation of the analysis were Compensation 2 0.924
used. Performance Appraisal 2 0.921
Primary information of both qualitative and quantitative
Training 2 0.924
nature was obtained by administering the questionnaire. The
questionnaire contained projective and direct queries and Commitment Index 3 0.919
was interpreted as per the set characteristics in the concepts.
The information obtained by observation was also In the present study, to measure the dependent variable
interpreted according to the set concepts. The intention (Employee Engagement) and independent variables (basic
behind every direct and indirect query was dealt in the needs, managerial support, teamwork, growth, company
concept of each table. image and brand name, senior management, communication,
work-life balance, compensation, performance appraisal and
6.1. Demographic Characteristics training), we have used 30 items . Among these 3 items were
developed for measuring independent variable and 27 items
The location covered were USA and India. 85 percent of
were developed for dependent variable.
the respondents were from India and 15 percent were from
From the reliability test, it was found that Cronbach’s
the United States. Out of the total sample size, 77 percent
alpha value for all variable range from 0.919 to 0.929, which
respondents were males and 23 percent were females.
means that all the variables have an internal consistency of
It was found that 61 percent of employees were satisfied
91% to 92% among each other. Overall Cronbach’s alpha
with the organization, 61 percent of employees intended to
value for the employee engagement scale was found to be
work for the next two years with the current organization,
0.929.
and 69 percent of employees not only believed that their
organization was a great place to work but they were willing 6.3. Regression Analysis
to recommend their organization to others. Overall, 64
percent of employees were found to be engaged with the 6.3.1. Model Summary
current organization. Since IT industry is primarily a service
The value of R Square (0.543) and R (0.737) shows a
industry and the organization studied was a people-based
moderate association between set of independent variable
organization, this kind of employee engagement is
with the standard error of 0.690 percent.
considered high and good for the organization.
Table 2. Model Summary
6.2. Reliability of Scales and Validity of Data
Adjusted R Std. Error of the
Reliability reflects the consistency of a set of items in Model R R Square
Square Estimate
measuring the study variable. It demonstrate the individual 1 .737a .543 .518 .690
concerning the amount of agreement or disagreement of the
 Human Resource Management Research 2018, 8(1): 7-13 11

6.3.2. ANOVA Test 6.3.4. Results of Hypothesis

The F value of the test for the data is 21.229. The p-value The result of the hypotheses show that the P value of all
associated with this F value is 0.000 which is lower than the the hypotheses are lower than significance level (α=0.05).
alpha value 0.05. It helped researchers to arrive at decisions on which
hypotheses are accepted. In the present study all the
Table 3. ANOVA table
hypotheses are accepted by following the decision rule as
Model
Sum of
df
Mean
F Sig.
explained earlier.
Squares Square It means that employee engagement is greatly influenced
Regression 273.054 27 10.113 21.229 .000b by the factors such as meeting the basic needs, enhancing
1 Residual 229.621 482 .476 teamwork, good company image, attitude of senior
management, effective internal communication, timely
Total 502.675 509
managerial support, creating work-life balance, transparent
The study demonstrated that there is significant impact of performance appraisal, relevant training and compensation at
these independent variables on the dependent variable and par with industry.
the model applied is significantly good enough in predicting
dependent variable.
7. Drivers Found during the Study
6.3.3. Test of Hypothesis
During the course of the study, following drives were
At α=0.05 level of significance the below hypothesis were found in the organization:
tested.  The ability of an organization to communicate its vision,
Decision Rule: mission, strategy, objective, and values to its employees
H1 will be rejected if P value is less than significance level on a regular basis so that these are clearly understood by
i.e. 0.05, otherwise H1 would be accepted at 5% level of employees.
significance.  Management to provide a conducive environment to its
Variable(s): employee to explore and innovate.
 The key role of immediate line manager is identified as
Dependent: Employee Engagement one of most important drivers in achieving effective
Indpendent: Basic needs, Managerial support, Teamwork, employee engagement.
Growth, Company Image & Brand Name, Senior  A sound grievance redressal system helps in improving
Management, Communication, Work-Life Balance, employee engagement.
Compensation, Performance Appraisal and Training.  Employees need to be provided role clarity in terms of
Table 4. Summarized Results of Hypotheses their key performance areas and how they are going to
be evaluated on them.
Dependent Independent P Sig.
Implications  A healthy team environment creates synergy and
Variable Variable Value Level
encourages employees to engage emotionally with the
Basic Needs 0..00 0.05 Satisfied organization.
Managerial
0..00 0.05 Satisfied
Support 7.1. Some of the Outcomes of the Engagement
Teamwork 0..00 0.05 Satisfied  Employees are able to get ‘involved’ in the organization
Growth 0..00 0.05 Satisfied and feel that they are genuinely participating and
Company Image contributing to its performance.
0..00 0.05 Satisfied  Employees have a sense of pride in their organization
& Brand Name
Senior and endorse it as a place to work and do business with.
Employee Management
0..00 0.05 Satisfied  Employees demonstrate real commitment towards their
Engagement Communication 0..00 0.05 Satisfied
job and organization and are prepared to ‘go the extra
mile’.
Work-Life
0..00 0.05 Satisfied  Employees are willing to stay with the organization in
Balance
future.
Compensation 0..00 0.05 Satisfied
Performance 7.2. A Few Suggestions to Improve Employee
0..00 0.05 Satisfied
Appraisal Engagement
Training 0..00 0.05 Satisfied  A transparent and efficient performance appraisal
Commitment system will help employees’ perception of partiality.
0..00 0.05 Satisfied
Index  Removal of bell curve-based appraisal system, which
will help in giving the performance its due wherever
12 Jitendra Mohan et al.: Empirical Approach to Measure Employee Engagement: Evidence from Indian IT Industry

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