Track: Operations Management

Abstract

Disengaged employees typically cost corporations an estimated $350 billion annually. The negative effects on productivity could be caused by negative interpersonal behaviours that lower employee engagement. It was found that only thirteen percent (13%) of worldwide employees are fully engaged at work. In addition, twice as many are so disengaged that this negative behaviour is spread to other employees. Alternatively, leaders who incorporate strategic employee engagement behaviours experience higher employee productivity, further reinforcing the notion that organisational productivity is largely determined by employees’ efforts and levels of engagement. Cost of disengaged employees in the South African content has not been determined. It can be safely stated that with productivity levels being amongst the worst in developing economies, disengaged employees are costing the economy a substantial amount of money, which translates to over-priced products, which in-turn leads to un-competitiveness. In this challenging operational environment in South African organisations, getting employees to willingly move in a unified direction is not an easy task. Moreover, getting them to remain engaged to the task at hand, is even more challenging. This study uses a case study methodology to evaluate employee engagement in a fast-moving consumer goods environment.  The results shows a high correlation of employee engagement with successful, sustainable and productive organizations. This in-turn forms the foundation for organizations to leverage human capital into a truly competitive advantage. Disengaged employees negatively affects productivity and overall organizational performance.  Therefore, employers can undertake to create an environment that invariably fosters and stimulates employee engagement.