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Show me the money PurposeThe purpose of this paper is to reconcile various theoretical directions in employee engagement with self-determination theory (SDT) as a unifying framework and introduce an inter-disciplinary employee engagement economics model based on SDT.Design/methodology/approachTwo studies were conducted applying a T1/T2 intervention study design. Study 1 examined the causal relationship between an organizational intervention and employee engagement with n=367 employees from a European pharmaceuticals company using both survey and actual performance data. Study 1 results were used as input data for study 2 which tested the employee engagement economics model by calculating the pre-/post-economic value added and return on investment (ROI) for the intervention.FindingsStudy 1 results showed a significant positive impact of the SDT-based intervention on both self-reported and actual employee engagement. Study 2 converted study findings into pre-/post-economic considerations putting an economic dollar value on achieved employee engagement gains and calculating an ROI in relation to the cost incurred.Practical implicationsThe present results support SDT as a unifying theory for employee engagement and the proposed employee engagement economics model as strategic decision-making tool for planning and evaluating the economics of employee engagement interventions.Social implicationsThis research supports a shift in corporate focus from “people as cost” to “people as values” proposing a systematic, value-based, strategic management approach to employee engagement based on cost-benefit analysis.Originality/valueThis is the first research to contribute an empirical economic model for employee engagement interventions to literature. It is based on the first reconciliation of engagement literature identifying SDT as a unifying framework. Finally, for the first time, this work identifies subjective vitality as a measure for engagement and contributes a definition for disengagement to literature. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Organization Theory & Behavior Emerald Publishing

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1093-4537
DOI
10.1108/IJOTB-05-2018-0056
Publisher site
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Abstract

PurposeThe purpose of this paper is to reconcile various theoretical directions in employee engagement with self-determination theory (SDT) as a unifying framework and introduce an inter-disciplinary employee engagement economics model based on SDT.Design/methodology/approachTwo studies were conducted applying a T1/T2 intervention study design. Study 1 examined the causal relationship between an organizational intervention and employee engagement with n=367 employees from a European pharmaceuticals company using both survey and actual performance data. Study 1 results were used as input data for study 2 which tested the employee engagement economics model by calculating the pre-/post-economic value added and return on investment (ROI) for the intervention.FindingsStudy 1 results showed a significant positive impact of the SDT-based intervention on both self-reported and actual employee engagement. Study 2 converted study findings into pre-/post-economic considerations putting an economic dollar value on achieved employee engagement gains and calculating an ROI in relation to the cost incurred.Practical implicationsThe present results support SDT as a unifying theory for employee engagement and the proposed employee engagement economics model as strategic decision-making tool for planning and evaluating the economics of employee engagement interventions.Social implicationsThis research supports a shift in corporate focus from “people as cost” to “people as values” proposing a systematic, value-based, strategic management approach to employee engagement based on cost-benefit analysis.Originality/valueThis is the first research to contribute an empirical economic model for employee engagement interventions to literature. It is based on the first reconciliation of engagement literature identifying SDT as a unifying framework. Finally, for the first time, this work identifies subjective vitality as a measure for engagement and contributes a definition for disengagement to literature.

Journal

International Journal of Organization Theory & Behavior – Emerald Publishing

Published: Mar 11, 2019

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