EMPLOYEE ENGAGEMENT STUDY IN IT SECTOR

ABSTRACT

Employee engagement is crucial for the success of any organization, and the IT industry is no
exception. In the IT industry, employee engagement refers to the level of commitment and
involvement that employees have towards their work and the organization they work for. Engaged
employees are more likely to be motivated, innovative, and productive, which leads to better
organizational outcomes.

In this study, the objective is to find factors of engagement and relate employee engagement to the
level of satisfaction. We conducted an employee engagement survey consisting of a structured
questionnaire to collect data.

Descriptive research design was adopted for the study. Convenience sampling technique has been
deployed.The findings of the study shows the factors under employee engagement . Some of the
main findings include identifying the satisfaction level of employees which leads to employee
retention. Further to this, recommendations have also been given by the researcher based on the
main findings including how to motivate and retain employees etc. The researcher We hope that
the recommendations would help the IT firms to make their employees fully engaged and
committed to their firm.

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 INTRODUCTION

The IT industry is highly competitive and rapidly changing, which makes it essential for companies
to have engaged employees who are motivated, productive, and committed to the success of the
organization. Engaged employees are more productive, which leads to increased output and
improved organizational performance. When employees are engaged, they are more likely to go
the extra mile to complete their tasks and achieve their goals.

The IT industry is driven by innovation, and engaged employees are more likely to come up with
innovative ideas that can help the organization stay ahead of the competition. Engaged employees
are more likely to provide excellent customer service, which leads to higher levels of customer
satisfaction. Satisfied customers are more likely to become repeat customers and recommend the
company to others. Companies in the IT industry should focus on creating a positive work
environment, providing career development opportunities, recognizing and providing feedback to
employees, promoting work-life balance, and empowering their employees to improve employee
engagement and achieve organizational success.

Employee engagement is a concept that is defined in different ways by different researchers.

According to Kahn (1990), employee engagement is "the harnessing of organizational members'
selves to their work roles; in engagement, people employ and express themselves physically,
cognitively, and emotionally during role performances." Other definitions of employee
engagement focus on the employee's commitment to the organization, motivation, and enthusiasm
for their work.

Studies have shown that high levels of employee engagement are associated with numerous
benefits for organizations, including increased productivity, profitability, customer satisfaction,
and employee retention. Organizations can implement several strategies to improve employee
engagement, such as providing opportunities for employee development, promoting a positive
work culture, fostering communication and collaboration, recognizing and rewarding employee
contributions, and ensuring work-life balance.

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 LITERATURE REVIEW

One study published in the International Journal of Information Management in 2018 examined
the relationship between employee engagement and work outcomes in the IT industry in India.
The study found that employee engagement was positively related to job satisfaction,
organizational commitment, and intention to stay with the organization. The study also found that
engaged employees were more likely to display positive behaviors such as going beyond the call
of duty and showing extra-role behaviors.

Another study published in the Journal of Organizational Change Management in 2019 focused
on the factors that influence employee engagement in the IT industry in Malaysia. The study
identified several factors that influenced employee engagement, including organizational culture,
job satisfaction, employee empowerment, and leadership style. The study concluded that
organizations in the IT industry should focus on these factors to improve employee engagement
and ultimately, organizational outcomes.

A study published in the Journal of Business and Psychology in 2017 examined the relationship
between employee engagement and performance in the IT industry in China. The study found that
employee engagement was positively related to job performance, and that the relationship was
mediated by job satisfaction and organizational commitment.

Employee engagement has been explained by a number of theoretical frameworks. The Work
Demands-Resources (JD-R) model, which contends that employee engagement is a result of the
balance between job demands (such as workload, time constraints) and job resources (such as
autonomy, social support), is one of the most important models. The Self-Determination Theory
(SDT), which highlights the value of meeting employees' fundamental psychological needs (such
as autonomy, competence, and relatedness) to promote engagement, is another significant theory.

An article published in 2019 titled ‘Employee engagement towards retention - Insight from
the real world’ gives a bird's-eye view of the motivational tactics used by many businesses. While
unmotivated personnel will bring the entire organization down with them, a passionate team will
be better suited to succeed. According to a 2005 Gallup organization study, 24% of Japanese

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workers are "actively disengaged" at work, which is defined as vocalizing and acting out their job.
This decreased motivation is predicted to cost Japan $232 billion in lost production annually. In
the US, 14% of people are actively disengaged, while in Singapore, 12% of people cost $6 billion.

According to a recent study, losing one's finest employees can cost a business up to 40%
of its profits. A person is in a fantastic place to work if he or she takes pride in the work they
perform, respects the people they work for, and enjoys their company. Trust, pride, and personal
safety are therefore the cornerstones. Even while technology currently reigns supreme, the
management of human resources is getting more consideration when determining how to acquire
a competitive advantage. However, there are still lots of challenging issues. The theoretical
underpinnings of employee engagement are first looked at in this work. The role that various
managers' psychological states of self-efficacy play in the relationship between their staff
members' measured engagement and a variety of measures (self, subordinates, and peers) of the
managers' effectiveness is then empirically investigated.

In addition to profit, new product development, customer and employee satisfaction,

employee engagement is also used to gauge an organization's productivity. When there is a high
level of commitment and a positive attitude towards the task, employees are said to be engaged.
This article focuses on the difficulties HR managers have in raising employee engagement levels
for an organization's sustainability. It also sheds light on further facets of employee engagement,
such as its advantages, essential metrics, and variables that influence it.

HR professionals have long understood the value of an engaged staff to their companies.
The human factor examines the employee engagement landscape and the elements that lead to
effective employee engagement initiatives with the help of practicing managers and business
executives. According to Dr. Wilfried Aulbur, MD and CEO, Mercedes-BENZ India Pvt. Ltd ,
Employee engagement is about having a good time at work, having plenty of time to work, and
enjoying what you do while also feeling that you are making a difference and having an impact.
CEO & Founder, Dr. Batra’s Positive Health Clinic Pvt. Ltd., Dr. Mukesh Batra says their pay
packages are fixed at a rate greater than the industry average to keep the medical team motivated
to perform, and for those working outside the city, there is always the incentive of a good lodging.

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 Ajai Chowdhry, Founder, HCL, and Chairman & CEO, HCL Infosystem Ltd believes that
the most important factor in an organization's operation is its ability to engage its workforce, and
that they take several steps to make that possible. They research employee opinions on
engagement, evaluate each input that they receive in light of that feedback, and then take
appropriate action.

Kular et al. (2008) looked into five important areas: How can employee engagement be
managed? What does "employee engagement" mean? What effects does engagement have on
organizations? What kind of engagement connects to different personal qualities? How do
employee voice and representation affect engagement? The definition of engagement provided by
Robertson-Smith and Markwick (2009) demonstrates that it is a significant yet complex topic, and
that there is still much room for discussion of the many approaches. In a survey of the literature,
Simpson (2009) discussed the present level of knowledge regarding engagement at work. This
review focused on the causes and effects of engagement at work and highlighted the four study
areas in engagement. Susi and Jawarrani (2011) looked at some of the literature on employee
engagement and investigated work-place culture and work-life balance policies and practices used
in various industries to encourage employee engagement in their firms and boost productivity and
employee retention. The major factor influencing employees' satisfaction is work-life balance.
Ram and Gantasala (2011) looked at the causes and effects of employee engagement in the
Jordanian industrial sector. The focus of Bhatla (2011) was on the requirement for such workers
and how their presence might enhance the development and productivity of the business as a
whole.

The focus of BijayaKumarSundaray's (2011) study was on the different aspects that
influence employee engagement and what employers can do to increase it. The efficacy of the
business will be improved by giving engagement methods the proper attention, which will result
in higher production, profits, quality, customer happiness, staff retention, and increased
adaptability. Siddhanta and Roy (2012) examined the theoretical, research, and practical
ramifications of contemporary corporate "Employee Engagement" efforts through the analysis of
results from earlier studies and surveys. Singh & Shukla (2012) sought to identify the factors that
are crucial for fostering employee engagement. The data was obtained from a tin manufacturing
company and the study was exploratory in nature.

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 Employee engagement, according to Hewitt, is the zeal, passion, and "fire in the belly" that
employees have for their coworkers, which motivates them to stay (want to be a part of the
organisation), say (talk favourably about the organisation), and strive (go beyond what is
minimally required). Kahn's work on employee engagement, which offers a convergent
explanation for Gallup's empirically obtained employee engagement, was expanded upon by
Luthans and Peterson in 2002. They asserted that developing deep relationships with others and
feeling empathy for them are essential components of emotional engagement.Contrarily, those
who are fully conscious of their purpose and place in their workplace are said to be cognitively
engaged. Active participation was defined by Dvir, Eden, Avolio, and Shamir (2002) as having
high levels of activity, initiative, and responsibility. Engagement, according to Towers Perrin
(2003), comprises both emotional and cognitive considerations pertaining to one's job and entire
work experience.

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 RESEARCH GAP

Very few studies are found in Employee Engagement and also less focus to determine the factors
that most significantly influence Engagement and level of Employee Engagement in I.T.

According to the survey of NASSCOM, Information Technology in India has extensive growth,
which results enormous inflows of foreign investment ultimately contributes to the growth of GDP,
export promotion and employment generation for millions of professionals worldwide.

The latest report from NASSCOM confirms that the biggest challenge of companies is not just
satisfied employees, but to engage the employees permanently for the organizational success and
individual growth. Of myriad HR-related challenges faced by the industry, the critical one is
attrition. A recent report from NASSCOM reconfirms the fact that the biggest challenge of all is
to manage the ambitious and transient workforce. As the industry is predominantly service-
oriented, the importance of attracting and retaining talent has become crucial. Hence the study on
Employee Engagement with respect to the employee’s opinion is to be conducted to identify the
ways/interventions and means to enhance Employee Engagement in the organizations.

One potential research gap in employee engagement is the exploration of the effectiveness of
different types of employee engagement programs and initiatives. While many organizations
invest in employee engagement activities, such as team-building events, recognition programs, and
employee development opportunities, there is little research on the specific impact of these
initiatives on employee engagement levels.

Additionally, there may be a need for further research on the relationship between employee
engagement and other organizational outcomes, such as productivity, job satisfaction, and
employee retention. Understanding how employee engagement relates to these outcomes could
help organizations design more effective engagement programs and better measure the return on
investment of these initiatives.

Finally, there is a potential research gap in the exploration of how different factors, such as
organizational culture, leadership style, and employee demographics, may influence employee

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engagement levels. By understanding these factors, organizations may be able to design more
targeted engagement programs that meet the specific needs and preferences of their employees.

Here we are trying to identify the factors that affect employee engagement.

RESEARCH QUESTIONS

Based on the above stated research gap, the following research questions have been developed to
fill the research gap.

● What is the current level of Employee Engagement of employees with less than 5 years of
experience in I.T. Industry?
● What are factors that influence Employee Engagement?
● What are the ways and means, the organizations need to enhance Employee Engagement?

OBJECTIVES

● To identify factors that influence employee engagement in IT industry

● To identify the current level of employee engagement of employees with less than 5 years
of experience in I.T. Industry

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 RESEARCH METHODOLOGY

● Research Design

Descriptive research design is used as it will ensure the minimization of biased results and
maximization of reliability of data collected

● Population of the Study :

The Population for the proposed research includes all the IT company employees with less
than 5 years experience.

● Sampling Design

Convenience Sampling Technique is used as a sample of 33 people were taken based upon
convenience

● Research Instrument

This work is carried out through self-administered questionnaires. The questions included
were of five-point likert scale.

● Research Period

Research work is only carried for 8 weeks

● Data Collection

The primary data was collected directly from respondents with the help of a structured
questionnaire. The secondary data is collected from different Business Periodicals,
Business journals, magazines, publications, reports, books, dailies, Research articles,
websites, manuals, and booklets.

● Questionnaire

The aim of this study is to find the employee engagement among workers with less than 5
years of experience and its factors in the IT industry . Here the 5 major parameters have
been taken with four questions each and a total twenty questions are designed for the
questionnaire survey.

The parameters are :

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 1. Employee engagement index
2. Workplace Wellness
3. Work environment
4. Management and leadership
5. Communication

Likert's five point scale has been implemented in this study on the points of agree, disagree,
strongly agree, strongly disagree.

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 ANALYSIS AND INTERPRETATION

Chi-square is an analytical tool that looks at how categorized variables from a sample taken at
random differ from one another to see if the predicted and actual findings match together well. In
this analysis, we use chi-square in order to find the significance of different factors and their
contribution to employee engagement.

Chi-square formula:

O = Observed frequency

E = Expected frequency

Expected frequency of any cell = [(Row total of any cell) X (Column total of any cell)]/ Total of
all cells

(i) Employee Engagement Index and Communication

● Let H0 denote there is no significant relationship between Employee engagement and

Communication.
● Let H1 denote there is a significant relationship between Employee engagement and
Communication.

Observed Values:

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Expected Values:

Chi-square p value 0.500534443

Significance Level 0.05

Degree of freedom (r-1)x(c-1)=16

Table value 0.263

The calculated chi-square value is greater than the corresponding table value (0.50053>0.2630).
Hence H0 is rejected and there is a significant relationship between Employee engagement and
Communication.

(ii) Employee Engagement Index and Work Environment

● Let H0 denote there is no significant relationship between Employee engagement and

Work Environment.
● Let H1 denote there is a significant relationship between Employee engagement and Work
Environment.

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Observed Values:

Expected Values:

Chi-square p value 0.249752074

Significance Level 0.05

Degree of freedom (r-1)x(c-1)=16

Table value 0.263

The calculated chi-square value is lesser than the corresponding table value (0.24975<0.2630).
Hence H0 is rejected and there is no significant relationship between Employee engagement and
Work Environment.

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(iii) Employee Engagement Index and Management and Leadership

● Let H0 denote there is no significant relationship between Employee engagement and

Management and Leadership.
● Let H1 denote there is a significant relationship between Employee engagement and
Management and Leadership.

Observed Values:

Expected Values:

Chi-square p value 0.53808699

Significance Level 0.05

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 Degree of freedom (r-1)x(c-1)=16

Table value 0.1968

The calculated chi-square value is greater than the corresponding table value (0.53808<0.1968).
Hence H0 is rejected and there is no significant relationship between Employee engagement and
Management and Leadership.

(iv) Employee Engagement Index and Workplace Wellness:

● Let H0 denote there is no significant relationship between Employee engagement and

Workplace Wellness.
● Let H1 denote there is a significant relationship between Employee engagement and
Workplace Wellness.

Observed Values:

Expected Values:

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 Chi-square p value 0.188307736

Significance Level 0.05

Degree of freedom (r-1)x(c-1)=16

Table value 0.263

The calculated chi-square value is less than the corresponding table value (0.188307<0.2630).
Hence H0 is rejected, and there is no significant relationship between employee engagement and
Workplace wellness.

Current level of employee engagement in IT sector employees with less than 5 years of
experience.

Interpretation

Employee engagement seems to be affected significantly by communication and the management

and leadership of the particular organization. Work environment and Workplace wellness has
comparatively less significance towards how engaged the employees are towards their concerned
work.

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 MANAGERIAL IMPLICATIONS

According to the findings of this study, effective leadership, management, and communication are
critical in determining the level of employee engagement in the IT sector, especially for workers
with less than five years of experience. Therefore, firms must concentrate on creating efficient
channels of communication and giving their staff the proper leadership and management training,
especially for those who are new to the sector.

Additionally, while the work environment and workplace wellness are crucial for employee
engagement, they have a relatively less impact than management, leadership, and communication.
In order to foster a positive workplace culture, firms can seek to enhance their working
environment and provide wellness programs to their staff.

CONCLUSION

The study comes to the conclusion that employee engagement is essential for any firm to succeed,
particularly in the IT sector where there is fierce rivalry for qualified workers. According to the
survey, employee engagement for IT workers with less than five years of experience is most
significantly influenced by communication, management, and leadership.

According to the report, businesses should concentrate on developing a supportive workplace

environment that places a high value on leadership development and good communication. They
can also provide wellness initiatives to their staff to encourage a happier and healthier workplace.

The importance of employee engagement in the IT sector is emphasized throughout this research,
which also offers helpful advice for companies looking to increase employee engagement and keep
their important personnel.

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