Employee Engagement is predicted once employees are dedicated to organization goals, finding their job exciting in addition to identifying the values of their organization (Armstrong and Taylor, 2014). The relationship between employee engagement and client satisfaction has been well established, and it’s been shown that the link between the two is strong when employee satisfaction is particularly high. This connection is very important in the insurance industry, where customers rely heavily on an insurer’s employees to help them through emotionally charged experiences (Glanz, 2018).
Insurance
industry employees face great challenges in maintaining high performance. One
of these challenges is their ability to provide excellent performance, under
high demanding customer service while maintaining positive behavior with
customers (Dusek et al., 2014). The insurance industry is significantly
affected by its employee turnover. This may cause a significant loss of profit
and productivity of the business (Amah and Ahiauzu, 2013).
To
meet and adapt to the challenges, the insurance sector needs to develop a
talented workforce. But in the fast-growing industry, the workplace itself is
also undergoing a rapid transformation. Digital technology is creating new ways
of operating, whereas a new digital-savvy generation of a period employee has
brought in a different attitude, valuing personal fulfillment and purposeful
work above a ‘success at all cost's culture. There is an expectation, among
employees for the importance of a work-life balance incorporating flexible,
remote and family-first arrangements (Heyhoe, 2018).
According
to Heyhoe (2018) seven ways insurance companies can attract and develop diverse
talents.
1. The Insurance Industry’s Image
2. Evolve for the Future of Work
3. Embrace Diversity and Inclusion
4. Support Continuous Growth
5. Invest in Knowledge-Sharing
6. Develop Future Industry Leaders
7. Transform Digitally
Figure 1 describes the relationship between factors and employee engagement. The
assumed independent variables were identified as factors of engagement like
involvement and participation, rewards and recognition, communication and
work-life balance. The assumed dependent variable was identified as employee
engagement. A positive or negative relationship was assumed between each
independent variable and the dependent variable (Thavakumar and Evangeline,
2016).
Figure 1.0: Influencing factors on Employee Engagement in Insurance Companies
(Source: Thavakumar and Evangeline, 2016)
The organization which I work for is a leading Insurance company in Sri Lanka. The organization formulates the annual action plan in anticipation of the changing dynamics of recruitment and retention. The company partner the staff to achieve sustainable success by equipping employee with the resources that combine personal and professional development with business know-how. This equips them with the tools that ensure high performance and the ability to respond to fast-changing environments. Investing in employees has increased productivity, forged loyalty and improved quality, the benefits of which have accrued to the Company. The company believes and works on the premise that a strong leadership builds engaged employees and improves employee satisfaction, which leads to enhances employee performance and has a positive impact on the overall profitability of the Company.
List of Reference
Amah,
E. and Ahiauzu, A. (2013) Employee involvement and organizational
effectiveness. Journal of Management Development, 32(7), pp. 661-674.
Armstrong,
M. and Taylor, S. (2014) Armstrong’s handbook of Human Resource Management
Practice. 13th edition. Phyladelphia: Kogan page publishers.
Dusek,
G. A., Ruppel, C. P., Yurova, Y. and Clarke, R. (2014) The role of employee
service orientation in turnover in the US hotel industry. Journal of
Organizational Culture, Communications and Conflict, 18(2), pp. 87-100.
Glanz, A. (2018) Engaging Employee is Key to
Success in the Insurance Sector. [blog entry] 24 July. Medallia. Available
from https://www.medallia.com/blog/engaging-employees-is-key-to-success-in-the-insurance-sector/ [Accessed on 22 April 2021].
Heyhoe, S. (2018) “No One Wants to Work in the
Insurance Industry!” Seven Ways Insurance Companies Can Attract and Develop
Diverse Talent. [blog entry]. 31 May. Questback. Available
from https://www.questback.com/blog/seven-ways-insurance-companies-can-attract-and-develop-diverse-talent/
[Accessed on 23 April 2021].
Thavakumar, D. and
Evangeline, S.J. (2016) The influence of Involvement and participation,
compensation, communication and work-life balance on Employee Engagement: A
Case of Insurance Companies in Batticaloa District. International Journal of Multidisciplinary Studies,
3(1), pp.71-80.
Agree with you nivethini but according to a 2014 Deloitte research survey, more than 60 percent of organizations don’t even know exactly how much they are spending on learning, and fewer than a quarter of these same companies rate themselves as “good” or better at demonstrating value or return on investment (ROI) on their learning investment. Insurance companies can look for efficiencies by addressing common redundancies in technology, curriculum, and vendor relationships.
ReplyDeleteAbsolutely Pernalla, The quality of output and competitive advantage of a company depends upon the quality of its employees. This impacts the attitude towards the company’s clients and thereby improves customer satisfaction and service levels. Most Insurance organizations realize today that a satisfied employee isn’t necessarily the best employee in terms of loyalty and productivity. It is only an engaged employee who is intellectually and emotionally bound with the organization (Anbuoli and Devibala, 2009).
DeleteThere should be a systematic approach to bridge the organizational performance and the employee engagements, and the top management needs to be educated and trained to strike a balance between them. Initially, the employer should provide the required resources and information to the employees to raise awareness regarding employee engagement within the organization. The employer should focus on creating and implementing the competitive advantage through employee engagement as it facilitates long-term stability in the market. (Gruman and Saks, 2011)
ReplyDeleteExactly Harsha, Employee engagement does not only affect employee's performance but also the overall performance of the organization (Shuck and Wollard, 2010). To manage performance, organizations should set clear goals for employees and functions and set plans to achieve these goals (Good and Carin, 2004).
DeleteAgree, Employee engagement is critical to remaining competitive in a customer service-driven industry. Many studies show that highly engaged companies can hire more easily, deliver
ReplyDeletestronger customer service, have the lowest voluntary turnover rates, and be more profitable over time. In the face of increased regulations, mergers, and other market influences, insurance industry leaders must adapt quickly and build a strong and enduring culture to attract, engage, and retain the new millennial workforce (Liakopoulos & Baumann,2016).
Exactly Indeevari, Employee engagement in the insurance sector is more critical than in other industries. A consequence of good levels of employee engagement is improved customer satisfaction, positive results and organizational performance (Mone and London, 2014).
DeleteAgree with your view Nivethani,employee engagement consider as predictor of organization's ability to cope effectively with difficult situation, it's help to building an emotional relationship between employer & employee, engaged employees are more efficient & positively drive to achieve organizational goals, enjoy work & find it easier to adjust new conditions are inherent characteristics of highly engaged employees(Baran & Sypniewska,2020).
ReplyDeleteYes Sandun, Employee engagement is essential in driving organizational success as engaged employees are motivated and strive to achieve organizational goals and objectives (Pillay and Singh, 2018).
DeleteI agreed with your argument employee engagement reflects customer satisfaction. It is said that happy employees mean happy customers. Therefore, it is important for service sector organizations to focus on employees to ensure the best service quality, which in turn will significantly contribute to the highest customer satisfaction. Thus, we believe that service quality can work as a bridge among employees and customers by playing the role of mediator. (Mehta & Mehta, 2013)
ReplyDeleteAgreed, Employee engagement investigates organizational culture and work-life balance policies. The practices that are followed in insurance industries are to promote employee engagement in the organizations to increase the employee's productivity and retain them (Susi and Jawaharrani, 2011).
DeleteI agree with your view, Moreover Employee engagement is a good tool to help every organization to strive to gain competitive advantage over the others. People is one factor that cannot be duplicated or imitated by the competitors and is considered the most valuable asset if managed and engaged properly. This point has been emphasized by Baumruk (2004).
ReplyDeleteAgree with your comment, Bakker (2011) said employee engagement is a positive, highly awakened emotional state with two features: energy, and involvement. Further employee engagement has three requirements: a job-role commitment, activation and positive affect (Soane et al., 2012).
DeleteAgreed with you Nivethini And adding, Kahn, (1990, 694) Describes employee engagement as when the employees are given an opportunity to express their views physically, emotionally and through actions. The emotional part of the employees could be classified as either negative or positive views about the organization. Moreover, according to Kahn, engagement is when an employee is physically and emotionally present while doing their daily work.
ReplyDeleteThank you for your comment, Hewitt Organization (2001) referred to employee engagement as the extent employees are willing to stay in the company and work hard for the company, reflected in three aspects: Say, Stay and Strive.
DeleteYes Nivethini. The climate in the insurance industry has similarly reflected global changes (Coetzer & Rothmann, 2007). Since the 19th century, the insurance industry has seen immense growth and expansion, characterized by competitiveness and rivalry (Coetzer & Rothmann, 2007). These changes, along with world-wide economic conditions and demands, have forced organizations more ready to cope with more predicable tasks of preparing for and participating in the work role and with the unpredictable adjustments prompted by changes in work and working roles (Savickas & Porfeli, 2012).
ReplyDeleteThank you for your comment. Adding to that, Employee engagement is a critical factor in a customer service-driven industry. Insurance claims processing and other customer-focused processes can directly impact employee engagement. Empowering employees, and building a corporate culture will lead to higher level employee engagement (Deloitte, 2016).
Delete