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Blog | 07.13.2015

The Full Story Behind Employee Engagement in India

Employee Engagement is a top of the mind issue for senior executives, and especially HR, for some time now. Given today’s dynamic, competitive and complex business environment, organizations have realized that in order to stay relevant they need highly engaged employees.

A recent report by Dale Carnegie Training shows that Indian employees are more engaged than their global counterparts. The report states that the number of fully engaged working professionals in the Indian workforce stands at 46% while the global average for the same is 34% and that of the US is at 30%.

The survey conducted by Dale Carnegie Training in conjunction with NHRDN, surveyed more than 1200 executives, individual contributors, managers and chief officers across the country in 2014. The primary objective of the survey was not only to find out the engagement levels but also to identify what influenced it. The key factors were:

  • The relationship with the immediate Supervisor
  • Belief in Senior Leadership
  • Pride in the Organization

The report also identifies the level of higher education as a parameter that directly impacts employee engagement. The India study revealed that the average level of education in India currently is much higher than those participating in the US study, which may have been a reason why India’s data was better. Here are some of the key takeaways from the report:

  • 61% of the respondents were willing to work extra hours without any additional remunerative incentive
  • Employees from the Healthcare sector were the most engaged
  • Those from local government and education sectors were the least engaged
  • Larger companies, those with more than 100,000 employees had more actively engaged employees compared with smaller companies with an employee strength of 100 to 501
  • 76% of those working a long tenure of 15 and more years were highly engaged
  • 71% of employees with an annual income of over 1 crore were highly engaged
  • 15% in the income range of 1.5 to 3 lakh per annum were most disengaged
  • 30% of engaged employees indicated that they would stay in their current organization even if offered a 50% salary increase by a competitor
  • 58% exhibited pride in the company that they were working for

While these numbers do present a relatively good picture in India, the fact remains that 54% of the Indian workforce is somewhat dissatisfied with their job. According to a study by the Indian Council for Research on International Economic Relations, India’s “rapid economic expansion has boosted corporate profits and employee incomes, but has also sparked a surge in workplace stress”; and stress has been known to impact employee engagement and productivity levels. This makes it quite clear that today, organizations must take creative initiatives to boost engagement. Ensuring correct work allocation with realistic timelines, encouraging work life balance, promoting employee wellness and implementing a positive work culture are just some of the things organizations can do to increase employee motivation. This aspect will be even more front and centre as the talent war heats up. After all, talent is most critical to meeting business goals in today’s knowledge economy.