Advances in Economics, and Management Research, volume 100

International Conference of Organizational Innovation (ICOI 2019) EFFECTIVE EMPLOYEE ENGAGEMENT USING SWOT ANALYSIS

Suyanti, Harmein Nasution (Magister Manajemen Universitas Sumatera Utara) Yeni Absah (Magister Manajemen Universitas Sumatera Utara)

Email: [email protected]

Abstract—Facing various challenges and very tight in order to increase the level of engagement. The author business competition, a company has to provide the found that using SWOT analysis will make it easier for best services possible to their customers. One of the leaders to focus on weak areas and to redesign their ways to compete in terms of performance and work and polices which will lead to a happy workforce available services is having exceptional employees and better teamwork. and a good team. This results in higher productivity uch of the existing literature presents comprehensive and better services. The best companies build and employee engagement models that bring the existing sustain a culture of engagement and they understand dimensions and drivers together within a conceptual that an employee is not just “nice to have” but that framework, such as from Khan, Gallup, Aon, Zinger, it is a critical part of achieving their business results. Ferry, Sirota, The Irresistible Organization. The many Leaders need to understand that employee discussion articles related to employee engagement can engagement is primarily their responsibility. also become company references. Companies need to Improving the employee engagement level seems to keep abreast of developments in employee engagement be easy but it isn’t. Companies are facing problems discussions periodically since different eras have and difficulties when it comes to formulating different thoughts and different approaches to making to create and retain engaged employees. their employees engaged. Considering those problems, the author has tried to explore the implications of SWOT analysis to II. LITERATURE REVIEW possibly drive engagement, which leads to A. Employee Engagement recommended strategic actions. SWOT analysis was chosen because it is a simple, universal and useful The following are some of the definitions and framework for analyzing an organization's meanings of employee engagement from several strengths, weaknesses, opportunities and any threats sources. Employee engagement is a fundamental that the organization faces, which includes assessing concept in the effort to understanding and describing, any engagement problems. This paper goes on to both qualitatively and quantitatively, the nature of the show that SWOT methodology can become a useful relationship between an organization and its employees tool to create activities and policies to boost the (Wikipedia, 2019). “Approach employees as true employee engagement level. partners, involving them in continuous dialogues and Keywords— SWOT Analysis on Employee processes about how to design and alter their roles, tasks Engagement. and working relationships – this means that leaders need to make it safe for employees to speak openly of their I. INTRODUCTION experiences at work (Kahn, 2015). The concept of employee engagement is often Employee engagement is the strength of the mental confused with satisfaction, happiness or well-being. and emotional connection that employees feel toward The real definition is deeper in meaning. It is defined as their places of work. Employee engagement is not the the level of an employee’s psychological investment in same thing as happiness, satisfaction or well-being their organization. Everyone knows that employee (Thompson, 2018). When we are engaged and when we engagement is an important thing that is needed to are emotionally committed, it means that we are going improve organizational performance and productivity, to put in our best effort. We are going to the extra mile. but many leaders fail to keep their employee engaged. Engagement is important and powerful (Kruse, 2015) The problems of low productivity, bad services being provided to their customers and the high turnover of SWOT analysis is a useful element of the strategic employees are probably causes of incorrect actions planning process, providing a clear summary statement made in this regard. These variables have encouraged of the organization's strategic position that is applied the author to review several studies related to employee from within the company and that is functional through engagement models and drivers, after which they used to the personal level (Evans and Wright 2009). The the SWOT analysis to determine strategies based on the usefulness of SWOT analysis is not limited to profit- existing strengths, weaknesses, opportunities and threat seeking organizations. SWOT analysis may be used in

Copyright © 2019, the Authors. Published by Atlantis Press. This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/). 336 Advances in Economics, Business and Management Research, volume 100 any decision-making situation when a desired objective itself and the work factor experience that leads to higher is defined and it may also be used in creating a engagement. recommendation during a viability study or survey 5) Korn Ferry Engagement Model (Wikipedia, 2019). The Korn Ferry Engagement Model produced a B. Review of Engagement Models pathway to productivity model which lists multiple Some of the models used have been listed below. drivers to engage and enable employees. The model describes the drivers of employee effectiveness that lead 1) Kahn Engagement Model to employee engagement, effectiveness and This model defined engagement as an employee’s productivity. The assessment of the two E’s— ability to harness their “full self” at work and it engagement and enablement—can provide identified the three psychological conditions that enable organizations with powerful insights for the betterment it: Meaningfulness, Safety and Availability (Kahn, of inclusion beyond diversity. 1990). Meaningfulness means that it is meaningful and 6) Sirota Engagement Model effective, safety means that it is confident and secured Sirota developed a distinctive model of Employee and availability means respect and trusted. His findings Engagement called Sirota’s Three Factor Model. The separate engagement from everyday hard work. A research suggests that engagement is achieved through diligent employee who can harness their full self will the satisfaction of three primary engagement factors: display loyalty and ownership. Kahn found that achievement, camaraderie and equity. engagement isn’t static – an employee’s experiences of 7) The Simple Irresistible Organization by Deloitte the workplace in different moments can cause University fluctuations in the level of engagement. 2) Gallup Engagement Model The Simple Irresistible Organization is a new model for employee engagement and a shift from improving Gallup defines engaged employees as those who are employee engagement to focusing on building an involved in, enthusiastic about and committed to their irresistible organization (Bersin, 2015). A Simple work and workplace. The Gallup model uses 12 Irresistible Organization has five elements that drive questions to measure and index employee engagement. engagement and 20 underlying strategies that work 3) Zinger Engagement Model together to make the organizations “irresistible.” These Engagement strategies must be authentic if they are 20 factors fit together into a system of engagement in an to inspire the employees to consistently perform their organization, one that is held together through a shared best as "superficial" attempts will have the opposite culture. effect (Zinger, 2009). The model provides organizations 8) SWOT Analysis with 12 keys that a manager must follow to achieve SWOT analysis helps an organization to focus on its significant results: Achieve Results, Craft Strategies, strengths, to minimize threats, and to take the greatest Enliven Roles, Excel at Work, Get Connected, Be possible advantage of any opportunities available to the Authentic, Live Recognition, Fully Engage, Identify organization. Using SWOT analysis will force the with the Organization, Serve Customers, Develop company to look at employee engagement in new ways Personally and Attain Happiness. The David Zinger and from new directions. To define an action list, a Model for employee engagement considers all of the leader should select people from different departments important aspects that could impact on the involvement, or divisions to utilize different points of view and to engagement and dedication of employees. make sure that there are representatives from every part 4) Aon Engagement Model of the company in order to get an entirely different Aon defines engagement as the psychological state perspective that will be critical to making the SWOT and behavioral outcomes that lead to better analysis successful (Parson, 2018). To construct and performance. Aon’s Engagement Model examines conduct the SWOT analysis, questions can be asked of interconnected levels including drivers, engagement the team that can help to explain each section and to outcomes and business outcomes. Employers can set promote creative thinking. Once the SWOT analysis is themselves up for continued success by focusing on the complete, there should be an attempt to match strengths key engagement drivers that have a positive impact on with opportunities. The company should try to convert their workforce and thus keep their employees engaged. weaknesses into strengths and to mitigate the threats. Companies with a highly engaged workforce have risen Many practitioners use SWOT as a tool for business to the challenge. They proactively respond to the and but it seems to be rarely used as a environment, competition and changing workforce strategic tool to review employee engagement. In this needs. They evolve but stay true to the values that made paper, the author used SWOT analysis for analyzing a them successful and well-positioned for continued company’s strengths and weaknesses while identifying success in the first place (Hewit, 2011). The Aon both the opportunities and threats that the company Engagement model provides a complete picture of the faces related to employee engagement. To illustrate business impact of engagement, employee engagement how this works, the author created a SWOT analysis example as below.

337 Advances in Economics, Business and Management Research, volume 100

TABLE 1. AUTHOR’S ILLUSTRATION OF THE III. METHODS SWOT FRAMEWORK AS RELATED TO The method used in this paper was the SWOT EMPLOYEE ENGAGEMENT methodology. This was used to review the problem of Helpful Harmful employee engagement based on strengths, weaknesses, Strengths Weakness opportunity and threats to the company. We defined 1. Complex organization planning and strategic decisions from the possible available drivers in order to accelerate engagement. 1. Employee Engagement 2. No platform for

Survey conduct employees raise issues IV.RESULTS AND DISCUSSION al 2. Has Solution Provider 3. Slow response in The outcomes from Table 1 and 2 captured the 3. Employee Engagement anticipate Employee strategic items for further development into initiative Intern survey result is given Engagement actions, as illustrated in the below table. 4. Initiative action taken 4. Initiatives action taken TABLE 3: INITIATIVE ACTIONS BASED ON THE not "kick" the problems SWOT ANALYSIS FROM TABLE 2 Opportunity Threats Drivers Items Initiative action 1. Employee Engagement 1. Higher Employee Focus on simplicity, removal of formal MBWA, maintained turnover Leadership bureaucratic Platform for Management By 2. Good workplace 2. Perform employee left rnal employees to raise issues Walking Around 3. Capability of management company and feedback Exte Listen Focus and Get Connected Communication 4. Aligment between people, 3. Inefficiency Transform structure and 4. Complicated Lives Flexible, Humane Considering Multi - Resources and inclusive TABLE 2: AUTHOR’S SWOT ANALYSIS FOR Generation TABLE 1 workplace Helpful Harmful Empowerment Innovations Motivation "Know Your Strengths Weakness Enliven Roles Work Life Balance Employee" 1. Strategy SO 2. Strategy WO Excel at Attractive Compensation Performance  Focus on simplicity, Performances / & Benefit Appraisal  Regular Survey Conduct removal of formal Efficiency bureaucratic

l  Platform for employees to According to the results from Table 3, we can see  Right Solution Provider raise issues and feeback that the SWOT analysis has a structural approach for the  Real-time feedback and  Listen, Focus and leader to use to translate the strategy into initiative Interna immediate actionable Transform solution action, which is a tool for planning purposes. By using  Refresh model and SWOT analysis, strategic and corrective actions will be  Leadership traits drivers of engagement easier to define. They will also help the leaders to focus Opportunity Threats and facilitate them in taking immediate actions to accelerate engagement. 3. Strategy ST 4. Strategy WT Different employees lay down different weights of  Approaching all level of  Considering multi- employees generation emphasis on the drivers which impact engagement.  Flexible, humane and  Attractive Compensation Several factors that an influence maybe come from nal inclusive workplace & Benefit include gender, age, diversity and the job characteristics  Developmental  Innovations themselves, thus employee engagement programs

Exter opportunities  Clear vision, purpose, should approach all levels of employee. Many solution  Work Life Balance transparency, inspiration providers help organizations to measure their employee Subcategorizing the four primary elements into engagement level. For a company, it can become internal and external factors isn’t necessarily critical to difficult to choose which provider needs to be used the success of SWOT analysis, but it can be helpful in because they often sound alike. As we know, each determining the next move or to evaluate the degree of provider has their own models, drivers and elements, control that you have over a given problem or even if some focus the same. A company can review, opportunity (Shewan, 2018). From the illustration choose or maybe combine which models and drivers are above, it shows that SWOT analysis assists the leaders the most effected and that fit to their needs based on the in identifying the perceived weaknesses and threats, company culture and employee characteristics. developing them with knowledge and the insights To plan strategic and initiative action, companies needed to make strategic decisions. can use SWOT analysis to review it as it is so simple and easy to focus on an area that needs to improve. SWOT is also trusted as it is a significant tool for that help leaders to identify both

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