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CHAPTER 1 INTRODUCTION
1.1 Early in 2007, 4-consulting in association with DTZ Consulting & Research was commissioned to undertake research on the importance of employee engagement within the public sector and how the Scottish Executive could improve the engagement of its employees. A staged approach was adopted as follows:
- Stage 1 - a literature review of employee engagement covering both the public and private sectors
- Stage 2 - a review of the current status of employee engagement in the Scottish Executive and ways this could be improved.
The focus of this report is to present the findings of the Stage 1 literature review.
Objectives of literature review
1.2 Through discussion with representatives of the Office of the Chief Researcher ( OCR), it was agreed that the research would focus on the following areas:
- Setting the context of employee engagement in terms of its definition, historical development and context within the private and public sectors
- Understanding employee engagement in the public sector and the extent to which it varies compared to the private and voluntary sectors 1
- Reviewing interpretative models of employee engagement and their applicability to the public sector. The use of case studies should be used to give evidence of the practical application of employee engagement principles
- Examining the impact that commitment to the employee engagement process has on outcomes such as efficiencies within the organisation
- Establishing how employee engagement can be measured and monitored.
Literature review methodology
1.3 Our methodology was structured in three phases as follows:
- Search process - the identification of potentially relevant literature - this is the development of the 'long list'
- Screening process - the review of documentation on the long list to derive a 'short list' of the most relevant and seminal publications
- Analysis - the process by which the literature was analysed
Each element in this methodology is described in more detail in Annex B.
Report structure
1.4 Chapter 2 provides an overview of employee engagement and discusses how the concept has evolved through the literature, which enables definitions of employee engagement to be drawn out. It is demonstrated in Chapter 2 that employee engagement builds on earlier models of employee commitment, motivation and organisational citizenship behaviour, but is usually taken in the literature to go beyond these ideas. The key distinction often drawn is that engagement is a two-way interaction between the employee and the organisation, and that employees can be motivated and committed without necessarily engaging with the organisation.
1.5 Chapter 3 discusses the nature of the public sector with regard to its characteristics and the applicability of employee engagement vis-à-vis the private sector. This important assessment informs the discussions in the following Chapters which look at modelling engagement, quantifying its impact and measuring levels of employee engagement. Given that much of the relevant research and survey analyses that form the basis of these discussions have been carried out solely on the private sector or cover both sectors, it is necessary to examine the validity of interpreting results in terms of the public sector and translating lessons learned from the private to public sector.
1.6 Chapter 4 looks at the various models that attempt to model the drivers of engagement. Since engagement is considered in much of the literature to involve employees 'going the extra mile' or exerting discretionary effort, it is important to understand what motivates employees to work above and beyond the normal call of duty and what employees consider important rewards in return for the extra effort. Understanding what drives engagement from an employee's point of view is key for an organisation that wishes to increase engagement among its staff in a resource-efficient way. This helps to understand how organisations can lead and encourage engagement. In the main the models outlined in Chapter 4 are based on research and survey outcomes, and examples are provided across the public and private sectors.
1.7 Chapter 5 builds upon the models outlined in the previous Chapter and discusses some of the outcomes and impacts of employee engagement. As is highlighted, far from being an abstract concept, employee engagement is measurable and has real impacts upon the activities, outputs and outcomes of organisations. These impacts can be seen not only through effects on 'bottom line' financial outputs, but also in terms of productivity; the organisation or department 'climate'; the organisation's ability to achieve its strategies and outcomes; and in the case of the public sector, on the public's opinion and trust in that organisation. Examining the evidence, sentiment and several case study examples leads to a discussion on the importance of employee engagement.
1.8 Chapter 6 looks at methods by which employee engagement can be measured and discusses the best practice emerging in the literature in this regard. As is the case throughout this report, it is important that this discussion assesses the applicability of these measurement tools across the public sector, as many will originate, or have been tested in the private sector.
1.9 Chapter 7 concludes the report with a summary of the key findings.
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