AVON PRODUCTS CASE STUDY

Employee engagement is today’s leadership priority. However, the catchphrase goes a long way back in the beginning of the 21st century. It has gained interest to this date, which can be credited to Gallup’s first version of the Q12 in the 1990s commonly termed as the Gallup Workplace Audit (Gallup Consulting, 2006). Subsequently, Gallup has continuously refined and expanded their Q12 for current business challenges. Furthermore, several literatures, surveys and evidence-based studies abound that exhibited positive results with employee engagement such as increased performance, safety, retention and profits among others.

3.2 Evaluate the business benefits likely to accrue from a culture of employee engagement – benefits for the organization, its executives/managers, its workforce and its customers

Employee Engagement: It’s a known perception that an engaged workforce provides many intangible benefits that is linked directly to retention. HR policies should focus on employee engagement initiatives that stimulate motivation levels of employees to perform better and bond with organisation. This process should be initiated right from induction and continue throughout their tenure by opening channels of continuous communication and encouraging interpersonal relations. HR is responsible to incorporate methods to measure engagement and at regular intervals track engagement contribution to company’s success.

Engagement is a sign of satisfaction and loyalty to the firm which can be incurred by increasing job resources

Employee engagement, which reflects the emotional commitment an employee has to an organization is not just an organizational nicety but a business necessity due to direct ties to a number of performance outcomes, such as profitability,

However, the benefit of knowing what those items were was not provided; only the summary results were given. The specific results of this survey found that manager who had a higher well-being was associated with increased manager engagement, lower manager turnover and increased employee engagement, which led to increased business outcomes. Manager engagement is a key factor influencing employee engagement as suggested in other surveys in this document and is also related to the suggested outcome of the writers report there is a correlation between employee engagement and leading by example.

Employee engagement has been a trend of management since 2004.(CMI 2015) ‘Some people may believe that engagement is just about employees ‘going the extra mile’, but it is much more.’(CMI 2014) Within globalization, how to apply employee engagement is significant for an organization to achieve their performance. A key aspect of employee engagement concerns how employees manage their position, performance and development in relationship to the company’s strategies. Therefore, according to Moenguc (2013), employee engagement has been personalized as a“persistent, positive affective-motivational state of fulfillment.” To demonstrate how this process affects the overall performance of an organization, John Lewis has been selected as the case study

Engagement is more than just happiness. It involves commitment and helping others accomplish goals, whether it’s personal or for work. When people are engaged they do everything possible to complete that task, take full responsibility of the projects that is at hand, stay positive, deliver great work, and go above and beyond to make sure that they do great at the goal that was set. Engagement is the most important factor needed of any person for the achievement of any company in order to succeed.

Engagement has been shown to be a significant and effective tool to increase the bottom-line. A study by Lyubomirsky, King, & Diener (2005) also notes that individuals that show positive attitude and cheerful characteristics receive more positive

Talent Management now has a proverbial seat at the boardroom table; Leadership bench strength - or the lack thereof - is reflective in bottom line earnings; Leaders in development programs are not as engaged as initially thought; and the importance of talent acquisition amplifies the fact that a company cannot

Companies that have higher levels of engaged employees have higher earnings per share (EPS) than companies that have lower engagement levels (Kelleher, 2011). Engaged employees are more productive, have higher levels of customer loyalty and help their employers become more profitable. An engaged employee is less likely to leave their current position. This saves their company money because there is no need to spend money to hire and train new personal. These saving can be passed along to the employees for increased wages, bonuses, and benefits. All of these items help in motivating employees, to attempt to engage the disengaged.

This Literature Review will discuss the usefulness and effectiveness of the employee voice, the use of engagement surveys, what employee engagement is, and examine the links between and the affect of the psychological contract, and its similarities to motivation, and to what impact do line managers have on engagement overall, which relates to the research objectives for this report.

Employee engagement in the workplace is essential for any productive and successful business. It is a level of commitment and involvement an employee has towards their organization and its values. An engaged employee feels a sense of purpose and belonging, and has the drive to improve performance for the overall benefit of the organization. Effective engagement of one employee will motivate others, inspiring the entire atmosphere of the workplace to where all employees are focused on their organization’s success.

Over the past few years, Avon’s stock and net income has declined as a result of misplaced focus in different areas throughout the company. Under the former CEO, Andrea Jung, the company had an internal focus, was expanding too fast, and failed to recognize the needs of consumers in different markets. Under the new CEO, Avon is improving by focusing more on sales representatives, cutting jobs, reducing spending, and pulling out of failing markets. Additionally, they are incorporating information systems and social media as selling tools, catering to individual markets, and foregoing other growth areas until the core business is stable. With these improvements, Avon expects that it will see a turnaround in the coming years.

Meeting the demands of today's changing business environment requires building and retaining a loyal and motivated staff. However, finding and keeping quality employees also pose a challenge to human resource management. Today's workers are no longer inclined to stay at one company for the duration of his or her careers. The most talented professionals often are courted by other businesses and the effects of turnovers can be costly. The time and money it takes to recruit, rehire and retain can quickly cut into the company’s bottom line. Employee turnover is inevitable but when excessive can put a company into the red. Many new employees do not become fully productive until they’ve been trained and gain experience, a process that usually takes several months. The time, effort, and money invested in those employees, walk out the door when they leave.