How Strategic Human Resource Practices Increase Employee Engagement

Introduction

Employee Engagement is generally identified as a key factor in achieving organizational accomplishment. Normally engaged employees have higher level of commitment, performance and motivation. Engaged employees are not only more productive but also more loyal and self-satisfied with their jobs. In this context, Strategic Human Resource Management (SHRM) plays a vital role in creating this engagement.

Hence, this blog explores how strategic human resource practices can significantly increase employee engagement and overall performance.

(Source: https://team-building.org/corporate-team-building/)

What is Employee Engagement

Employee Engagement refers to the emotional and mental connection that employees have with their tasks, team and with the organization. Kahn defined employee engagement as ‘the harnessing of organization members’ selves to their work roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during role performances (Armstrong & Taylor, 2020).

Importance of Engagement

Employee Engagement has become a key priority in modern human resource strategies because of its direct impact on productivity, customer satisfaction, employee retention and also company reputation. Organizations with higher engagement rates normally experience lower risks, lower absenteeism and better business outcomes. In highly competitive organizations, engaged employees can become a main source of competitive advantage. According to Edirisinghe and Johar (2018), higher employee engagement in Sri Lankan firms is significantly associated with improved innovation capacity, job satisfaction, and reduced absenteeism. Therefore, creating and maintaining engagement is no longer optional, it’s necessary for sustainable organizational success.

(Source: Employee Engagement–Human Resource Management, Protouch Training, YouTube)

Strategies and Practices for Enhancing Employee Engagement

According to Robinson, Perryman & Hayday (2004) there was a generic emphasis on six managerial practices such as: good quality line management, two-way communication, effective internal co-operation, a development focus, commitment to employee well-being and clear accessible HR policies and practices, to which managers at all levels are committed. Human Resource Management focuses on developing and implementing policies and practices related to job design, learning and development, performance management and reward. These practices not only benefits to the organization but also enhance employee engagement. However, the most important value is created by line managers.

The role of line managers

The line manager’s role is the key role for enhancing employee engagement due to they work closely with team members on daily. And also they directly influence how employees experience their task and workplace, manage functions and workloads and also receive feedback. Furthermore, line managers are responsible for setting clear goals, providing recognition and enhancing career development to keep employees motivated and committed.

According to Armstrong (2011), Line managers are responsible for putting rules into effect and enforcing them. The key distinction is how they demonstrate leadership through communication, problem solving, listening to recommendation, asking people’s opinions, mentoring and guiding and managing lateness, absence and quality.

Therefore, when line managers create trust, treat employees equitably, also pay attention to their concerns, employees are more likely to feel valued and emotionally connected to the job roles. For this context, well-built and encouraging leadership at the line management is one of the paramount factors in driving engagement in any organization.

Job Design

Job design specifies the contents of jobs in order to satisfy work requirements and meet the personal needs of the job holder, thus increasing levels of employee engagement (Armstrong & Taylor,2020). Well-planned jobs play a key role in enhancing employee engagement. As noted by Jayawardena and Samarakoon (2021), well-designed job roles improve psychological empowerment and intrinsic motivation in Sri Lankan service firms. When job design include variety, self-determination and opportunities for career development, employees are more likely to feel more satisfied and committed. Therefore, job design is a strategic tool that reinforce employee engagement and also performance.

Aligning employee roles with organizational purpose

Employees are more likely to be engaged when they clearly understand how their daily work contributes to the organization’s success. Therefore, strategic human resource management ensures that job roles are well defined and connected to the organization’s mission and values. To align this practice HR department can communicate the company’s vision & strategic objectives to all the staff, ensure each department’s goals reflect the overall business plan, and also link individual performance targets to organizational KPIs (Key Performance Indicators).

Providing opportunities for learning and development

Normally, all the employees want to grow personally. So learning and development programs can ensure that people have the opportunity and are given the encouragement to learn and grow in their roles. This include the use of policies that focus on role flexibility- giving people the chance to develop their roles by making better and extended use of their talents (Armstrong & Taylor, 2020).According to Senaratne and Gunawardane (2015), training and development significantly enhance employee morale and organizational citizenship in the Sri Lankan banking sector.

For this, HR department can implement regular skill gap assessment, leadership & cross functional training programs and also introduce career pathways with internal opportunities.

Developing engagement through Reward and Recognize

Admiration is a key strategy to employee motivation. Therefore, Strategic human resource systems must assure that recognition is specialized, timely and placed with organizations values.

Reward Management is not just about pay and employee benefits. It is equally concerned with non-financial rewards such as recognition, learning and development opportunities and increased job responsibility (Armstrong,2007).

For developing engagement through reward and recognize HR should create reward systems that are transparent, fair and valuable. Basically this include financial rewards like incentives, bonuses and non-financial rewards like awards, promotions or professional development opportunities.

Work-life balance and well-being initiatives

For improving employee engagement, it is important to create a healthy work life and supporting employee wellbeing. The main thing is employees should be managing their job responsibilities with their personal lives. Most importantly work life balance reduces stress, prevents burnout and increase both mental and physical health which enhance job satisfaction and engagement levels. Most of the companies now offer flexible working arrangements, mental health supportive programs and workshops and wellness programs to ensure employees are not overwhelmed. However, work-life balance and employee well-being practices are not just employee benefits, they are strategic tools that directly affect to the engaged employee’s satisfaction.

Maintain equal opportunities 

Ensuring and creating equal opportunities among the staff is also the main practice that can be enhance employee engagement. When employees observe that they are treated equally and fairly despite of their gender, age, ethnicity, religious or background, they are more likely to feel more respect, valued and emotionally attached to the workplace. And also it helps to maintain the open communication and collaboration. Most of the companies now provide equal opportunities to career development, leadership programs and recognition methods.

(Source: https://www.thequint.com/lifestyle/international-underlings-day-2024-date-history-significance)

Examples for effective employee engagement with its impact in local context

A good example of employee engagement through strategic human resource practices can be seen at Hayleys PLC. According to the 2023/24 Annual Report, company has focused on enhancing employee engagement through broad set of initiatives. It has included tailored management and leadership development programs, with over 45000 leadership training hours delivered, and the “FYOUTURE” management trainee program designed to prepare future leaders. Furthermore, they have introduced a range of well-being initiatives such as flexible working arrangements, mental and physical health support, and family friendly leave, child care benefits to promote and enhance work life balance. And also, wellness programs like substance abuse and addiction prevention, relaxation techniques for daily life, dietary awareness, breast cancer awareness and also HIV awareness programs to both men and women’s wellbeing for a sustainable tomorrow. Moreover, its commitment to diversity, equity and inclusion was reflected through group wide training, gender equality benchmarking and empowering policies across the sectors. And also formal internal communication platforms (Quarterly CONNECT magazine and employee broadcast conducted through office 36 platform), employee satisfaction surveys, and year round calendar of sports, cultural and other events (Art competition for employees and children, Hayleys Cricket 6’s Tournament, Family fun day, Quiz competition, Multi-religious and other cultural ceremonies etc.) strengthened organizational team spirits. These practices and initiatives demonstrate how Hayleys PLC integrates strategic human resource management with peoples oriented values to drive sustainable engagement with more than 36000 of workforce. As a result, Over the past three years, Hayleys PLC achieved a 12% reduction in absenteeism, driven by effective wellness and engagement programs. The company also developed over 50 mid-level leaders internally, reflecting its focus on talent growth. Cross-functional collaboration further enhanced operational efficiency and innovation across departments.

Summary of examples in few other reputed companies

Company	Key Engagement Areas	Business/HR Impact
MAS Holdings	Leadership development, Wellness, Eco-teams	+22% promotions, 18% female retention, ISO certified plants
John Keells	Volunteering, digital Reward & Recognition, Innovation	+14% engagement score, LKR 20Mn saved, top employer ranking
Dialog Axiata	Recognition, Innovation, Feedback loops	+15% innovation projects, -9% turnover, GPTW certified
Brandix	Suggestion schemes, Mobility, Rewards	+12% productivity, +16% engagement index, reduced attrition
Hemas	CSR leave, Wellness, Talent growth	95% performance review uptake, +internal leadership promotions

Conclusion

Employee engagement is not just the result of one action, it’s a combination of consistent of human resource strategies. Strategic human resource management helps organizations to build a workplace where employees feel valued, motivated and connected to the organization’s long-term goals. As discussed through above examples, investing in strategic human resource practices leads to stronger performance, lower turnover and more committed workforce.

References

Armstrong, M., 2007. Employee Reward Management and Practice. 2nd ed. London: Kogan Page. Available at: https://hrproblog.wordpress.com/wp-content/uploads/2012/05/a_handbook_of_employee_reward_management_and_practice.pdf  [Accessed 7 Apr. 2025].

Armstrong, M., 2011. Armstrong’s Handbook of Strategic Human Resource Management. 5th ed. London: Kogan Page. Available at: http://ndl.ethernet.edu.et/bitstream/123456789/53631/1/209.pdf  [Accessed 6 Apr. 2025].

Armstrong, M. and Taylor, S., 2020. Armstrong's Handbook of Human Resource Management Practice. 15th ed. London: Kogan Page. Available at: http://lib.ysu.am/disciplines_bk/396cc355b0872e10dce44096b55c53be.pdf [Accessed 26 Mar. 2025].

Brandix Lanka Limited, 2023. Sustainability Report 2022/23. Available at: https://www.brandix.com/sustainability/  [Accessed 17 Apr. 2025].

Dialog Axiata PLC, 2023. Integrated Annual Report 2022. Available at: https://www.dialog.lk/investor-relations  [Accessed 17 Apr. 2025].

Edirisinghe, R. and Johar, M.G.M., 2018. The Impact of Employee Engagement on Organizational Performance in Sri Lanka. Sri Lankan Journal of Human Resource Management, 9(1), pp.35–50.

Hayleys PLC, 2024. Annual Report 2023/24. Available at: https://www.hayleys.com/hayleys-annual-report/pdf/Pg-256-265-Human-capital.pdf  [Accessed 10 Apr. 2025].

Hemas Holdings PLC, 2023. Annual Report 2022/23. Available at: https://www.hemas.com/investor-relations/  [Accessed 17 Apr. 2025].

Jayawardena, R. and Samarakoon, M., 2021. Job Design and Employee Engagement: Evidence from the Sri Lankan Service Sector. Journal of HRM and Development, 4(2), pp.22–36.

John Keells Holdings PLC, 2023. Sustainability Report and Integrated Annual Report. Available at: https://www.keells.com/investor-relations [Accessed 17 Apr. 2025].

MAS Holdings, 2022. Sustainability and CSR Programs Overview. Available at: https://www.masholdings.com/sustainability/  [Accessed 17 Apr. 2025].

Protouch Training. (2021). Employee Engagement – Human Resource Management [Video]. YouTube.(Accessed: 17 April 2025).

Robinson, D., Perryman, S. and Hayday, S., 2004. The Drivers of Employee Engagement. Brighton: Institute for Employment Studies. Available at: https://www.employment-studies.co.uk/system/files/resources/files/408.pdf  [Accessed 7 Apr. 2025].

Senaratne, S. and Gunawardane, D., 2015. The Impact of Training and Development on Employee Engagement: Evidence from Sri Lankan Banks. Journal of Management and Economics, 6(1), pp.45–58.