THE IMPACT OF EMPLOYEE ENGAGEMENT ON ORGANISATIONAL PERFORMANCE: A BALANCED SCORECARD APPROACH

Abstract

Employee engagement is widely-considered to be a powerful and useful tool to assist organisations achieve competitive advantage. This study investigates employee perceptions regarding the impact of engagement on organisational performance in the Eastern Cape Province. Organisations often fail to enhance long-term business success when they focus narrowly on financial performance measures. This study, consequently, utilised the balanced scorecard (BSC) approach, consisting of financial, customer, internal process as well as learning and innovation measures to evaluate perceptions of organisational performance. A quantitative research design was utilised, surveying employees (n=428) from private organisations through non-probability convenience sampling. Using multiple regression analysis, the empirical results revealed that employee engagement positively and significantly influenced all four measures of the BSC.

Keywords

• employee engagement,organisational performance,balanced scorecard

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