Employee Engagement and Its Effect on Performance of Government Organizations in Ethiopia

Abstract

Although consultants and practitioners dominate about the role of engagement in improving performance, there is limited empirical evidences about the link between engagement and organizational performance in government organizations. Based on a sample of federal employees (n═340) of nine public service organizations, the link between employee engagement and organizational Performance is investigated. The study also examined the relationship between dimensions of employee engagement and organizational performance. Using Structural Equation Modelling, the result of the finding established that employee engagement has a direct and significant effect on organizational performance from Ethiopian context. It was also found that each dimensions of employee engagement has significant effect on organizational performance. The result of the study adds to the current script by incorporating employee engagement as a major factor to improve performance. The study suggested that modern organizations should design a strategy to build an engaged workforce to enhance performance.