Employee Engagement and Organisational Performance in the Indian Corporate Sector: An Empirical Study

Abstract

 Employee engagement has become one of the most widely discussed constructs in human resource management research, reflecting growing recognition that the discretionary effort, commitment, and emotional investment employees bring to their work has direct consequences for organisational outcomes. This paper empirically examines the relationship between employee engagement and organisational performance in the Indian corporate sector, drawing on primary data collected from 120 employees working in mid-to-large private sector organisations across information technology, banking and financial services, and manufacturing. A structured questionnaire employing five-point Likert scale items was used to measure three widely recognised dimensions of employee engagement — vigour, dedication, and absorption — alongside a perceptual measure of organisational performance covering productivity, quality of work, and goal achievement. Cronbach's alpha reliability testing, Pearson correlation, multiple linear regression, and one-way analysis of variance (ANOVA) across organisational tenure groups. The results show that all three engagement dimensions are significantly and positively correlated with organisational performance, with dedication emerging as the strongest individual predictor. Regression analysis indicates that employee engagement, taken as a composite construct, explains a substantial proportion of variance in perceived organisational performance. The findings reinforce the practical relevance of engagement-focused human resource strategies for Indian corporate organisations seeking to strengthen performance outcomes, and the paper concludes with managerial implications, limitations, and directions for future research.