Influence of Employee Engagement on Organisational Performance: A Case Study of Selected Private Sector Banks

Abstract

Employee engagement is a critical factor influencing organisational performance, particularly in competitive industries such as banking. This study examines the relationship between employee engagement and organizational performance in private-sector banks in the Karaikal district. Using a sample of 118 employees from nine private banks, data was collected through structured questionnaires and analysed using SPSS software. Key dimensions of engagement—vigour, dedication, and absorption—were evaluated for their impact on organizational performance through statistical tools such as correlation and multiple regression analysis. The results indicate that dedication and absorption have a significant and positive impact on organisational performance, while vigour shows a weaker, non-significant relationship. The findings highlight the importance of fostering dedication and absorption among employees to enhance productivity, customer satisfaction, and overall organisational success. Based on the analysis, policy recommendations include implementing targeted training programs, promoting work-life balance, and offering performance-based incentives to enhance engagement levels. Despite its contributions, the study is limited to a specific geographic and organizational context, suggesting the need for future research across diverse regions, industries, and organizational settings. This research contributes to the growing body of knowledge on employee engagement and provides actionable insights for improving organisational performance in the banking sector.