The impact of employee engagement on the work performance and loyalty of HR staffs

Abstract:

In this article, we investigate how engagement affects the work performance and loyalty of employees in the HR departments of small and medium-sized enterprises (SMEs) located in Ho Chi Minh City (HCMC). To gather data, the authors conducted a survey with 344 individuals working in HR departments at SMEs in HCMC. Using the PLS-SEM model and SmartPLS tool, we conducted a quantitative analysis and found that employee engagement has a positive impact on both work performance and employee loyalty. Furthermore, the results suggest that the working environment, training and development programs, and salary and welfare policies also have a positive impact on employee engagement. According to research, employees tend to become more loyal and productive when they remain with their organization. Out of these variables, the work environment and salary and benefits have the strongest influence on employee loyalty and performance, while training and development have a critical role to play in the long run.