School of Management and Economics

Department of Business and Management

Executive Master in Business Administration

“The Role of HR in Driving Employees Satisfaction

and Engagement”

Prepared by: Ribaz Ayoob Qader

Executive Master in Business Administration

Word Count: 3234

Thursday, 30th Jan 2025

Abstract Table of Contents

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 1. Abstract ...................................................... 3
2. Introduction .............................................. 4
a. Background of the Study .................... 4
b. Statement of the Problem ................... 4
c. Research Objectives ........................... 5
d. Research Questions ........................... 5
e. Significance of the Research ............... 6

3. Literature Review ................................... 7

1. Employee Satisfaction and Engagement: Concepts and Definitions ... 7
2. The Role of HR in Recruitment and Onboarding ............................ 7
3. Performance Management and Its Impact on Engagement ............. 7
4. Training and Development: Enhancing Engagement....................... 7
5. Compensation and Benefits: A Motivational Tool ........................... 7

4. Method ................................................... 8
1. Research Design and Type .................. 8
2. Data Collection................................... 8
Quantitative Data Collection........... 8
3. Sampling Strategy............................. 9
Quantitative Sampling ................... 9
Data Analysis Methods.................... 10
Quantitative Data Method ............ 10

2. Conclusion ........................................... 10
3. References .......................................... 10/11

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Abstract:
Employee satisfaction is a backbone for Human resource department and company to have a
good plan and program to retain employees due to by retain employee company reputation, per-
formance also impact on time, cost to keep employees .employee satisfaction and engagement
are fundamental drivers of organizational success, affecting productivity, retention, and overall
performance. This research investigates into the essential role of Human Resources (HR) in culti-
vating a work environment that promotes high levels of employee satisfaction and engagement.
The study examines several HR strategies, such as effective recruitment and onboarding, perfor-
mance management, training and development, compensation and benefits, and initiatives aimed
at shaping workplace culture also implement a relax atmosphere among employees to feel that
company work to retain employee to not thing to look for another company .
Additionally, the research investigates the connection between HR practices and key employee
outcomes, including promotion, motivation, job commitment, provide life and medical insur-
ance, job security and organizational loyalty. By integrating a comprehensive literature review,
case studies, and employee surveys, this study uncovers best practices for HR professionals in
fostering a successful workforce.
The findings indicate that proactive HR policies, transparent communication initiatives have a
substantial impact on increasing engagement levels and job satisfaction. The research under-
scores the importance of aligning HR strategies with organizational goals to build a culture of
continuous improvement, employee well-being, and long-term success.
Eventually, this study provides actionable insights for HR leaders and organizations striving to
optimize their workforce and enhance organizational effectiveness, ensuring supportable growth
and a positive work environment for all employees.
This research underscores the importance of HR professionals in not only managing operational
aspects of the workforce but also in taking a strategic approach to employee satisfaction and en-
gagement. By fostering a positive organizational culture, offering meaningful career develop-
ment opportunities, and ensuring fair compensation, HR can drive significant improvements in
employee retention, motivation, and productivity. As from my experience in HR we have stable
crew during operation with less turnover due to we have a strong communication , job satisfac-
tion , equality among employees , promotion , salary review it impact on retain employees .
Through its comprehensive analysis, the research contributes valuable knowledge to the field of
Human Resource Management and serves as a practical guide for HR professionals seeking to
build a motivated, engaged, and loyal workforce that can adapt to the challenges and opportuni-
ties of a constantly evolving business world.

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Introduction:
Background of the study
Employee engagement is the heart and soul of an organization and is living proof that it is a
better place to work. Kevin Kruse, a staunch proponent of employee engagement, cautions,
engage your employees or lose them. This warning reminds us of the critical role of
engagement in keeping the most valuable employees and a successful work environment. The
employee satisfaction and engagement have impact on company to play in driving productivity,
creativity, and overall success, making it more important than ever to develop a culture of
dedication and happiness. Today, we will discuss the importance of employee engagement, its
varied influence on organizational dynamics, and tactics for creating an atmosphere in which
employees feel appreciated, driven, and completely committed to the company's vision and
goals ( Sultania, 2024 ) in Delhi, India IN XEBO As the Co-Founder and CEO of company .
(Verlinden, 2025) One of the biggest issues facing HR departments today is employee
engagement. Employee unhappiness and lack of motivation can lower enthusiasm, energy, and
productivity at work. You can establish a work atmosphere that motivates employees to
provide their best effort every day by putting effective employee engagement techniques into
practice.
( Franz ,2024) states: “Employee engagement cannot be a strategy because engagement comes
from within the employee. It’s the emotional connection or commitment that an employee has
to the organization that then causes the employee to want to put forth the additional effort to
ensure the organization and the brand succeed.” While recognizing the internal nature of
employee engagement, this article will focus on the practical steps organizations can take to
implement effective employee engagement strategies. Employee satisfaction and engagement
have become critical drivers of organizational success in today’s competitive business
environment. As businesses increasingly recognize that employees are their most valuable
assets, the focus on creating a motivated and committed workforce has gained significant
importance. The role of Human Resources (HR) has evolved from administrative functions to
strategic enablers of employee well-being and performance, making this topic particularly
relevant in the modern workplace

Statement of the problem:

Another subjective issue is job satisfaction, which can have an impact on performance reviews
and jeopardize the employer-employee relationship by causing conflict between supervisors
and subordinates. Employers can, however, identify issues with job satisfaction and
performance reviews by using surveys, employee input, and supervisor reviews (Bahani, 2013).
(SYAIDATUL, 2013) Despite the evident benefits of employee satisfaction and engagement,
many organizations struggle to achieve optimal levels in these areas. High employee turnover,
low productivity, and workplace disengagement are persistent challenges that cost businesses
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significantly in terms of both financial and human capital. Studies reveal that disengaged
employees are less productive and more likely to leave their jobs, creating a cycle of instability
and increased recruitment costs. Moreover, a lack of employee satisfaction often leads to
workplace dissatisfaction, absenteeism, and even mental health issues, which further impede
organizational success
The root causes of these issues often stem from inadequate HR strategies, poor
communication, and a lack of focus on employee development and recognition. As such,
understanding the role HR can play in addressing these challenges is essential for businesses to
build a motivated and resilient workforce. This research aims to investigate these issues and
explore how HR departments can become catalysts for positive change in employee satisfaction
and engagement.
(Dasari,2019) in article stated that Kavitha Dasari mentioned in his research job satisfaction is a
emotion of employee regarding his work, when an employee satisfied with his job his job
performance is up to the mark and his work attitude such as absenteeism, respect, initiatives
accomplishment of task would be good so that organization can perform well in the market in
this regard organizations should focus on employee satisfaction in order to draw out from the
employees to be successful in the market. It industry is always required talented employees
and job performance in such industry it is required to focus on what factors influence employee
job satisfaction and how job satisfaction increase employee performance.

Research Objectives:
The following are the main objective of the study
1) To measure the satisfaction level of employees.
2) To know the employee satisfaction towards the facilities available.
3) To identify the factors influencing employee satisfaction
4) To identify the factors improving the satisfaction level of employees.

Research questions
How does HR influence employee satisfaction and engagement within an organization?
What HR practices are most effective in increasing employee engagement?
How does the quality of communication between HR and employees impact employee
satisfaction?
What is the relationship between employee recognition programs and overall engagement
levels?

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Significations of the research
The importance of research on HR's role in employee satisfaction and engagement can be
bounded in several key areas:
Improved Organizational Performance: Research can reveal how HR practices impact overall
business outcomes. Employee satisfaction and engagement are linked to higher productivity,
reduced absenteeism, and better quality of work. Understanding these links helps organizations
optimize HR strategies to enhance performance.
Employee Retention: Engaged employees are less likely to leave an organization. By identifying
the HR practices that drive engagement and satisfaction, the research can help reduce turnover
rates, which can be costly to organizations due to recruitment, training, and lost productivity.
Enhanced Employee Well-being: Employee satisfaction is closely connected to well-being, and
HR plays a critical role in creating a work environment that promotes mental, emotional, and
physical health. This research can guide HR in implementing wellness programs that improve
the overall well-being of employees, leading to a healthier and more motivated workforce.
Employer branding and talent attraction: Studies on worker happiness and engagement can
assist businesses in developing a powerful employer brand. Top talent is drawn to companies
with a reputation for high employee happiness, which gives them a big edge in the hiring
process.
Alignment with Organizational Goals: Employee engagement increases the likelihood that they
will share the company's values and objectives. Better strategic outcomes may result from HR's
role in promoting engagement, which keeps workers inspired and committed to helping the
company succeed.
Making Well-Informed Decisions: The research's conclusions give HR data-driven insights that
enable better decision-making. The efficacy of HR interventions can be increased by HR
practitioners customizing their engagement and satisfaction tactics based on evidence.

Customization of HR Practices: Different organizations and employee groups may require

different engagement strategies. Research can help HR departments understand what works
best for their unique workforce, leading to more customized and impactful HR practices.

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 Literature Review
Employee Satisfaction and Engagement: Concepts and Definitions

Employee satisfaction refers to the pleasure of employees with their job roles, compensation,
benefits, and the overall work environment (Locke, 1976). Satisfaction often focuses on an
employee’s attitudes towards their job, whereas employee engagement represents a deeper
emotional connection to the organization, characterized by enthusiasm, commitment, and
discretionary effort (Schaufeli et al., 2002). While satisfaction is often seen as a sign to
engagement, engagement involves active involvement in work and a stronger connection to the
company’s mission and values (Saks, 2006).

Hypothesis 1: Employee satisfaction positively influences employee engagement, where

higher satisfaction levels lead to increased emotional commitment and discretionary effort.
The Role of HR in Recruitment and Onboarding

Recruitment is the first step in shaping employee satisfaction and engagement. HR's role in
attracting and selecting candidates who align with the organization's culture is crucial for long-
term engagement (Kristof-Brown et al., 2005). According to Bauer et al. (2007), a structured
and effective onboarding process is equally important in ensuring that employees feel
welcomed, informed, and prepared for their roles. Well-executed recruitment and onboarding
processes help in creating realistic job expectations, reducing early turnover, and fostering a
positive first impression of the organization.

Hypothesis 2: A well-structured recruitment and onboarding process significantly

enhances employee engagement and reduces early turnover by aligning employees with
organizational culture and expectations.
Performance Management and Its Impact on Engagement

Performance management is another critical HR function influencing employee engagement.

Research indicates that clear goal-setting, regular feedback, and performance recognition are
key drivers of both satisfaction and engagement (Aguinis, 2009). When employees receive
constructive feedback and recognize that their efforts are valued, they are more likely to
engage deeply with their work and feel satisfied with their performance (Harter et al., 2002).
Effective performance management systems also provide employees with a sense of
progression, which is vital for engagement (Eisenberger et al., 1986).

Hypothesis 3: Effective performance management, including clear goal-setting, regular

feedback, and recognition, positively impacts employee engagement by fostering a sense of
value and professional growth.
Training and Development: Enhancing Engagement

Training and development programs are essential in enhancing employees' skills and
competencies, contributing to greater job satisfaction and engagement. HR’s responsibility in
offering continuous learning opportunities fosters a sense of growth and development, which is
strongly correlated with higher levels of job satisfaction (Maurer et al., 2003). Additionally,
employees who believe their employer is investing in their personal development tend to
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exhibit higher levels of engagement (Kahn, 1990). HR’s role in promoting professional
development opportunities encourages employees to feel valued, enhancing their commitment
to the organization.

Hypothesis 4: Continuous training and development opportunities increase employee

engagement by enhancing skills, fostering career growth, and strengthening employees'
commitment to the organization.
Compensation and Benefits: A Motivational Tool

Compensation and benefits have long been considered fundamental to employee satisfaction
(Herzberg et al., 1959). HR's role in designing competitive pay structures, health benefits, and
rewards programs has a significant influence on engagement levels. Although extrinsic rewards
are important, studies suggest that intrinsic motivators, such as recognition and meaningful
work, play a larger role in driving long-term engagement (Deci & Ryan, 1985). Therefore, HR’s
task is not only to offer competitive salaries but also to align compensation strategies with an
employee’s personal values and motivations.

Hypothesis 5: Competitive compensation and benefits positively influence employee

satisfaction, but intrinsic motivators, such as recognition and meaningful work, play a
more significant role in sustaining long-term engagement.

Methods

This study adopts a mixed-methods approach, combining both qualitative and quantitative
research techniques to explore the role of Human Resources (HR) in driving employee
satisfaction and engagement. The mixed-methods approach allows for a more comprehensive
understanding by integrating qualitative insights with quantitative data, providing both breadth
and depth in the exploration of the research topic.

Research Design

The study follows a descriptive research design, aiming to examine the relationship between HR
practices and employee satisfaction and engagement. The primary objective is to identify HR
practices that positively influence these employee outcomes and assess how they contribute to
overall organizational performance. The descriptive design will support the collection and
analysis of both qualitative and quantitative data.

Data Collection Methods

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Quantitative Data Collection
Quantitative data will be gathered through a structured survey questionnaire designed to measure
key dimensions of employee satisfaction and engagement, influenced by HR practices. The
questionnaire will focus on the following areas:
 Recruitment and Onboarding: Employee perceptions of the recruitment process, onboarding
effectiveness, and their early experiences in the organization.

 Performance Management: Employee views on performance appraisals, feedback systems, and

the recognition they receive for their efforts.

 Training and Development: Employee access to career development opportunities, skills en-
hancement, and their satisfaction with these learning initiatives.

 Compensation and Benefits: Employee satisfaction with compensation, benefits, and reward
systems.

 Workplace Culture: Employee perceptions of organizational culture, leadership, team dynamics,

and work-life balance.

The survey will use a combination of Likert-scale questions (e.g., from strongly agree to strongly
disagree) the data will help quantify the impact of HR practices on employee satisfaction and
engagement levels.

3. Sampling Strategy

Quantitative Sampling
For the survey, a stratified random sampling technique will be used to ensure diversity across
different job levels (e.g., managerial vs. non-managerial), departments, and years of experience.
This method will help achieve a representative sample of employees, enhancing the
generalizability of the findings. A target sample size of at least 100 employees will be pursued to
ensure statistical significance.

4. Data Analysis Methods

Quantitative Data Analysis

The survey data will be analyzed using descriptive statistics (e.g., mean, standard deviation) to
summarize employee responses and identify trends in satisfaction and engagement. Correlation
analysis will be performed to explore relationships between HR practices and employee
satisfaction/engagement. Regression analysis may be conducted to determine the strength and
direction of these relationships.
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Conclusion:
In conclusion, the role of HR in employee retention and engagement is crucial for building a sus-
tainable and productive workforce. By implementing effective recruitment strategies, fostering a
positive organizational culture, providing continuous learning opportunities, and ensuring com-
petitive compensation and benefits, HR can play a significant role in keeping employees moti-
vated and satisfied. Moreover, regular communication, recognition, and clear career progression
pathways help in strengthening employee engagement. Ultimately, an engaged and satisfied
workforce leads to lower turnover rates, higher productivity, and enhanced organizational suc-
cess. HR’s commitment to these areas not only enhances the employee experience but also con-
tributes to the overall growth and success of the company. In live experience during decade
working with employees job security , promotion , safety of working , reputation of company all
is factor to retain employees behind this communication impact on how retain employees also
listen to employee and feeling family environment with worker there is a lot of tools to retain
employee it depend on location , mentality how the people open minded and understand the ben -
efit of employee in company we have an employee more than 35 years in same company once
asked him what is the reason he said due to company have policy , development plan , promotion
, salary align with market .

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