Impact of Employee Engagement on Employee Performance in Sri Lankan IT Industry

Abstract

This study investigated the impact of employee engagement on employee performance in the Sri Lankan IT industry. Employee engagement is considered one of the critical metrics for modern organizations. It highly impacts the growth of the organization and it is seen as a powerful source of achieving competitive advantage regardless of the nature of the industry. Empirical investigations still propose and argue the importance of employee engagement-related strategies in different industries including the IT industry. Three drivers of employee engagement namely employee empowerment, employee growth, and employee relations were selected based on the literature findings to analyze their impacts on employee performance. The research design was descriptive and quantitative in nature. The sample size of the study was 384 IT professionals in the Sri Lankan IT industry and a structured questionnaire was employed as the research tool. The sampling method was convenience sampling. Data were analyzed considering 234 responses after executing the data cleaning process by using SPSS Version 25.0. Data analysis was performed by implicating descriptive statistics, Pearson correlation, and regression analysis methods. The findings of the study concluded that employee engagement has a positive significant impact on employee performance. Moreover, the study also concluded that employee empowerment, employee growth, and employee relations attribute a significant influence on employee job performance. Paper presents managerial implications for IT sector organizations in Sri Lanka considering holistic HR practices overall.