Factors influencing employee engagement: Evidence from Thai SMEs

Abstract

Employee engagement is an approach that can increase the chances of business success, contributing to organizational and individual performance, productivity, and well-being. Successful organizations, of any size or type, must have engaged employees who commit to their organisation’s goals and values, are motivated to contribute to organisational success, and have work devotion. However, since SMEs possess much fewer financial and non-financial resources than large organizations, understanding factors that promote engagement for employees becomes more essential. This research study aimed to explore what promotes employee engagement and provide insights to SMEs managers on how to implement human resource management practice and policy that could reinforce employee’s job satisfaction and engagement in order to drive business performance. The model was tested using web-based survey from 475 employees working in Thai SMEs. PLS-SEM results revealed that remuneration satisfaction, selfleadership, and interpersonal leadership positively influenced employee engagement. Moreover, the partial mediation effect of job satisfaction contributes to the understanding of the full-range model of engagement for SMEs through job satisfaction.