Employee Engagement Strategy on Company Performance: A Case Study of Automotive Component Manufacturing Company

Abstract

The era of globalization and the VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) environment presents significant competitive challenges that companies worldwide must confront. To survive and sustain their business, companies need to prepare, particularly by developing their human resources.  Companies require employees who are not only competent but also capable of making substantial contributions.  This is often referred to as employee engagement, reflecting employees' loyalty to the company, demonstrated through their hard work and resilience in their roles. In practice, numerous studies indicate that the percentage of employee engagement remains relatively low. Therefore, this case study aims to identify the factors influencing employee engagement and the engagement strategies implemented at an automotive component manufacturing company located in Karawang.  The findings of this case study reveal that the dimensions of employee engagement include organizational factors, job characteristics, personal characteristics, and leadership style. The implementation of employee engagement strategies focusing on these four dimensions has led to a relatively high level of employee involvement, as evidenced by the results of the Employee Opinion Survey (EOS) conducted in two consecutive periods, 2022 and 2020, achieving scores of 93% and 89%, respectively, indicating a high level of trust from employees towards the organization. The conclusion of this case study highlights that the identified factors influencing employee engagement must be carefully considered by companies and employees to foster effective collaboration, thereby enhancing employee performance, increasing company productivity, and ultimately improving overall organizational performance.