THE EFFECTS OF EMPLOYEE COMMUNICATION AND ENGAGEMENT ON ORGANISATIONAL PERFORMANCE: A CONCEPTUAL STUDY

Abstract

This paper aims to develop an integrative conceptual framework for studying employee communication and engagement effectiveness on organisational performance. Although research indicates employee communication and engagement play an essential role in organisational performance, there is limited empirical research assessing their interdependent relationships on a financial and non-financial performance basis. This paper extensively reviewed the literature on employee communication and engagement related to organisational performance, financially and non-financially, during stable economic situations and crises such as the COVID-19 pandemic. Drawing from the Social Exchange theory, this paper theoretically provides the basis for a thorough evaluation of employee communication and engagement’s impact on organisational success. This paper identifies employee communication attributes of two-way, transparency, and consistency that influence employees’ psychological, intellectual, and physical engagement may affect the organisational performance’s financial and non-financial measures. The integrative connections showing engagement mediates the relationship between employee communication and organisational performance tend to contribute more to increasing organisational values. Practically, this study’s conceptual model may benefit communicators in identifying the essential directions for developing and executing effective internal communication strategies to keep the organisation moving forward and ensure long-term growth. The originality of this study is that it improvises the conceptualisation of employee communication effectiveness and organisational performance. It introduces an integrative conceptual model of employee communication, engagement and organisational performance constructs that may explain how to better predict organisational outcomes, both financially and non-financially, in the age of pandemics or non-pandemics.