IMPACT OF EMPLOYEE ENGAGEMENT ON JOB PERFORMANCE OF EXECUTIVE LEVEL EMPLOYEES IN INSURANCE COMPANIES IN KURUNEGALA DISTRICT

Abstract

This research investigated the impact of employee engagement and its dimensions (vigor, dedication, and absorption) on job performance among executive-level employees in the insurance industry of Sri Lanka's Kurunegala district. The study aimed to provide insights into the engagement-performance relationship within the context of a developing economy's insurance sector. The study employed a quantitative cross sectional survey design. Data were collected from a sample of 120 insurance executives using stratified random sampling to ensure representation across different insurance companies in the district. Employee engagement was measured using the work engagement scale, while job performance was assessed using an adapted version of the individual work performance questionnaire. The research utilized multiple regression analysis to test the hypothesized relationships between engagement dimensions and job performance. The results demonstrated a significant positive impact of overall employee engagement on job performance (P : 0.600, p < 0.001). Further analysis revealed that all three engagement dimensions were significant predictors of job performance, vigor (P : 0.266, p < 0.01), dedication (P : 0.271, P ( 0.01), and absorption (F :0.224, p < 0.05). These findings suggest that executives who exhibit higher levels of vigor, dedication, and absorption in their work tend to perform better in their roles. The study's findings have important implications for human resource management practices in the insurance industry. They underscore the critical role of employee engagement in driving performance outcomes among executives. Insurance companies should focus on developing strategies to enhance all three dimensions of engagement to improve organizational performance. Future research could employ longitudinal designs to establish causality and explore how the relationship evolves over time. Additionally, investigating the impact of contextual factors such as organizational culture and leadership styles on the engagement-performance link could provide a more comprehensive understanding of these dynamics in the insurance sector.