Enhancing employee engagement for small and medium enterprises in Taiwan

Employee engagement is crucial to the success of small-and-medium-enterprises (SMEs). As SMEs are the major GDP contributors in Taiwan, both policy makers and scholars have called further research to evaluate the significance of employee engagement in order to promote business prosperity. Following this logic, the current research has examined how employee engagement is interpreted by Taiwan's SMEs and discussed what could be done to improve employee engagement. Specifically, a qualitative approach is employed for data collection, and both managers and subordinates from five main types of SMEs in Taiwan are recruited for interviews. These types include: Electronics Information, Metal transportation, Machinery Equipment, Food Manufacturing, and Textile. Interview findings have shown that the majority of employees regard employee engagement as a psychological commitment and attachment to their organizations. Based on the views of interviewees, both monetary reward (e.g. bonus) and non-monetary rewards (e.g. performance recognition) generate salient impact on engagement enhancement, i.e., monetary and non-monetary rewards have jointly facilitated employee to make stronger commitment towards organizations and organizational goals. Research findings have also supported the proposition that employees with stronger engagement at work are more likely to have higher level of organizational commitment, contributing to the organizational productivity. The current research is the first of its kind to investigate how employee engagement interacts with organizational commitment and productivity in Taiwan SMEs, providing empirical evidence to decipher the imperativeness of employee engagement enhancement. Research findings have first contributed to the engagement literature, and the implication of findings is also insightful to SME managers and policymakers in their personnel management