EMPLOYEE ENGAGEMENT AND DIGITAL TRANSFORMATION: EFFECTS ON ORGANIZATIONAL PERFORMANCE AMID DISRUPTION

Abstract

This study examines employee engagement using a qualitative literature review approach, focusing on the relationship between engagement and organizational performance. Multi-source analysis indicates that employees’ emotional and psychological attachment has a direct impact on performance, innovation, loyalty, and overall institutional effectiveness. Key drivers of employee engagement include adaptive work environments, support for work-life balance, and recognition of creativity, transparent reward systems, and transformational leadership. Furthermore, digitalization, hybrid working arrangements, and participatory practices enhance engagement across generational and cultural differences. Equitable reward management, tolerance, and involvement in strategic decision-making contribute to building more resilient and creative teams. However, work pressure, overload, and unclear career development pathways present significant risks for disengagement, highlighting the need for innovative organizational responses. These findings underscore the strategic importance of evidence-based HRM policies, systematic training programs, and psychological support systems to sustain high levels of engagement and maximize contributions to organizational success. This review also offers practical insights for HR policy development and recommendations for enhancing organizational strategy, providing a constructive reference for future research and practice in employee engagement and performance management.