Developing a multiplicative operationalization of employee engagement for driving performance at the work-unit level

Purpose This study sets out to clarify the conceptual, operationalization and level concerns of the practitioner-based concept of employee engagement (EE). We propose and test a multiplicative operationalization of EE as a more actionable, two-dimensional construct (affective commitment and top leadership direction) at the collective work-unit level. Further, we also substantiate the EE link to work-unit performance. Design/methodology/approach This study employs a quantitative multi-level research design. The main hypotheses are tested on a sample of 251 work units from a multinational organization, covering 21,933 employees. Findings The proposed two-dimensional EE operationalization is statistically supported at the individual and collective work-unit levels of analysis. The study reveals that the work-unit multiplicative engagement operationalization outperforms the standard additive one (i.e. lowest AIC) and has a significant positive relationship with work-unit performance. Originality/value This study is the first to apply the multiplicative EE operationalization. It uncovers that only work units with equal levels (preferably the highest scoring) of collective affective commitment and top leadership direction lead to improved (optimal) performance. This provides more specific insight for the subsequent managerial implications.