The Importance of Employee Engagement and Retention

Introduction

Human resource management plays one of the most critical roles in the efficiency and productivity of companies. This is supported by the fact that not only the results of its activities but also the general situation depends on the employees of the organization. The negative consequences of improper personnel management are high layoffs, resistance, poor relations between employees, and low-key productivity indicators. Therefore, the study of this area is critical for companies as it contributes to employee engagement and retention. This report will be based on petrol and diesel companies and their human resource management. The research question of this study investigates what impact human resource management has on employee engagement and retention. The main objectives of the research are gaining an understanding of the concept of human resource management, how it affects employee retention and satisfaction, and providing recommendations for improving the work of managers in petrol and gas companies.

Therefore, the structure of this research work has, first of all, a justification for analyzing and studying the topic of the impact of human resource management. Then, the work provides information about the objects and the research question, which will serve as a guide for the entire examination. The next section of the study provides a literary review with the necessary data to deepen knowledge of the chosen topic. Then there is a justification for the use of methodology and tools for collecting and analyzing information, after which all knowledge will be grouped in the research and findings section. In the end, after the conclusion, the scientific paper provides recommendations that may be useful for the modernization of human resource management in petrol and diesel companies.

Methodology

The methodology is especially valuable when conducting research. It defines the methods and tools that have been used in the course of scientific work. Thus, this work is a qualitative study. This is because examination is based on the collection and analysis of information obtained from secondary sources (Snyder, 2019). The main advantages of this approach are the acquisition of evidence-based knowledge, which cannot be questioned since researchers previously tested and substantiated them. Another positive aspect of using qualitative research is that it can provide information that relates to a specific area. This is valuable, as this work examines the petrol and gas industry. The main disadvantages of using a qualitative approach are the time cost when searching for the necessary information and the irrelevance of data. In other words, researchers may be limited by the acquired knowledge, as they may require updating.

The main research question is the assessment of the impact that human resource management has on the involvement and satisfaction of workers in the gas pipe of the fuel industry. The main objects of research are the study of human resource management and how it is reflected in the field of petrol and gas. Therefore, the basis of this report was a secondary research. It was conducted to search for secondary resources on the topic of human resource management. The advantage of this tool for conducting scientific work is the acquisition of the necessary information, opportunity to maximize data utility as well as possible limitations that accompany its use. Moreover, it helps to investigate the issue of research more clearly and thoughtfully and come to satisfactory results.

Literature review

Further, this work highlighted literary review as the primary way to collect and analyze the necessary information. The advantages of this tool listed in the previous section have become full-fledged justifications for its use. The search for secondary sources is based on such words and phrases as “human resources”, “human resource management”, “employee retention”, “burnout”, “dismissal”, workplace environment”, and others that can be directly related to the positive effects of the approach based on the accounting of the organization’s personnel. In addition, data from the petrol and gas industries and their treatment of human resources were analyzed.

Human resource management is a crucial concern of any organization, regardless of the field of employment. Therefore, first of all, it is necessary to consider the importance of this concept for maintaining the efficiency of companies and retaining employees. Sources define Human Resource Management (HRM) as “the management of work and people towards desired ends, is a fundamental activity in any organization in which human beings are employed” (Armstrong and Taylor, 2020, p. 3) among the activities that HRM includes hiring employees who can make a significant contribution to the organization and ensuring a stable and healthy workplace can be highlighted. Thus, the main goal of this approach is to provide comfortable and satisfactory conditions for employees, which will ensure the most extraordinary productivity and competitiveness of the company.

Next, it is necessary to highlight several advantages that proper human resource management brings. One of them is the acquisition of talented, qualified workers (Bailey et al., 2018; Collings, Wood and Szamosi, 2018; Greer, 2021). This is due to the well-established and structured recruitment process that HR managers are engaged in. By researching the necessary information and past experience, they form a policy that will help exclude unsuitable specialists and retain talented ones (Armstrong, 2021; Banfield, Kay and Royles, 2018). This approach ensures the coherence and productivity of the organization, which helps it achieve a high level of competitiveness and success (Ahmed and Siddiqui, 2020, p. 33). Another advantage that the concept under study represents is the provision of motivation for employees due to awareness of the importance of the final goal and sharing a shared vision of ways to achieve it.

At the present stage of the development of society, a unique role is played by the requests of customers and market trends. Over the past decades, technologies and innovations have gained a special role in this aspect, which are able to modernize the processes of functioning of organizations significantly. These changes have not bypassed the sphere of human resource management, which largely depends on the requirements of both consumers and employees (Brewster and Hegewisch, 2017). Moreover, as the literature shows, the technologization of many aspects of work contributed to their opening to the global market (Plaskoff, 2017). In HRM, innovations significantly facilitate the process of conducting analytical studies that relate to identifying the level of staff satisfaction and possible negative indicators that require changes.

Based on the analyzed literature, a unique role in the proper management of human resources management is the constant acquisition and updating of knowledge about this area. Consequently, the work of Papa et al. (2018) emphasizes that this process helps to bring innovation to the work of the organization and improve HRM practices in the context of employee retention. Another advantage of acquiring knowledge from internal and external sources is gaining competitiveness due to a high level of awareness (Papa et al., 2018). This circumstance includes not only the availability of information about the trends of the market within which the company operates but also the expansion of knowledge about improving the working conditions of personnel (Guest, 2017). Moreover, the acquisition of knowledge provides the company with flexibility in the ability to respond to changing factors and the ability to find quick, successful solutions to any kind of problem.

In addition to providing positive indicators, human resource management can provide assistance in solving many problems for organizations. This is since “HRM controls all decisions made by the management of a firm which then affects the relationship between the firm and its employees” (Papa et al., 2018, p. 5). Among the issues with which it helps to combat, there is a limitation of the frequency of professional burnout, poor relationships among employees, discrimination and many others that may arise in the workplace (Elrehail et al., 2019). This is because the essence of the work of companies is represented by human interactions, ensuring the smoothness and stability which is critical for business.

It is also necessary to pay more detailed attention to such a concept as employee engagement. It primarily affects the retention of specialists in the workplace and the desire to work for the benefit of the company. Thus, this phenomenon implies the initiative and dedication shown in relation to the work and the functions performed on it. In other words, employee engagement represents individuals who care not only about receiving financial compensation but also work to improve the company’s performance and create a stable and productive future. Managers should highly appreciate employees who show such interest in the activities of organizations since employee engagement is often an aspect that requires an investment of effort and gradual construction.

Moreover, communication with the staff about the problems and positive aspects of functioning in the organization is essential for maintaining employee engagement. This will allow not only to convey the values and mission of the company but also to understand the basic needs that the specialists are experiencing. They also often display a more significant commitment to a company’s values and goals (Mone and London, 2018). Most of the phenomenon under study is played by emotional attachment, which can be achieved with the help of various kinds of incentives and motivation of employees. When building such a connection, employees will feel a great responsibility to managers, as they will want to make positive changes. The complexity of this aspect is manifested in finding ways to measure the indicator of engagement (Mone and London, 2018). It is possible to develop a survey, but this method may not always provide wholly correct and honest data.

Henceforth, there are several advantages that employee engagement provides, in addition to retaining staff in the organization. Specialists working for the organization know precisely their responsibilities and the result to be achieved. In addition, the level of loyalty from employees increases, and the overall climate within the company improves. Employees are highly motivated and able to carry out their activities with a satisfactory level of efficiency.

The next aspect of this research work is the discussion of human resource management within the framework of the petrol and gas industry. The need to analyze this field of activity is caused by several factors. Henceforth, the selected areas differ from all others in that they imply work in rather unique and challenging circumstances. Among them, sources distinguish remote locations of production facilities, non-standard weather conditions and features of transportation and general production of products (Hagen et al., 2017). These circumstances contribute to the availability of a limited number of specialists who are ready to work in such conditions. Thus, in the field of petrol and gas production, there is a particular need to develop successful and effective strategies for human resource management.

Sustainable or “green” personnel management (SHRM) has become of particular importance for companies that operate in the field of petrol and gas. The emergence of this trend was due to a change in preferences in society. Thus, at the moment, a large number of people are expressing concern about preserving the environment and reducing the harmful effects of production (Chams and García-Blandón, 2019: Tooranloo, Azadi and Sayyahpoor, 2017). Another source notes that such factors as “consumer needs, consumer boycotts, global environmental standards, dynamic preferences” play a role and influence business restructuring (Obeidat, Bakri and Elbanna, 2020, p. 372). This challenges company managers to develop sustainable strategies that relate to the activities of organizations and the activities of personnel.

Additionally, sustainable HRM becomes a promising alternative for companies that earn from the production of petrol and gas. The main difficulty that may arise is the unification of human resource management and sustainability concepts. In addition to improving the characteristics of the workplace and increasing the satisfaction of employees, SHRM also focuses on the results and impact factors of production activities (Pellegrini, Rizzi and Frey, 2018). Among the main advantages of this approach to production practice is the reduction of company costs while having employee retention. This is due to a thoughtful approach to the use of resources such as for example, electricity, and water, which reduce unnecessary financial expenses (Macke and Genari, 2019). By looking specifically at employees, SHRM promotes awareness of the value of sustainability, as well as improving the well-being of staff (Sharma et al., 2022). This is especially important for the petrol and gas industry, where specialists can be negatively affected by production. One of the significant advantages of sustainable human resource management is to increase respectability and loyalty on the part of the public by taking into account concerns about the contribution of production to the environment.

As a result of the literary analysis, it was definitely found that there are quite a large number of sources about SHRM. Therefore, one of the articles emphasizes that “when the organization promotes sustainability, employees are more likely to internalize and make sense of sustainability, which reflects in a higher commitment to adopt it” (Pellegrini et al., 2018, p. 1221). This source highlights a unique role for managers and managers of the organization in finding a sustainable approach to the regulation and monitoring of personnel. It is these positions that help to spread information and form the direction of activity within the organization. Moreover, it is noted that the change of emphasis on environmental performance has a positive effect not only on the reputation of the organization but also on the internal state of the company.

Research and Findings

Further, based on the literature under study, the scientific paper can proceed to generalize the main findings that are important for answering the research question. It is worth recalling that it consisted in studying how human resource management affects employee retention and engagement. These two concepts have one of the most significant and valuable values for the organization since the performance of employees directly affects productivity and productivity.

One of the advantages that the concepts under study provide is ensuring the flexibility of the company, which is especially valuable in the face of frequently changing external and internal factors. For more practical reasons, employee retention minimizes the time and financial costs that may be required when specialists are dismissed (Aguenza and Som, 2018, p.89). This is because finding, interviewing and training new employees is a particular challenge for the petrol and gas industry due to the circumstances previously investigated. Moreover, the introduction of sustainable human resource management also limits the choice of candidates.

Further, HRM policies and strategies can significantly facilitate the process of finding and retaining talented employees. In addition, engagement also becomes an aspect that can be quickly developed when using the right approach in working with the organization’s personnel (Kurdi and Alshurideh, 2020). Thus, the critical importance of HRM concepts was determined during the literary review. Therefore, “for example, the oil and gas industry has been under pressure to address environmental issues such as climate change” (Obeidat, Al Bakri and Elbanna, 2020, p. 2). This circumstance played a role in the reorganization of the structures, operational processes and practices of companies. They imply taking into account the impact of the production activities of petrol and gas, which may have adverse outcomes for the environment. Moreover, the modernization of HRM in companies that occupy a place in this market is due to the limited number of qualified employees due to difficult working conditions.

Human resource management provides HR professionals with the necessary knowledge and skills to help increase employee retention and engagement. Fig. 1 provides data on the level of these indicators in the field of the production of petrol and gas. This chart shows that the industry shows quite good results in keeping specialists in the workplace. However, this does not negate the need to modernize this field of activity due to the constantly changing demands and preferences of society and the needs and needs of employees.

Henceforth, strategic management of human resources plays an important role, taking into account the principles of sustainability. Such interaction will provide a competitive advantage while not losing attention to the welfare of the organization’s staff (Stewart and Brown, 2019). Of particular importance in this process is the use of new technologies that can accelerate and improve the work of the analytical department (Bauer et al., 2018; Fenech, Baguant and Ivanov, 2019). This will help to analyze not only the personal data of companies and past experience of working with personnel but also to study the entire industry for effectiveness in the framework of staff retention and involvement.

The next aspect that has often been mentioned in the studied literature is the use of sustainable or “green’ HRM. For the findings of this work, and it has value since it correlates with the demands of modern society. Thus, sources note that “a key schema now is that a company’s outcome is strongly impacted by environmental concerns” (Obeidat, Al Bakri and Elbanna, 2020, p. 372). It is known that companies must be transparent in their goals and objectives, which contributes to building loyalty and trust between managers and staff. In the same way, sharing and spreading knowledge about the importance of preserving the environment and minimizing the negative impact of production will have a positive effect on retention and engagement (Mone and London, 2018). This is due to the fact that employees will have a clear idea of the value of their activities and will work for one result in the company.

Regarding sustainable human resource management, it is worth noting that some companies are already paying attention to this approach. Hence, Fig.2 provides the distribution of SHRM among various industries where the production of gas has a reasonably good coefficient. Thus, having analyzed all the advantages of the approach under study, we can say that human resource management can contribute to the retention and involvement of employees in the field of petrol and gas companies.

In the process of ensuring the retention of employees in the workplace, managers play a leading role as they are the link between the leaders of the organization and the staff. These specialists are responsible for studying the dynamics and trends of the workplace and developing and providing strategies to retain employees in their positions. Hence, one of the most common measures is financial remuneration for the work done. However, despite providing a certain level of motivation, it does not have a lasting effect and quickly loses its effect (Al-Madi et al., 2017; Nankervis et al., 2019). Therefore, companies should be able to establish trusting and strong relationships with employees immaterially. This can be achieved by providing training, opportunities for promotion and improving the working conditions of the team (Mahapatro, 2022; Pattanayak, 2020). Although these factors may require financial costs, they are not as large as financial incentives. At the same time, they develop commitment and will have a more significant impact on the preservation of valuable specialists for the petrol and gas industry.

Conclusions

In conclusion, this scientific research work aimed to study the issue of the impact of human resource management on employee retention and engagement. The primary method of collecting and analyzing information has become secondary research. During the search for sources, the most useful and relevant ones were identified, which provided information not only about HRM but also about sustainable HRM. The study of this type of employee management in organizations is valuable since the central sphere of application of these practices has become the sphere of production of petrol and gas.

The field of human activity selected for analysis and provision of recommendations is of particular interest for research. This is because this industry has several negative factors that can hinder the retention, involvement and hiring of employees. Among them, the remoteness of production locations and sometimes not utterly satisfactory working conditions stand out. It is these factors that determine the need to develop recommendations that will help improve the performance of petrol and gas organizations by improving the working conditions of staff and their level of satisfaction. In addition, HRM practices are valuable because they help to reduce the financial and time costs that are necessary to find new specialists in case of dismissal.

Therefore, the report answers the research question that human resource management has a positive influence on the engagement and satisfaction of workers in the gas and petrol industry. Moreover, the main objects of the paper were thoroughly examined and the findings complemented those reported in the literature. The scientific paper provides the necessary recommendations that can be especially useful for staff retention and involvement. At the same time, the trends in the development of modern society, which are one of vital external factors, will be taken into account. The advantages of implementing and improving HRM strategies given earlier are the justification for using them in the process of company work.

Recommendations

The last section of this research paper provides recommendations for improving human resource management in petrol and gas companies based on the literature studied. Their inclusion in the processes of organizations is important because, despite the production and technological advancements, people will remain the basis for business productivity and efficiency (Hagen et al., 2017). At all levels, the human resource is the most valuable, and violation of its working conditions can lead to severe consequences. Thus, the company may suffer financial expenses and loss of competitive position in the market, which will affect the unwillingness of qualified and talented specialists to work in it.

Thus, the first aspect that requires becoming important for prioritizing becomes ways of development for employees. This factor includes taking into account the role that individuals perform and the context of their activities. In other words, the company should provide staff with an opportunity for career and professional growth (Bratton et al., 2021). This is because when detained for too long in one place or when performing the same functions for a long time, employees may experience professional burnout. This problem can seriously affect the effectiveness of the organization and, in critical cases, lead to dismissal (Pucik, Evans and Björkman, 2017; Stone, Cox and Gavin, 2020). Thus, as already mentioned in the literary review, managers should be transparent about what heights individuals can achieve by working in the company.

The discussed aspect also implies a change in the policy of the functioning of organizations as a whole. Henceforth, the company’s managers should focus their attention on continuous improvement, which will help to achieve excellent results and gain a competitive position. At the same time, it is worth gravitating toward employees since they have an impact on the formation of the company in the market.

The following recommendation, which is of particular importance in the framework of modern technology and innovation development, is the company’s analytics. This step will allow value creation and high-value applications (Huselid, 2018; Lengnick-Hall, Neely, and Stone, 2018). Analytics in the field of human resource management involves the study of data that directly concerns the personnel of the organization. It is possible to analyze key productivity indicators, show initiative, and participate in training among such information. Furthermore, it is possible to conduct a study of the past experience of implementing HRM strategies and the results they have given in order to gain an understanding of which approaches are not suitable for this company. In addition to all of the above, analytical activity also includes conducting surveys and studies that provide the most valuable information for HRM – the direct opinion of employees (Margherita, 2022; Singh and El-Kassar, 2019). It is necessary for a more productive strategy that would take into account all the wishes of the staff. Thus, hiring employees who specialize in human resource analytics will help identify areas for improving the functioning of the company.

The third recommendation is to attract specialists in the field of HRM and sustainable HRM to develop a recruitment policy. This step will facilitate the recruitment of the most competent, qualified and talented specialists. However, in relation to the petrol and gas industry, this aspect should take into account a limited number of such candidates due to the unique working conditions and narrow qualifications.

The next recommendation is to create conditions that will satisfy the company’s employees and establish a healthy corporate culture. This is critically important for petrol and gas companies, as they already have pretty tricky working conditions. The staff should have the desire and motivation to work for the organization and benefit (Bawa, 2017; Thokozani and Maseko, 2017). However, if such phenomena as discrimination, harassment, neglect and disputes prevail in the workplace, this can lead to a staff drain and a decrease in key indicators of business productivity. Therefore, HRM management will help to establish and root inclusion and diversity in the workplace, which will completely exclude the occurrence of the negative aspects listed earlier.

Conclusion

After all, organizations producing oil and gas products should show an interest in sustainable human resource management. This concept is concerned with the contribution that such organizations can make to the environment and the development of policies to prevent them (Tooranloo, Azadi and Sayyahpoor, 2017). Thus, a business can have two advantages at once, becoming eco-friendly and sustainable and providing improved care for the welfare of staff. Moreover, it helps to meet the wishes of society and stakeholders, which will increase loyalty and attract more positive attention. These circumstances will also contribute to the retention and involvement of employees in the workplace.

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