Four people, sitting at a wooden table, are engaged in a collaborative discussion using a laptop and tablet. In the background, a bright room with a window and blurred figures conversing.

How to boost employee engagement: Bring Social Exchange Theory into the office

read time - icon

0 min read

Sep 13, 2022

How reciprocation contributes to employee engagement

Reciprocation is more influential in employee engagement than you might think! Social exchange theory (SET) suggests that employees choose their commitment level at work based on their perceived support and community from their employer. 

Work engagement can predict various measures of employee success, including customers’ perceived quality of service, profit, and productivity.1,2 Compared to their disengaged peers, engaged workers communicate effectively and energetically, and have an easier time coping with the demands of their job.

The cost of disengagement: higher resentment and $7 trillion USD

When employees feel disconnected from their duties and employer, they will spread these negative sentiments among their peers, leading to greater resentment among the firm.4 

Beyond contributing to a lack of morale, disengaged employees cost $7.8 trillion USD worldwide in lost productivity.5 And they’re no small population - a staggering 79% of the globe’s workforce is disengaged.5 

When employees feel overwhelmed, fearful, or disconnected from their bosses, they’ll start to feel disengaged.6 Because of these cyclical factors, it can be difficult to boost engagement once it’s already low. 

References

  1. Bakker, A. B., & Demerouti, E. (2007). The Job Demands Resources model: State of the art. Journal of Managerial Psychology, 22(3), 309–328. https://doi.org/10.1108/02683940710733115
  2. Salanova, M., Agut, S., & Peiró, J. M. (2005). Linking organizational resources and work engagement to employee performance and customer loyalty: The mediation of service climate. The Journal of Applied Psychology, 90(6), 1217–1227. https://doi.org/10.1037/0021-9010.90.6.1217
  3. Schaufeli, W., & Bakker, A. (2003). Utrecht work engagement scale: Preliminary manual. Utrecht: Occupational Health Psychology Unit, Utrecht University.
  4. Rasool, S. F., Wang, M., Tang, M., Saeed, A., & Iqbal, J. (2021). How Toxic Workplace Environment Effects the Employee Engagement: The Mediating Role of Organizational Support and Employee Wellbeing. International Journal of Environmental Research and Public Health, 18(5), 2294. https://doi.org/10.3390/ijerph18052294
  5. Pendell, R. (2022, June 14). The World’s $7.8 Trillion Workplace Problem. Gallup.Com. https://www.gallup.com/workplace/393497/world-trillion-workplace-problem.aspx
  6. Lipman, V. (2014, May 19). 6 Clear Reasons Why Employees Are Disengaged. https://www.psychologytoday.com/us/blog/mind-the-manager/201405/6-clear-reasons-why-employees-are-disengaged
  7. Kular, S., Gatenby, M., Rees, C., Soane, E., & Truss, K. (2008). Employee Engagement: A Literature Review. Undefined. https://www.semanticscholar.org/paper/Employee-Engagement%3A-A-Literature-Review-Kular-Gatenby/5df9d365ce99fb4576a1dc26211096f6ddd9708d
  8. Bridgeland, J., Bruce, M., & Hariharan, A. (2013). The Missing Piece: A National Teacher Survey on How Social and Emotional Learning Can Empower Children and Transform Schools. A Report for CASEL. In Civic Enterprises. Civic Enterprises. https://eric.ed.gov/?id=ED558068
  9. Greenberg, M. T., Domitrovich, C. E., Weissberg, R. P., & Durlak, J. A. (2017). Social and Emotional Learning as a Public Health Approach to Education. Future of Children, 27(1), 13–32.
  10. Durlak, J., Domitrovich, C., Weissberg, R., & Gullotta, T. (2016). Handbook of Social and Emotional Learning: Research and Practice. https://www.guilford.com/books/Handbook-of-Social-and-Emotional-Learning/Durlak-Domitrovich-Weissberg-Gullotta/9781462527915/editors
  11. Ewing, M., Men, L. R., & O’Neil, J. (2019). Using Social Media to Engage Employees: Insights from Internal Communication Managers. International Journal of Strategic Communication, 13(2), 110–132. https://doi.org/10.1080/1553118X.2019.1575830
  12. Lemon, L. L., & Palenchar, M. J. (2018). Public relations and zones of engagement: Employees’ lived experiences and the fundamental nature of employee engagement. Public Relations Review. https://doi.org/10.1016/J.PUBREV.2018.01.002
  13. Welch, M. (2011). The evolution of the employee engagement concept: Communication implications. Corporate Communications: An International Journal, 16(4), 328–346. https://doi.org/10.1108/13563281111186968
  14. Ostroff, C., & Kozlowski, S. W. (1992). Organizational socialization as a learning process: The role of information acquisition. Personnel Psychology, 45(4), 849–874. https://doi.org/10.1111/j.1744-6570.1992.tb00971.x
  15. Weber, M. S., & Shi, W. (2016). Enterprise Social Media. In The International Encyclopedia of Organizational Communication (pp. 1–9). John Wiley & Sons, Ltd. https://doi.org/10.1002/9781118955567.wbieoc072
  16. Gonzalez, E., Leidner, D., Riemenschneider, C., & Koch, H. (2013). The impact of internal social media usage on organizational socialization and commitment. International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design, 5, 3969–3986.

About the Authors

Lindsey Turk's portrait

Lindsey Turk

Lindsey Turk is a Summer Content Associate at The Decision Lab. She holds a Master of Professional Studies in Applied Economics and Management from Cornell University and a Bachelor of Arts in Psychology from Boston University. Over the last few years, she’s gained experience in customer service, consulting, research, and communications in various industries. Before The Decision Lab, Lindsey served as a consultant to the US Department of State, working with its international HIV initiative, PEPFAR. Through Cornell, she also worked with a health food company in Kenya to improve access to clean foods and cites this opportunity as what cemented her interest in using behavioral science for good.

A smiling man stands in an office, wearing a dark blazer and black shirt, with plants and glass-walled rooms in the background.

Dr. Sekoul Krastev

Sekoul is a Co-Founder and Managing Director at The Decision Lab. He is a bestselling author of Intention - a book he wrote with Wiley on the mindful application of behavioral science in organizations. A decision scientist with a PhD in Decision Neuroscience from McGill University, Sekoul's work has been featured in peer-reviewed journals and has been presented at conferences around the world. Sekoul previously advised management on innovation and engagement strategy at The Boston Consulting Group as well as on online media strategy at Google. He has a deep interest in the applications of behavioral science to new technology and has published on these topics in places such as the Huffington Post and Strategy & Business.

About us

We are the leading applied research & innovation consultancy

Our insights are leveraged by the most ambitious organizations

Image

I was blown away with their application and translation of behavioral science into practice. They took a very complex ecosystem and created a series of interventions using an innovative mix of the latest research and creative client co-creation. I was so impressed at the final product they created, which was hugely comprehensive despite the large scope of the client being of the world's most far-reaching and best known consumer brands. I'm excited to see what we can create together in the future.

Heather McKee

BEHAVIORAL SCIENTIST

GLOBAL COFFEEHOUSE CHAIN PROJECT

OUR CLIENT SUCCESS

$0M

Annual Revenue Increase

By launching a behavioral science practice at the core of the organization, we helped one of the largest insurers in North America realize $30M increase in annual revenue.

0%

Increase in Monthly Users

By redesigning North America's first national digital platform for mental health, we achieved a 52% lift in monthly users and an 83% improvement on clinical assessment.

0%

Reduction In Design Time

By designing a new process and getting buy-in from the C-Suite team, we helped one of the largest smartphone manufacturers in the world reduce software design time by 75%.

0%

Reduction in Client Drop-Off

By implementing targeted nudges based on proactive interventions, we reduced drop-off rates for 450,000 clients belonging to USA's oldest debt consolidation organizations by 46%

Read Next

A group of people in a modern meeting room, some seated and working at a large table with laptops and cameras, while others stand and converse. The atmosphere is casual, with natural light filtering through large windows in the background.
Insight

Why Teams Make Bad Decisions

Sometimes, the best way to avoid group decision-making failures is not to make decisions as a group at all.

Notes illustration

Eager to learn about how behavioral science can help your organization?