Impact of Psychological Conditions on Employee Engagement: Study Based on Regional Branches of ABC Insurance Company at Matale District

Abstract

The concept of employee engagement has become increasingly important in the literature. Despite increased interest, there is still a scarcity of studies on employee engagement. Alternatively, employees in the insurance industry are required to work under tough conditions and in high-pressure scenarios. Past three-year records of ABC insurance company recorded significant increase in turnover rates and disengaged employees. The purpose of the current research was to study the impact of psychological conditions on employee engagement at regional branches of ABC insurance company at Matale district. In this study, psychological meaningfulness, safety, and availability were examined as dimensions of psychological conditions. Quantitative research methods were employed, and data were collected through a questionnaire. The sample size of 103 employees from three branches of ABC Insurance companies in the Matale district and the researcher utilized the simple random sampling technique. Data analysis was performed using SPSS 23.0 Package and MS Excel. Based on the findings of the study, a significant positive relationship was found between psychological conditions and employee engagement, indicating that psychological conditions had a significant impact on employee engagement with the greatest effect observed in the dimension of meaningfulness. Consequently, managers should take all three predicting psychological conditions into account and use a systematic approach. Accordingly, leading roles organizations should focus on job design to fulfil the work tasks of importance and values.