Employee Engagement and its Impact on Organizational Development: Evidence from Small and Medium Enterprises (SMEs) in Ghana

Abstract

This study evaluated the intricate relationship between employee engagement and organizational development within small and medium enterprises (SMEs) in Ghana. Pertinent literature was reviewed on the influence of employee engagement on organizational development and relationship between employee engagement and organisational development of SMEs in Ghana. The study used quantitative method through cross-sectional survey design. Data were collected from 360 employees across various SMEs in the Eastern Region of Ghana. Structural equation modeling (SEM) was utilized to assess the relationships between employee engagement and organizational development outcomes. Results indicate a significant positive effect of employee engagement on organizational development, suggesting that higher engagement levels correspond to improved organizational performance, innovation, and adaptability. The findings underscore the importance of fostering employee engagement as a strategic imperative for organizational growth and sustainability in the contemporary business landscape.