Irish Telecommunications Managing Employee Engagement and the Effects of the Recessionary Period

within the Telecommunications Industry in Ireland

This review concerns the recession and the effects that it had on the telecommunications industry in Ireland; specifically, the effect that it had on Eircom and the end of its business. The literature is examined to determine whether employee engagement was effected during said recession

Recession and Business

The recession affected businesses across the globe but it seemed to have an especially deleterious effect on Ireland. The country had been one of the "most admired" in the world for its fiscal policy and growth, but the recession demonstrated the problems that were lurking underneath the seeming promise (Honohan, 2009). Just as with other countries that faced the fiscal pressure of the recession, that which effected Ireland was caused by layers of issues rather than just a single, more simple cause. One author, in a timeline illustrating the various issues that preceded the recession, wrote:

Growth had been on a secure export-led basis, underpinned by wage restraint

About 2000 a property price and construction bubble took hold

This boom sustained employment and output growth until 2007 despite a loss of wage competitiveness.

The banks fuelled the boom exposing themselves both to funding and solvency pressures.

Successive Governments had bought industrial with tax reductions

Among the triggers for the property bubble was the sharp fall in interest rates following euro membership

Within the euro zone also the disciplines of the market which had traditionally served as warning signs of excess were muted (Honohan, 2009).

Thus, a government that had been fiscally responsible lost the grip it had on the economy because it believed the...

Thus, the government both implemented policy that exacerbated the problems and, in joining the EU, created more issues because there were more layers of bureaucracy hiding any problems (Honohan, 2009).
Specific industries seemed to be more effected than others also, such as telecommunications. The Irish telecommunications market is dominated by Eircom, which was once government owned (Hearne, 2012), which was propped up by individual investment (Hearn, 2012). Unfortunately the firm was one of those hurt worst by the recession due to the fact that it is so large. The telecommunications industry followed Eircom, and due to the fact that other industries were effected meant that, though the telecommunications industry lagged other industries, it has also taken longer for the industry to recover (IBEC, 2011).

Employee Engagement

The second question to be answered concerns employee engagement. The term is based on surveys that the Gallup organization has conducted over the last 25 years (Little & Little, 2006). It is basically concerned with how emotionally involved a particular individual is in the work that they do, the workplace and the company as a whole. Employee engagement has been "related to productivity, profitability, employee retention and customer service at the business unit level" (Little & Little, 2006). The primary reason for this seems to be the satisfaction and emotional engagement that the employee gains from their work experience.

Studies have been conducted meant to inform employers regarding how to achieve engagement from their employees and reasons for its diminution. Since employee engagement produces "commitment to the organization, job ownership and pride, more discretionary effort (time and energy), passion and excitement, commitment to execution and the bottom line"…