Employee Engagement During Ireland's Recession in Telecom

Introduction: Ireland's Recession and Telecommunications

This review concerns the recession and the effects it had on the telecommunications industry in Ireland — specifically, the effect it had on Eircom and the end of its business. The literature is examined to determine whether employee engagement was affected during the recession, and what factors drove any changes observed.

Causes and Consequences of the Irish Recession

The recession affected businesses across the globe, but it seemed to have an especially damaging effect on Ireland. The country had been one of the most admired in the world for its fiscal policy and economic growth, yet the recession revealed the problems that had been lurking beneath the surface (Honohan, 2009). Just as with other countries that faced fiscal pressure during this period, the recession in Ireland was caused by layers of issues rather than any single, simple cause. One author, in a timeline illustrating the various issues that preceded the recession, outlined the following key factors:

Thus, a government that had been fiscally responsible lost its grip on the economy because it believed the strong economy it had created would sustain itself despite the bubble that had formed. The government both implemented policies that exacerbated the problems and, in joining the EU, created additional complications because further layers of bureaucracy obscured emerging warning signs (Honohan, 2009).

Specific industries appeared to be more severely affected than others, and Irish telecommunications was one such sector. The Irish telecommunications market is dominated by Eircom, which was once government-owned (Hearne, 2012) and had been supported by individual investment. Unfortunately, the firm was among those hurt worst by the recession, partly due to its sheer size. The telecommunications industry followed Eircom's trajectory, and because other industries were affected first, the telecommunications sector lagged behind — meaning it has also taken longer to recover (IBEC, 2011).

Understanding Employee Engagement

The second question addressed in this review concerns employee engagement. The term is rooted in surveys that the Gallup organization has conducted over the past 25 years (Little & Little, 2006). It is essentially concerned with how emotionally invested a particular individual is in the work they do, the workplace environment, 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 relationship appears to be the satisfaction and emotional connection that employees derive from their work experience.

Studies have been conducted to inform employers about how to achieve engagement from their employees, as well as the reasons for its decline. 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," it is a highly desirable quality to cultivate — yet it is also known to be elusive (Little & Little, 2006). The importance of employee engagement is further underscored by recent studies pointing to its efficacy as a means for companies to recover from recessions (Lewis, Thomas & Bradley, 2012).

Conclusion

The recession was more difficult for Eircom because the company was already going through a major transition period during which employee engagement and customer service were keys to maintaining business (Hearne, 2012). Though no studies have specifically addressed Eircom, the recession, and employee engagement in combination, it is straightforward to infer from the available research that the effects would have been exacerbated by the challenges Eircom was already facing. Recovering lost engagement would also have been substantially harder under these compounding circumstances.