The Effects of Social Exchange Quality Indicators on Employee Engagement Through Internal Communication

Abstract

Organisations have recently become more aware of the importance of their employees and their contributions to organisational success (Bakker and Schaufeli, 2008). Employee engagement is one of the contributors that has been recognised to have several positive outcomes for organisations. This study was conducted in order to explore how different employee-related concepts affect employee engagement. Its purpose was to determine whether internal communication can influence employee engagement by insuring employees perceive a fulfilled psychological contract, as well as adequate organisational support. A total of 3,457 employees from 26 different organisations completed a survey that measured internal communication satisfaction, employee engagement, level of psychological fulfilment and perceived organisational support. To test the relationship between these variables, mediation analysis was conducted. Two research models with internal communication satisfaction as a mediator between the relationship of psychological contract fulfilment and engagement, and perceived organisational support and engagement were tested. The results show that internal communication satisfaction is a significant mediator of both the relationship of psychological contract fulfilment and engagement, as well as the relationship between perceived organisational support and engagement. This indicates that internal communication could be used in order to manage psychological contract fulfilment and perceived organisational support with the intent of increasing employee engagement, and consequently, overall organisational performance.