RESEARCH REPORT

THE IMPACT OF EMPLOYEE ENGAGEMENT ON

EMPLOYEE PERFORMANCE SAMI
PHARMACUITAL (PVT) LTD.

HUMAN RESOURCE MANAGEMENT

SUBMITED TO
DR. MUNAWAR HUSSAIN PAHI

SUBMITED BY
o NAVEED AHMED MUGHAL (11509)
o AYAZ MEHMOOD (65221)
o SALMAN (56101)
o HAMMAD KHAN (65221)
o M. KASHAN (56101)

2023
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 ACKNOWLEDGEMENT
The report in hand is not only a hard copy of activities during the working of HRM Report, other it is
a container of many soft feelings of gratitude, responsibility and Affection that were having during the
course. For this favor, all acclamation to ALLAH, WHO has empowered and enabled me to
accomplish the research project successfully and helps in every problem during the project report.

The development of this thesis depended on the effort, support and guidance of a number of people
whom I should thank.

I am grateful to my supervisor Dr. Munawar Hussain for his kind support, guidance and constructive
criticisms and for their comments and suggestions during the research report defense.

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 TABLE OF CONTENTS
CHAPTER NO. 01...............................................................................................................................1
INTRODUCTION...............................................................................................................................1
1.1 BACKGROUND OF THE STUDY:.........................................................................................1
1.2 PROBLEM STATEMENT:.......................................................................................................1
1.3 RESEARCH QUESTION:........................................................................................................1
1.4 RESEARCH OBJECTIVE:......................................................................................................1
1.4.1 Explore the Dimensions of Employee Engagement:.........................................................1
1.4.2 Investigate the Impact on Employee Performance:.........................................................1
1.4.3 Identify Factors Influencing Employee Engagement:......................................................1
1.4.4 Examine Organizational Culture and Climate:................................................................1
1.4.5 Propose Strategies for Enhancing Employee Engagement:.............................................1
1.5 SCOPE OF STUDY:..................................................................................................................1
1.6 SIGNIFICANCE:......................................................................................................................1
1.7 HISTORY OF SAMI PHARMACEUTICAL (PVT) LTD.:....................................................1
CHAPTER NO. 02...............................................................................................................................1
LITERATURE REVIEW:..................................................................................................................1
2.1 LITERATURE OF STUDY:......................................................................................................1
2.1.1 EMPLOYEE PERFORMANCE:..........................................................................................1
2.1.2 CAREER DEVELOPMENT:................................................................................................1
2.1.2.1 CAREER COUNSELING:..............................................................................................1
2.1.2.2 Career Planning:..............................................................................................................1
2.1.2.3 Training:...........................................................................................................................1
2.1.2.4 Career Development and Employee Performance:.......................................................1
2.1.3 SUPERVISORY SUPPORT:..................................................................................................1
2.1.3.1 COMMUNICATION:......................................................................................................1
2.1.3.2 Empowerment:.................................................................................................................1
2.1.3.3 Feedback:.........................................................................................................................1
2.1.4 REWARDS:.............................................................................................................................1
2.1.4.1 Financial Rewards:..........................................................................................................1
2.4.1.2 Non-Financial Rewards:..................................................................................................1
2.2 Develop hypothesis:...................................................................................................................1
CHAPTER NO: 03..............................................................................................................................1
METHODOLOGY..............................................................................................................................1
3.1: INTRODUCTION:...................................................................................................................1
3.2: RESEARCH DESIGN:............................................................................................................1
3.10 Conclusion:...............................................................................................................................1
3.11 Recommendations:...................................................................................................................1
3.12 References.................................................................................................................................1

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CHAPTER NO. 01

INTRODUCTION
1.1 BACKGROUND OF THE STUDY:
Employee engagement has emerged as a crucial aspect of organizational success and
performance in recent years. It refers to the emotional and psychological investment that
employees have in their work and their organization. Engaged employees are committed,
motivated, and enthusiastic about their job, which leads to higher levels of productivity, better
performance, and increased loyalty.

Organizations with highly engaged employees tend to experience numerous benefits,

including improved employee retention, reduced absenteeism, higher customer satisfaction,
and enhanced financial performance. Engaged employees are more likely to go above and
beyond their job requirements, contribute innovative ideas, and actively participate in
achieving organizational goals.

Employee engagement has become an emergent topic in the profitability of an organization. The first
study was conducted by William Kahn in 1990. "Psychological Conditions of Personal Engagement
and Disengagement at Work." the research was conducted on engagement and disengagement factors
of employees. Kalin originates the ideas that "three states that are linked with engagement or
disengagement at job meaningfulness, safety, and availability". He found that usually three basic
questions are considered in performing job roles:

Question No. 1 - How much meaningful and how much I can do?

Question No. 2 - Is it safe to do?

Question No. 3 - How much am I available to perform job?

1.2 PROBLEM STATEMENT:

Problem Statement: The lack of employee engagement negatively impacts employee performance and
overall organizational productivity.

Rewards

Career Supervisory
Development Support

Employee
Performance

Figure 1.1

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1.3 RESEARCH QUESTION:
The research study is designed to answer the following research questions.

Q.I Career development and its impact on employee performance.

Q.2 Rewards and their Impact on employee performance.

Q.3 Supervisory Support and Impact on employee performance.

1.4 RESEARCH OBJECTIVE:

The objective of this study is to comprehensively investigate the relationship between employee
engagement and employee performance, and to identify the specific factors and mechanisms through
which employee engagement influences employee performance. The study aims to provide a detailed
understanding of how organizations can enhance employee engagement to optimize employee
performance and achieve sustainable organizational success.

1.4.1 EXPLORE THE DIMENSIONS OF EMPLOYEE ENGAGEMENT:

The study seeks to explore the multidimensional nature of employee engagement by examining
various aspects, such as job satisfaction, organizational commitment, job involvement, intrinsic
motivation, and emotional attachment. It aims to understand how these dimensions interact and
contribute to overall employee engagement. By analyzing these dimensions, the study can identify
which aspects of engagement have the most significant impact on employee performance.

1.4.2 INVESTIGATE THE IMPACT ON EMPLOYEE PERFORMANCE:

The study aims to assess the direct and indirect effects of employee engagement on employee
performance. It involves measuring performance outcomes, such as task performance, creativity,
innovation, customer satisfaction, and teamwork, to understand how employee engagement influences
these key indicators. Additionally, the study may explore the mediating role of factors like job
satisfaction, organizational commitment, and motivation in the relationship between engagement and
performance.

1.4.3 IDENTIFY FACTORS INFLUENCING EMPLOYEE ENGAGEMENT:

The study aims to identify the factors that influence employee engagement within the organizational
context. It involves examining factors such as leadership style, communication channels,
organizational support, career development opportunities, work-life balance, and employee
recognition and rewards. By identifying these factors, the study can provide insights into which
organizational practices and interventions are most effective in fostering employee engagement.

1.4.4 EXAMINE ORGANIZATIONAL CULTURE AND CLIMATE:

The study aims to explore the influence of organizational culture and climate on employee
engagement and performance. It involves analyzing the values, norms, and behaviors that shape the
work environment and impact engagement levels. By assessing the alignment between organizational
culture, employee engagement, and performance outcomes, the study can provide recommendations
for organizations to cultivate a supportive and engaging culture.

1.4.5 PROPOSE STRATEGIES FOR ENHANCING EMPLOYEE ENGAGEMENT:

Based on the findings, the study aims to propose practical strategies and interventions for
organizations to enhance employee engagement and, consequently, improve employee performance.
These strategies may include leadership development programs, communication improvement
initiatives, performance management systems, employee recognition programs, training and
development opportunities, and work-life balance initiatives. The study seeks to provide evidence-
based recommendations that organizations can implement to create an engaged workforce.

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By addressing these research objectives, the study aims to contribute to the existing literature on
employee engagement and performance, providing valuable insights for organizations to develop
targeted interventions and strategies that positively impact employee performance and overall
organizational success.

1.5 SCOPE OF STUDY:

The scope of the study on employee engagement and its impact on employee performance
encompasses investigating the measurement of employee engagement, exploring the factors
influencing engagement, examining the relationship between engagement and various performance
metrics, analyzing the role of organizational culture and climate, proposing effective intervention
strategies, considering industry and organizational context, and exploring cross-cultural perspectives.
The study aims to provide a comprehensive understanding of how employee engagement influences
performance outcomes, identify key factors that drive engagement, and offer practical
recommendations for organizations to enhance engagement and improve overall employee
performance.

This study will be a good addition to the literature and give an understanding of employee
engagement factors that have a significant impact on employee performance. Due to time constraints,
this study will be done on limited variables and on one sector i.e., the pharmaceutical industry in
Karachi, and the organization selected is Sami Pharmacuiticals (Pvt) Ltd.

1.6 SIGNIFICANCE:
This study will present clear dimensions for human resource management to cope up with the issues
regarding lack of commitment, absenteeism, and turnover rate. Managers will promote to fill the gap
in communication between an employer and the employee, make sure that employees have a clear
understanding of their work, provide the resources necessary for the job, also plan to give the training
to enhance their knowledge and skills program a feedback system on which rewarded the good
performers either financial or non-financial rewards. These plans will make the working environment
more conducive and develop the relationship of an employee with the organization which promotes
the engagement of an employee and the effect on employee performance and organization
productivity.

1.7 HISTORY OF SAMI PHARMACEUTICAL (PVT) LTD.:

SAMI Pharmaceuticals was formed in 1971, and operating in pharma products from last 51
years. It is one of the fastest growing pharmaceutical companies in Pakistan. The success is
driven by the hard work of our employees, who are among the best people in the industry.
They strive hard to train and develop the best talent, and ensure that our growth as a company
is correlated with our employees’ growth as individuals. The specialty are Pharmaceuticals,
Leading Pharma in Pakistan, Biotech, Medicine, Novidat, Oxidil, Microbiology, Chemical,
and Cares for Humanity, and Employee Value. It has more than 4000 employees. The revenue
is 18 million Dollars.

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 CHAPTER NO. 02
LITERATURE REVIEW:
2.1 LITERATURE OF STUDY:
Employee engagement and its impact on employee performance have been extensively studied in the
organizational literature. Numerous studies have examined the relationship between employee
engagement and various dimensions of employee performance, providing valuable insights into the
underlying mechanisms and factors influencing this relationship.

Career development opportunities, such as training, mentoring, and growth prospects, have been
identified as important drivers of engagement and performance. When employees perceive their
organization as investing in their professional development, they are more likely to be engaged and
exhibit higher levels of performance.

2.1.1 EMPLOYEE PERFORMANCE:

Performance is the fulfillment of job and the achievement of targets (Patrick & Kumar. 2011)
Employee Performance plays a crucial role in the growth of an organization. (Bari, Arif, & Shoaib,
2013).

"Organizations that create the conditions that support, enhance and sustain employee engagement will
have higher levels of job, unit and organizational performance, and therefore competitive advantage."
(Albrecht, Bakker, Gruman, Macey, & Saks, 2015):

2.1.2 CAREER DEVELOPMENT:

The development of a career is a process that is unique for every employee and is dependent on such
as, the characteristics, abilities and skills of the individual employee. And the "social and economic
situations of their family and the society in which they live". (Miles, 2014) It is the fact that Employee
who have will to perform are well managed, highly motivated and are always keen about their career.
Career development programs are generated by organization that have influenced in working life.
(Markos & Sridevi, December 2010).

2.1.2.1 CAREER COUNSELING:

Career development in an organization is the responsibility of an organization. Career counseling
factor is a factor that has the greatest influence on the career development of employees (Rande,
Rahawarin, Jamaluddin, & Zacharias, 2015)

2.1.2.2 CAREER PLANNING:

"Career planning is a lifelong process, which includes choosing an occupation, getting a job, growing
in our job, possibly changing careers, and eventually retiring" (Patrick & Kumar, 2011).

2.1.2.3 TRAINING:
"Training is the formal and systematic modification of behavior through learning which occurs as a
result of education, instruction development and planned experience." (Fang 2010) Proper training
augments the employee's knowledge and skill.

2.1.2.4 CAREER DEVELOPMENT AND EMPLOYEE PERFORMANCE:

"Career development is the process in which employee goals are compared with the business needs. It
enhances the job performance of an employee" (Saeed, et al, 2013).

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2.1.3 SUPERVISORY SUPPORT:
Since career development is a continuing, self-motivated process, employees may need support and
encouragement in evaluate and reviewing their aims and purposes. (Markos & Sridevi, December
2010). Supervisors are in an important position to give proper feedback and provide resources or
arrange learning activities. Supervisors can add significantly support to employees' career
development by developing training program and workshops away from the work place that are more
effective in providing new information. (Rajeswari & Palanichamy., 2014). (Saeed, et al, 2013).

2.1.3.1 COMMUNICATION:
Employees may have better understanding of what management is expected from them by
establishing a proper communication system; it may also improve their ability to perform and are
become more responsible (Jiang, 2010) Managers and supervisors are than able to have cleared two-
way communications with employees, Employees have a chance to ask about their work and can ask
about the issues that are related to their work and life.

2.1.3.2 EMPOWERMENT:
Encourage employees to think independently, it gives freedom to employees to choose their way of
performing their jobs and to get expected results. (Markos & Sridevi, December 2010) A culture of an
organization will give employees a support to take part in decision making then employees become
more creative and will increase the performance.

2.1.3.3 FEEDBACK:
It has been generally shown that proper feedback and career development are the stronger factors than
money the consequences are reduced in employee turnover, customer service will be improved and
ultimately results in higher returns for the corporation (Patrick & Kumar, 2011).

2.1.4 REWARDS:
A very important tool in performance of an employee is reward. (Sajayigbe, O, & M.A. 2013).
"Rewards are monetary (extrinsic) and non-monetary (intrinsic) reward and both have positive impact
on enhancing employee’s performance". (Armstrong. 2012) "Financial rewards mean pay-for-
performance such as performance bonus, job promotion, commission, tips, gratuities and gifts etc."

2.1.4.1 FINANCIAL REWARDS:

The financial factors have major effect on employee performance are "pay-for- performance and
fixed-salary compensation (Saeed et al, 2013).” The financial rewards are "base pay, merit pay,
incentives, commission, bonus and healthy allowances.

"Non-monetary rewards include recognition, decision making rales, promotion, flexible working
hours and company uniforms." (Armstrong, 2012).

2.4.1.2 NON-FINANCIAL REWARDS:

Nonmonetary rewards are effective and can change one's attitude in the workplace that brings a
constructive change in environment which increases the performance of an employee. When
employees have positive behavior to perform their work, they are committed and engaged with the
organization. When they get some intrinsic rewards than they become more committed, motivated and
increases job satisfaction also." (Bari, Arit, & Shoaib, 2013). "Non-monetary rewards include
recognition, decision making rales, promotion, flexible working hours and company uniforms."
(Armstrong, 2012).

2.2 DEVELOP HYPOTHESIS:

This hypothesis suggests that there is a positive relationship between employee engagement and
employee performance. It proposes that when employees are engaged in their work, they are more
likely to exhibit higher levels of performance in various aspects, including task performance,

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creativity, innovation, and job satisfaction. The hypothesis assumes that engaged employees are more
motivated, committed, and willing to go above and beyond their job requirements, resulting in
improved performance outcomes. To test this hypothesis, empirical research can be conducted to
gather data on employee engagement levels and performance metrics, and statistical analysis can be
performed to examine the correlation or causality between the two variables.

H1: There is a significant impact of career development on employee engagement in the

pharmaceutical industry of Karachi.

H2: There is a significant impact of rewards on employee engagement in the pharmaceutical industry
of Karachi.

H3: There is a significant impact of supervisory support on employee engagement in the

pharmaceutical industry of Karachi

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 CHAPTER NO: 03

METHODOLOGY
3.1: INTRODUCTION:
This research is an academic research based on basic research. The time line is provided by the
institute, it is a cross sectional study based on survey strategy Cross sectional Rudy is basically the
study that has to be done in a particular period of time (Saunders, 2007). This research is particularly
done in a specific field i.e., pharmaceutical sector. The Pany was selected is Sami pharmaceuticals
(PVT) Ltd. The research is totally based on a research design given by Saunders and the questionnaire
is prepared from the established Sources, based on five Likert scale. Procedures for reliability are
examined with Cronbach's Alpha Co-efficient. The Statistical Package for Social Scientist (SPSS) is
used to calculate the data.

3.2: RESEARCH DESIGN:

The research was designed by Saunders was Research onion which providing a clear and
understandable guidelines and procedures to the researcher for undertaking the research. The
Research onion is comprising of five layers each layer explaining the procedure of the way how to
conduct the research.

SMART PLS-SEM:
SmartPLS is a software with graphical user interface for variance-based structural equation
modeling using the partial least squares path modeling method. Increasingly a number of
scholar(s) and academics are using SMART-PLS for data analysis in their research studies.
In SEM, a model is tested for quality of the measures (Measurement Model) and next for the
interrelationship between the variables (Structural Model). The session discusses in detail the
Measurement and Structural model.
Table: 1.1
Descriptive Statistic

Table: 2.2

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GRAPHICAL REPRESENTATION:

FIG : 1.2

FIG :1.3

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RESULTS:
INPRETATION OF HYPOTHESIS AND ANSWER TO RESEARCH
QUESTIONS:

HI: There is a significance impact of Career Development on employee performance:

Hypothesis -I and research question -1 are related to find out the relationship and the effect of Career
Development on the performance of the employees. The Correlation are analyzed given positive
relationship and substantial impact of career development on the performance of the employees. The
value of (R = 0.309%) is the indication that career development is a main tool to enhance motivation
which leads to the increase in performance of employees. Employees are more engaged with the
proper career planning, counseling and training practices are highly productive for the company
which leads to organizational success.

H2: There is a significant impact of supervisory support on employee performance:

This hypothesis is about to analyze the relationship and the strength of Superisory support on the
performance of the employees. H 2 stated that there is a significant impact supervisory support on
employee performance. This relationship is analyzed Correlation analysis has been done and
outcomes arc shown the positive and significant relationship with employee performance. Pearson
Correlation found is 0.497 with significant p value of 0.000 which is lesser than 0.143 Supervisory n
has sub variables which are communication: empowerment and feedback have shown significant
impact on the performance of employee. The support from the supervisor leads the employee more
concern and engaged towards achieving goals which faults in high performance. The Hypothesis2 is
well accepted after analyzing the results.

H3: There is a significant impact of Rewards on employee performance:

Rewards are shown the least impact on employee performance. Pearson correlation result in 0.407
which is lesser value than career development and supervisory support. The significant value is 0.000
which is lesser than 0.05 ascertain that Rewards and Employee Performance arc correlated and having
a positive impact. The rewards are included both monetary and non-monetary and the outcome answer
the research question that employ are less concerned with rewards as compared to other two
predicting variables. The values arc giving the significant and positive correlation between the
employee performance and rewards. Although with comparatively less significance but have shown
the positive impact on the performance of the employees. Thus it proofs that Hypothesis 3 has
significant value on employee performance and accepted.

CONCLUSION:
Through survey it is found that factors have direct and positive affect on the employee engagement
and their performance in the Sami Pharmacuiticals (Pvt) Ltd. The employees are shown their keenness
and interest towards their better future programs, plans for career planning, appraisals and
recognitions on their performance. Research has found those variables that have strong positive
impact on employee engagement and performance; are good supervisory support, feedback,
empowerment, career development plan, counseling and proper training. It also concluded that
support from supervisor, clear path for the development of career and satisfied rewarding system are
the factors that makes the employees more dedicated and engaged towards performing tasks which
leads to the more satisfied employee with more engaged attitude leads to higher performance and are
fewer intentions to quit the job.

This research is also concluded that how non-monetary rewards and monetary rewards are effective to
encourage their employees to perform better and to what level rewards impacts on employee
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performance. The hypotheses assumed have significant and positive effect on the performance of the
employees. Research resulted in a positive relationship between supervisory support, career
developments, rewards and employee performance. All Hypotheses are accepted and are well
supported by the results.

The objective and the results of this research is to make the employee more satisfied, motivated and
hence engaged to their organizations. Due to increase in competition in the market the retaining of the
employee is a problem to overcome this problem this research found that variables observed and
measures that are recommended will be useful to minimize these issues. Due to time constraint and
with limited resources the research was carried out on three variables of employee engagement and
results are positive and the hypothesis that were deduced are found with strong linear relationship
with the performance of the employees which leads to the higher organizational performance and
results in higher productivity.

RECOMMENDATIONS:

1-With proper training and career development plans would make the employees more enthusiastic
about their future plans and are more engaged and dedicated towards their performances and are not
intended to leave the company.

2-Employees are not satisfied with the rewards offer by the company. Rewarding on recognition of
employee performance whether it would be monetary or non-monetary it will make the individual
valuable and worthy to the company. It is highly recommended that company focus on rewarding
system either it would be intrinsic or it would be extrinsic. Letter of appreciation, recognition of work,
applaud in front of colleagues could be strongly affecting the performance of the employees.

3-Employees are provided comfortable environment for working are more prone to work Supervisors
needs to establish more strong communication, giving freedom to discuss their issues regarding
working or their personal life and provide solutions as to make them feel valuable. The more satisfied
employee is more engaged and results in high performance.

4-Proper feedback during performing their tasks is necessary. Employees are looking at their
supervisors a prompt praise or a word of appreciation in front of colleagues. This is the way to boost
their energies and develop interest towards their task performance.

REFERENCES:
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015, March) Employee
engagement, human resource management practices and competitive advantage. Journal of
Organizational Effectiveness people and performance, Vol. 2 Iss 1, pp. 7-35.

Armstrong, M. (2012), Reward Management and Practice (4th ed.), uk: Kogan Page.

Bari, N., Arif, U., & Shoaib, A. (2013). "Impact of Non-Financial Rewards on Employee Attitude &
Performance in the workplace". International Journal of Scientific & Engineering Research, July,
Volume 4, Issue 7(Issue 7), 2554-2559.

Jiang, X. (2010). How to motivate people working in teams? International Journal of

Business and Management, 3(10), 223-229.

Kumar, D. P. & Swetha, G. (2011, June). A Prognostic Examination of Employee Engagement from
its Historical Roots. International Journal of Trade. Economics and Finance, Vol. 2 No. 3), 232-241.

Markos, S., & Sridevi, M. S. (December 2010), Employee Engagement: The Key to Improving
Performance. International Journal of Business and Management, l50 No: 121, 89-96.

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Miles, M. (2014). The National Career Development Strategy.
https://docs.education.gov.au/collections/australian-bluepring-career-development-appendix,http://
education.gov.au/.https://doc.education.gov.au/category/creator.

Patrick, D. H., & Kumar, A. (2011, November). Career Management. Employee Development and
Performance in Indian Information Technology Organizations Business Management Dynamics, Vol.
1, No 3, 24-31.

Questionnaire:

Impact of Employee Engagement on Employee Performance

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Name: ____________________________

Designation: ____________________________

Age: 21-30 󠅶󠅶, 31-40 󠅶󠅶󠅶, 41-50 󠅶󠅶󠅶

Gender: Male 󠅶󠅶, Female 󠅶󠅶

Indicate the best answer on the Likert scale as given below;

S.No. Statement 1 2 3 4 5

1 Supervisory Support 1 2 3 4 5
How frequently do you receive feedback on your performance from
2 1 2 3 4 5
your immediate supervisor/manager?
Do you believe the feedback you receive is constructive and helps you
3 1 2 3 4 5
improve your performance?
How often do you receive recognition or praise for your achievements
4 1 2 3 4 5
and contributions?
5 Carrer Development 1 2 3 4 5

6 In what ways do you prefer to receive feedback and recognition? 1 2 3 4 5

Do you receive opportunities for professional development and
7 1 2 3 4 5
training?
Are the training programs and resources provided aligned with your
8 1 2 3 4 5
job responsibilities and career goals?
Are you encouraged to apply the skills and knowledge acquired from
9 1 2 3 4 5
training in your work?
Are there flexible work arrangements available to accommodate
10 1 2 3 4 5
personal needs?
11 Rewards 1 2 3 4 5
How would you rate the organization's efforts in fostering work-life
12 1 2 3 4 5
balance?
Are the performance recognition and rewards aligned with your
13 1 2 3 4 5
performance and contributions?
Do you believe that the recognition and rewards system is fair and
14 1 2 3 4 5
equitable?
How satisfied are you with the current performance recognition and
15 1 2 3 4 5
rewards system?
16 how satisfied are you with your current job? 1 2 3 4 5

17 Additional Comments: 1 2 3 4 5

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