Internal Communication and Employee Engagement as the Key Prerequisites of Happiness

This chapter presents a research model aimed to investigate internal communication satisfaction (ICS) and employee engagement as prerequisites of employee happiness. Employee engagement is seen as a dependent variable to ICS and as an independent variable to happiness. The research is based on quantitative data collected from 174 employees working in 12 international firms who specialize in IT and creative industries and have representative office in Serbia. Partial least squares structural equation modelling is used to identify relationships between constructs. The results demonstrate that ICS increases employee engagement, which in turn increases employee happiness. Employee engagement represents complementary mediation of the relationship between ICS and subjective happiness. The outcomes reveal how organizations can employ an internal communications strategy in order to enhance engagement of their employees and their happiness as the ultimate goal. This chapter addresses an understudied topic in the public relations and strategic communication field and its findings are opening new questions which may inspire research community to search for detailed explanation of the effect that ICS has on employee happiness.