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Employee Satisfaction and
Commitment
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Why Worry About
Employee Attitudes?
Outcome
Absenteeism
Turnover
Satisfaction
-.23
-.22
Commitment
-.23
-.23
Lateness
Organizational citizenship
Counterproductive behavior
Performance
-.11
.24
-.37
.30
-.29
.25
-.36
Commitment
.59
Note: Numbers in table are corrected correlations
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Individual Differences in
Employee Satisfaction
• Important Findings
– Consistency across jobs
– Consistency across time
– Relationship between life
satisfaction and job satisfaction
• Why?
– Genetic predispositions
– Core self-evaluations
•
•
•
•
self-esteem
self-efficacy
internal locus of control
optimism/positive affectivity
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Types of Organizational
Commitment
• Affective commitment
• Continuance commitment
• Normative commitment
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Core Self-Evaluation
Judge and Bono (2001) Meta-Analysis
Corrected Correlations With
Core-Evaluation Trait
Satisfaction
Performance
Self-esteem
.26
.26
Self-efficacy
.45
.23
Internal locus of control
.32
.22
Emotional stability
.24
.19
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Personality
Meta-Analysis Results
Corrected Correlations With
Personality Trait
Satisfaction Performance Turnover
Openness
.02
.06
.10
Conscientiousness
.26
.24
-.22
Extraversion
.25
.09
-.04
Agreeableness
.17
.12
-.27
Stability
.29
.15
-.20
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Your Predisposition to be Satisfied
• Interest Inventory
• Life Satisfaction Measure
• Core Self-Evaluation
– self-esteem
– locus of control
– affectivity
• Job Satisfaction History
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International Differences in Job Satisfaction
Sousa-Poza and Sousa-Poza (2000)
•
•
•
•
•
•
•
•
•
•
•
5.69
5.66
5.47
5.45
5.43
5.40
5.34
5.27
5.24
5.22
5.18
Denmark
Cyprus
Switzerland
Israel
Netherlands
Spain
United States
New Zealand
Sweden
Norway
Italy
•
•
•
•
•
•
•
•
•
•
5.17 Germany
5.17 Portugal
5.13 Great Britain
5.13 Czech Republic
5.09 France
5.05 Bulgaria
4.95 Slovenia
4.87 Japan
4.86 Russia
4.82 Hungary
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Dirty Jobs
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Discrepancy Theories
• Have the employee’s expectations been met?
– Realistic job previews (RJPs)
• Is the employee a good fit?
–
–
–
–
Vocation
Job
Organization
Coworkers and supervisor
• Have the employee’s needs, values and
wants been met?
– Maslow’s Needs Hierarchy
– ERG Theory
– Two-factor Theory
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Person-Organization Fit
Kristof-Brown et al. (2005) Meta-Analysis
Employee fit with
Attitude or Behavior Organization Group Supervisor
Job
Satisfaction
.44
.31
.44
.56
Commitment
Performance
.51
.07
.19
.19
.09
.18
.47
.20
Turnover
Turnover intent
- .14
- .35
Absenteeism
- .05
- .08
- .46
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Maslow’s Need Hierarchy
Self-Actualization
Needs
Ego Needs
Social Needs
Safety Needs
Basic Biological Needs
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Discrepancy Theories
ERG Theory
• Growth
• Relatedness
• Existence
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Discrepancy Theories
Two-Factor Theory
• Motivators
– responsibility
– challenge
– job control
• Hygiene factors
– pay
– benefits
– coworkers
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Job Facets
• Are the tasks enjoyable?
• Do the employees enjoy
working with their
supervisors and
coworkers?
• Are coworkers outwardly
unhappy
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Are Rewards And Resources
Given Equitably?
• Equity Theory
• Components
– inputs
– outputs
– input/output ratio
• Possible Situations
– underpayment
– overpayment
– equal payment
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Organizational Justice
• Distributive justice
• Procedural justice
• Interactional justice
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Correlations with Perceptions of Justice
Colquitt, Conlon, Wesson, Porter, and Ng (2001)
Outcome
Procedural
Justice
.62
Distributive
Justice
Organizational commitment
.57
.51
Trust
.61
.51
Withdrawal
- .46
- .50
Performance
.36
.15
- .31
- .30
Job satisfaction
Negative employee reactions
.56
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Is There a Chance for Growth
and Challenge?
• Enriched jobs
–
–
–
–
–
Variety of skills needed
Employee completes entire task
Tasks have meaning
Employee has input/control
employee receives feedback
• Methods
– Job rotation
– Job enlargement
– Job enrichment
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Increasing Job Satisfaction
•
•
•
•
•
•
•
•
Hire “Satisfied” Employees
Eliminate Dissatisfiers
Express appreciation and provide proper feedback
Increase opportunities to socialize
Hold special events and friendly competitions
Increase humor
Have surprises
Assign the right tasks to the right people
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Hire “Satisfied Employees”
• Test for Satisfaction Potential
– Interest inventory
– Core self-evaluation
– Satisfaction history
• Provide a realistic job preview
• Look for person-organization fit
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Eliminate Dissatisfiers
• Interpersonal conflict
– Peers
– Supervisors
– Customers
•
•
•
•
•
Inequity
Low pay
Job security
Poor working conditions
Work schedule issues
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Hold Special Events and
Friendly Competitions
• Casual or spirit days
• Increase socialization
through parties, picnics,
and socials
• Hold fun contests
• Celebrate birthdays and
special occasions
• Encourage humor
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Express Appreciation and
Provide Proper Feedback
• Liberal use of praise and
thanks
• Positive feedback
• Service and performance
awards
• _________________
• _________________
• _________________
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Increase Opportunities to
Socialize
•
•
•
•
•
•
•
Picnics
Lunches
_______________
_______________
_______________
_______________
_______________
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Hold Special Events and Friendly
Competitions
•
•
•
•
•
•
Casual days
Company logo day
________________
________________
________________
________________
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Increase Humor
• Bulletin boards with humor
• Attach cartoons to boring
memos
• ________________
• ________________
• ________________
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Have Surprises
• Order lunch for everyone
• Let everyone leave an
hour early
• __________________
• __________________
• __________________
• __________________
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Assign the Right Tasks to
the Right People
• People have different
interests
• People have different
skills
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Dream Jobs
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Measuring Job Satisfaction
• Faces Scale
• Job Descriptive Index (JDI)
• Minnesota Satisfaction
Questionnaire
• Job in General Scale
• Nagy Satisfaction Scale
• Custom designed inventories
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Measuring Commitment
• Allen and Myer Survey
• Organizational Commitment Questionnaire
• Organizational Commitment Scale
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Year
Cost of
Absenteeism
2007
2006
2005
2004
2003
U. S. Absenteeism Rate
CCH Survey
BNA Survey
2.30
$660
$610
$645
2.50
2.30
2.40
1.90
1.40
1.60
2002
2001
2000
$789
$755
$610
2.10
2.20
2.10
1.60
1.70
1.70
1998
1996
$757
$603
3.25
2.80
1.60
1.60
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© 2013 Cengage Learning
International Differences – Nutreco (2000)
Country
Absenteeism Rate (%)
Canada
Ireland
Poland
Chile
1.6
1.9
2.3
2.7
United Kingdom
Spain
France
3.2
3.8
4.0
Belgium
Norway
Netherlands
6.3
7.2
7.8
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© 2013 Cengage Learning
Reason for Missing Work (CCH Survey)
Year
Illness
Stress
Personal
Needs
Family
Issues
Sense of
Entitlement
2007
2006
2005
2004
34
35
35
38
13
12
12
11
18
18
18
18
22
24
21
23
13
11
14
10
2003
2002
2000
1998
36
33
40
20
11
12
5
16
18
21
20
24
22
24
21
21
13
10
14
19
1996
28
11
20
26
15
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Actual Employee Excuses for Missing Work
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
I was sprayed by a skunk.
I tripped over my dog and was knocked unconscious.
My bus broke down and was held up by robbers.
I was arrested as a result of mistaken identity.
I forgot to come back to work after lunch.
I couldn’t find my shoes.
I hurt myself bowling.
I was spit on by a venomous snake.
I totaled my wife’s jeep in a collision with a cow.
A hitman was looking for me.
My curlers burned my hair and I had to go to the hairdresser
I eloped.
My cat unplugged my alarm clock.
I had to be there for my husband’s grand jury trial.
I had to ship my grandmother’s bones to India. (note: she had passed away 20
years ago)
Source: 2004 CareerBuilder.Com Survey
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Why Employees Are Absent
• No consequences for
attending or missing work
• Illness and personal
problems
• Individual differences
• Unique events
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Increasing Attendance by Having
Consequences for Missing Work
• Rewards for Attending
– Financial incentives
• Well pay
• Games
• Financial bonuses
– Paid Time-off Programs
– Recognition programs
• Discipline for Not Attending
• Clear Policy and Record Keeping
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Increasing Attendance by
Reducing Employee Stress
• Overload
• Conflict
– peers
– supervisors
• Boredom
• Safety Issues
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Increasing Attendance by
Reducing Illness
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Types of Wellness Programs
SHRM 2011 Survey
Wellness Program
Employee assistance program
Provide wellness information
Health screening programs
Smoking cessation program
Weight loss program
On-site fitness center
Stress reduction programs
% Offering
75
75
42
36
30
24
12
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CCH Absence Control Surveys
Absence Control
Method
Percent Using
2003 2005
Effectiveness Rating
2007
2003
2005
2007
Disciplinary action
Performance appraisal
Verification of illness
Paid leave bank
96
90
89
3.3
3.4
3.4
84
79
82
2.9
3.0
2.9
75
76
74
2.9
3.2
3.2
59
67
60
3.6
3.5
3.6
Personal recognition
No-fault systems
Bonus programs
62
66
57
2.5
2.6
2.6
62
63
59
3.0
3.0
2.9
52
57
51
3.1
3.3
3.3
Buy-back programs
548
58
53
3.3
3.5
3.4
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Why Do Employees Leave?
• Unavoidable Reasons
–
–
–
–
school ends
job transfer
illness
family issues
• Advancement
– more responsibility
– better pay
• Unmet Needs
• Escape From
– people
• management
• coworkers
• customers
– working conditions
– stress
• Unmet Expectations
– organization
– job
– career
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Why Are Your Employees
Leaving?
• Exit Interviews
• Attitude Surveys
• Salary Surveys
– pay
– benefits
– time off
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The Cost of Turnover
Visible Costs Per Hire
•
•
•
•
Advertising charges
Agency fees
Referral bonuses
Staff time & benefits
• Travel Costs
– staff
– applicants
• Relocation Costs
– processing applications • Miscellaneous Costs
– interviewing
• Overhead
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The Cost of Turnover
Hidden Costs
• Loss of Productivity
–
–
–
–
employee leaving
other employees
vacant position
new employee (1 year)
• Inefficiency
• Overtime
• Training Costs
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Estimating the Cost of Turnover
• Industry Norms
– rate is 1.4% per month
– cost is 1.5 times salary
• Custom Statistics
– www.advantagehiring.com/calculators/calc_turnover.shtml
– www.uwex.edu/ces/cced/publicat/turn.html
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Financial Savings From
Turnover Reduction
• Last Year
– 5 employees leave each
month (60 per year)
– Average salary is
$20,000
– Cost of turnover is
60 * $20,000 * 1.5 =
$1,800,000
• This Year
– 4 employees leave each
month (48 per year)
– Average salary is
$20,000
– Cost of turnover is
48 * $20,000 * 1.5 =
$1,440,000
– $360,000 saved through
reduced turnover
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Reducing Turnover
Compensation Issues
• Match the market
• Use job evaluation to
ensure internal equity
• Offer retention/tenure
bonuses (stay for pay)
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Increasing Salary and Benefits
Will only work if:
• Employees are leaving due to
low compensation or benefits
• The turnover rate is high
• The salary increase will be a
meaningful amount
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Reducing Turnover
Selection Issues
• Conduct realistic job previews
• Look for person-organization fit
• Study predictors of people who leave
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Reducing Turnover
Organizational Issues
•
•
•
•
Provide training
Show appreciation
Mediate conflicts
Meet employee needs
– safety
– social
– growth
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Strategic Use of Benefits to
Attract and Retain Applicants
• By Providing
– Health care for
domestic partners
– Daycare benefits
–
–
–
–
Meal benefits
Paid time-off
Flexible schedules
Tuition/books
• You Can Attract/Retain
– Gay employees
– Dual career families and
parents on public assistance
– Students and retirees
– Young people
– Homemakers/parents
– Students
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Applied Case Study: Reducing
Turnover at Bubba Gump Shrimp
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Focus on Ethics
Organizational Commitment
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What Do You Think?
• Do you think that incentives are a form of bribery? If so,
do you think it’s unethical for companies to do this?
• What would keep you at a company for a longer period?
Would incentives such as an Attendance Reward Program
or end of the year bonuses make a difference in whether
you left a job?
• Do you think that using such incentives is a way for
leaders to ignore what they should be doing to make things
better for the employees?
• What are some other ethical dilemmas that might occur by
offering incentives to increase commitment or job
satisfaction?
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