Employee Engagement and Commitment: A guide to understanding, measuring and increasing engagement in your organization. Robert J. Vance, Ph.D; SHRM Foundation’s Effective Practice Guidelines. 2006. SHRM Foundation. Employee Engagement: Key Ingredients Employee engagement includes several ingredients for which researchers have developed measurement techniques. These ingredients include the degree to which employees fully occupy themselves in their work, as well as the strength of their commitment of the employer. Occupying the Job: There are degrees to which an individual “occupies” a job role. In the personal engagement perspective, individuals fully occupy themselves physically, intellectually and emotionally in their work role. At the personal disengagement end, they uncouple themselves and withdraw from the role (Psychologist William Kahn, 1990). How Do Individuals Become personally engaged in their work activities? Committing to the Work and the Company: Commitment can be defined as both a willingness to persist in a course of action and reluctance to change plans, often owing to a sense of obligation to stay the course. Commitment manifests itself in distinct behavior: People devote time and energy to fulfill job responsibilities as well as their family, personal, community and spiritual obligations. People experience and emotional component- Expressing positive feelings toward an entity or individual to whom they have made a commitment. People experience a rational element – they consciously decide to make commitments, then thoughtfully plan and carry out the actions required to fulfill them. Expectation of Reciprocation – Psychological Contract of Employment. : People expect an exchange for their commitment, assuming they will get something a return in value – such as favors, affection, gifts, attention, goods, money and / or property. Employers have made a tacit agreement: In exchange for worker’s commitment, organizations would provide forms of value for employees, such as secure jobs and fair compensation. When an entity or individual to whom someone has made a commitment fails to come through with the expected exchange, the commitment erodes. Restructuring and reductions in staff have meant reductions in staff and layers of management. Although these actions have been deemed necessary ( to compete, budgetary restraints), these changes have broken the traditional psychological contract of employment. This has led to a feeling of less commitment from some employees. This has led to 10 common themes for reviving employee commitment. 1 10 Common Themes: How Companies Measure Engagement: Pride in employer Satisfaction with employer Job satisfaction Opportunity to perform well at challenging work Recognition and positive feedback for one’s contributions Personal support from one’s supervisor Effort above and beyond the minimum Understanding the link between one’s job and the organization’s mission Prospects for future growth with one’s employer Intention to stay with one’s employer Figure 1: Employer Practices Ultimately Influence Business Results How does an engaged workforce generate valuable business results for an organization? The process starts with employer practices such as job and task design, recruitment, selection, training, compensation, performance management and career development. Such practices affect employees’ levels of engagement as well as job performance. Performance and engagement then interact to produce business results. Job Performance Employer Practices Business Results Employee Engagement and Commitment 2 Food For Thought: Thinking About Commitment and Engagement Employee Commitment Employee Engagement How do you and others define How do you and others define commitment? engagement? Are some employees engaged in How do you know that certain your work but not committed to the employees in your company are organization ? engage? Do they relish their jobs? To whom are your organization’s Enjoy specific responsibilities or employees committed? To the tasks? Willing “go the extra mile”? organization? Their supervisors? In teams, departments or business Co-workers? Team members? units that have a large number of Customers? engaged employees, what business What business results has results are you seeing? Higher commitment from employees productivity, lower costs, more created for your organization? efficiency, lower turnover, higher For example, has commitment product or service quality? reduced turnover and, therefore, Conversely, how do disengaged decreased recruitment, hiring and employees behave, and what are the training costs? consequent costs fort the teams, What does your company do to units and organization? reciprocate employees’ commitment? Is the organization living up to its side of the bargain? A Job Performance Model Figure 2 below reflects that a person possesses attributes such as knowledge, skills, abilities, temperament , attitudes and personality. He or she uses these attributes to accomplish work behaviors according to organization-defined procedures, by applying tools, equipment and/ or technology. Work behaviors, in turn, create the services that make the organization successful. These are classified as prescribed (required to accomplish duties and tasks specified in job description), voluntary (extra behaviors that an employee contributes for the good of the organization) and proscribed behaviors ( including unexcused absenteeism, stealing and other counteractive or illegal behaviors). 3 Figure 2: A Job Performance Model Work Context Leadership Work Organization Physical Setting PERSON Knowledge Skill Experience Attitudes Ability Temperament Personality PROCESS Tools, Equipment, Technology Procedures --Prescribed --Voluntary --Proscribed Social Setting PRODUCT/ SERVICE Quality Quantity Timeliness Safety The Power of Enrichment Findings show that managers who provide enriched work (jobs that are high in meaningfulness, variety, autonomy and co-worker trust) stimulate engagement and enthusiasm in their employees. Broad definition of job roles enhances workers’ willingness to take ownership of challenges that lie beyond their immediate assigned tasks. These challenges inspire people to innovate and to solve problems proactively. To Increase Engagement Imbue jobs with : o o o o To Enhance Commitment Demonstrate reciprocity by providing employees with opportunities for personal development. Meaningfulness Variety Autonomy Co-Worker Support Increasing With job enrichment, employee performance on prescribed on prescribed tasks improves. Workers define their role more broadly – and willingly take on tasks outside their formal job description. Knowledge Skills Experience Expertise 4 Increasing Self-efficacy Self-esteem Employer Commitment Recruiting for Engagement and Commitment If you design jobs specifically to engage employees, then you’ll want to ensure that recruiting ads extol those positions attractive features, such as challenging work assignments a highly skilled team environment or minimal supervision. Also consider how you might best seek candidates from inside your organization. When you recruit existing employees for desirable jobs, you enhance their engagement (by maximizing the person to job fit) and commitment (by providing growth and advancement opportunities to employees in return for their loyalty). To Increase Engagement To Enhance Commitment Target qualified applicants likely to find the work interesting and challenging. For internal candidates Send recruiting messages that: Emphasize possibilities of movement/promotion to more desirable jobs, to signal commitment reciprocity. Send recruiting messages that: Extol attractive job features to enhance person-job fit. For external candidates Highlight the employer side of the exchange relationship-pay and benefits, advancement opportunities, flexible work hours. Encourage those who are not suited to the work to self-select out. Recognized and address commitment congruence (e.g., work-family balance). Encourage those who are not suited to the organization to self-select out. 5 Effective Employee Selection When you select the right person for the right jobs, your new hires carry out their work more smoothly and experience fewer performance problems. To enhance engagement through your selection of employees, identify those candidates who are best-suited to the job and your organization’s culture. To Increase Engagement Select the right individuals for the jobs To Enhance Commitment Present selection hurdles that are relevant to the job in question. Successful candidates will feel good about surmounting such hurdles to land the job. Choose candidates most likely to: Perform prescribed job duties well Contribute voluntary behaviors Avoid proscribed activities Crate a positive first impression of your organization’s competence. You will set the stage for growth of long-term commitment. Training and Development To Enhance Commitment To Increase Engagement Provide employee orientation to establish: The employer-employee exchange relationship. Understanding of how the job contributes to the organization’s mission (encouraging engagement from the beginning). Foster person-organizational fit. Signal commitment reciprocity by: Your investments in training. Modes of training delivery that accommodates employees’ other commitments. Increasing Knowledge Skills Experience Expertise Increasing Offer skill development to enhance: Performance Satisfaction Self-efficacy Self-efficacy Self-esteem Employer Commitment Provide training to encourage prescribedand voluntary performance. 6 Effective Performance Management Begin by linking job objectives to organizational objectives. What are your organizational goals and how will each employee achieve them ? What expectations and results does your organization expect employees to achieve? How might you help your managers throughout the organization to communicate performance expectations and goals to their direct reports? Encourage managers to include employees in the goal-setting process. This helps to ensure that workers understand the goals, and promotes acceptance of challenging objectives that they help define. In addition, consider how you will recognize and encourage contributions that exceed expectations. Performance management is a continuous process. Managers can use routine discussions about performance and feedback sessions to learn which aspects of the job hold the most interest for each employee and which tasks are most challenging. During such discussions, managers can define what “going above and beyond the call of duty” looks like and generate ideas for rewarding such contributions. Consider how to treat experience employees. Design a performance management system that recognizes and rewards proactive sharing of knowledge and expertise among co-workers. For example, create knowledge repositories of learning histories that can be stored in databases that employees can access, and then create incentives for those who so contribute. Effective performance management systems also identify employees who are not meeting expectations. Failing to address problem performance can erode other employees’ engagement and commitment, as their workloads increase and they conclude that the company is willing to tolerate poor performance. If feedback, coaching and remedial training are of little avail, the manager may need to move the person to a different position within the company where he or she can make a more valuable contribution, or let the individual go if there is not good match elsewhere in the organization. To Enhance Commitment To Increase Engagement Provide: Manage Performance: Challenging goals that align with your Enable employees to experience success organization’s strategic objectives. over the long term. Positive feedback and recognition for Facilitate congruence between employee accomplishments. commitment to your organization and other Recognition and appreciation for extra life commitments. voluntary contributions. Value the expertise of experienced employees. 7 Additional Information Regarding “ Employee Satisfaction”: SHRM 2007 Job Satisfaction: A Survey by the Society of Human Resource Management, June 2007. The SHRM Glossary of Human Resource Terms describes job satisfaction as a tool that Defines and measures how employees feel regarding their job, work environment, pay, benefits and so on. The recruitment and retention of qualified, skilled employees is the foundation of any business, small or large. Research shows that employees who are satisfied with their jobs are more likely to stay with their current employers. In the 2007 Job Satisfaction Survey, 79% if employees reported overall satisfaction with their current positions, with almost 4 out of 10 employees indicating they were very satisfied. The participants were asked to rate the importance of 22 aspects of the work environment commonly associated with employee job satisfaction. Sample Size: The HR professional sample was randomly selected from SHRM’s membership, which included 210,000 individual members. The survey was sent to approximately 3,000 SHRM members. The response rate was 27% ( 713 responded). The employee sample was based upon a randomly selected group selected by an outside research organization.. 604 employees were selected with a 57% response rate 344 responded). The top “very important” aspects of job satisfaction, according to employees and HR professionals were: Employees 1. Compensation 2. Benefits 3. Job security 4. Work/life balance 5. Communication between employees and senior management 6. Feeling safe in work environment 7. Management recognition of employee job performance 8. Relationship with immediate supervisor 9. Autonomy and independence 10. Opportunities to use skills/abilities HR Professionals 1. Relationship with immediate supervisor 2. Compensation 3. Management recognition of employee job performance 4. Benefits 5. Communication between employees and senior management 6. Opportunities to use skills/abilities 7. Career development opportunities 8. Job security 9. Flexibility to balance life and work issues 10. Career advancement opportunities 8 Opportunities to use skills/abilities. # 10 Employees and # 6 for HR Professionals: 49% of HR professionals and 35% of employees viewed this as very important to job satisfaction (45% HR/40% employees as important). Such opportunities are linked to job satisfaction because it is generally thought that employees feel good about their jobs when they are utilizing and contributing their unique skills to the organization. This element of job satisfaction appeared to be especially important to employees 35 years and younger compared with employees above the age of 55. This aspect was also a higher priority for female employees than for male employees. Management Recognition of Employee Job Performance. # 7 Employees and #3 for HR Professionals: 65% of HR professionals and 49% of employees believed this to be very important to job satisfaction (32% HR/3;7% employees as important). Employee recognition can include offering awards, incentives or something as simple as praise that recognizes and values outstanding work. It is believed to be a cost-effective and valuable tool that can help lower stress, absenteeism and turnover, and increase employee morale, productivity, competitiveness, revenue and profits. Employees 35 and younger valued recognition by their managers more than did employees 56 and older. Employees with 5 years or less of job tenure viewed recognition by management as more important than employees who had been with their organization for 16 years or more. Work / life balance practices. # 4 Employees and # 9 HR Professionals: 48% if HR Professionals and 52% of employees rated this as very important. This practice was perceived to have greater value by employees 55 and younger compared with those 56 and older. Females rated this as more important than males. Studies have reported that telecommuting, increases job satisfaction, productivity, amount of hours worked and commitment to job and lowers stress level. Other practices such as flextime, and compressed workweeks are low-cost alternatives and have shown to increase job satisfaction and productivity while lowering stress levels. This rating indicates that employees are focusing on tangible rewards, such as flexibility, rather than relationship aspects of the job. Work life programs are known to be excellent strategic tools to attract and retain talent. 9