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Employee Satisfaction and Commitment
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Think of a job in which you were really unhappy? Why was it so bad?
I/O Psychology in My Life Exercise 10.1 Think of a job in which you were really unhappy? Why was it so bad? Now think of a job in which you were very happy and satisfied. Why was it so good?
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Why Worry About Employee Attitudes?
Outcome Satisfaction Commitment Absenteeism -.23 Turnover -.22 Lateness -.11 -.29 Organizational citizenship .24 .25 Counterproductive behavior -.37 -.36 Performance .30 .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 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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What is Your Predisposition for Satisfaction. Exercises 10. 2, 10
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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 Percentage of Employees Satisfied with Their Jobs 2013 Randstad Survey
Most Satisfied 80% Denmark 79% Norway 78% Mexico 78% India 77% Luxembourg 77% Switzerland 76% Malaysia 76% Netherlands 75% Canada 75% Belgium 71% United States 71% Sweden Least Satisfied 39% Japan 48% Hungary 48% Hong Kong 54% China 57% Greece 59% Singapore 60% Slovakia 61% Chile 64% Italy 65% United Kingdom 66% Czech Republic 66% Turkey
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Going Hollywood 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 .56 Commitment .51 .19 .09 .47 Performance .07 .18 .20 Turnover - .14 - .08 Turnover intent - .35 - .46 Absenteeism - .05
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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 Distributive Justice Job satisfaction .62 .56 Organizational commitment .57 .51 Trust .61 Withdrawal - .46 - .50 Performance .36 .15 Negative employee reactions - .31 - .30
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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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Going Hollywood 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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Exercise 10.5 Case Study
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Absenteeism
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International Differences – Nutreco (2000)
Country Absenteeism Rate (%) Canada 1.6 Ireland 1.9 Poland 2.3 Chile 2.7 United Kingdom 3.2 Spain 3.8 France 4.0 Belgium 6.3 Norway 7.2 Netherlands 7.8
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Reason for Missing Work (CCH Survey)
Year Illness Stress Personal Needs Family Issues Sense of Entitlement 2007 34 13 18 22 2006 35 12 24 11 2005 21 14 2004 38 23 10 2003 36 2002 33 2000 40 5 20 1998 16 19 1996 28 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 2014 Survey
% Offering Some form of wellness program 62 On-site flu vaccinations 58 On-site health screening programs 47 Smoking cessation program 42 Weight loss program 32 On-site fitness center 20 Stress reduction programs 3
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Putting it all Together
Exercise 10.6 Case Study
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Turnover
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Why Do Employees Leave? Unavoidable Reasons Advancement Unmet Needs
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 processing applications interviewing Overhead Travel Costs staff applicants Relocation Costs Miscellaneous Costs
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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
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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 * $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 * $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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Putting it all Together
Applied Case Study: Reducing Turnover at Bubba Gump Shrimp
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Organizational Commitment
Let's Talk 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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