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Employee Satisfaction and Commitment


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Why Worry About Employee Attitudes?

Outcome Satisfaction Commitment

Absenteeism -.23 -.23

Turnover -.22 -.23

Lateness -.11 -.29

Organizational citizenship .24 .25

Counterproductive behavior -.37 -.36

Performance .30

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-EvaluationJudge 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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PersonalityMeta-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 SatisfactionSousa-Poza and Sousa-Poza (2000)

• 5.69 Denmark• 5.66 Cyprus• 5.47 Switzerland• 5.45 Israel• 5.43 Netherlands• 5.40 Spain• 5.34 United States• 5.27 New Zealand• 5.24 Sweden• 5.22 Norway• 5.18 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 FitKristof-Brown et al. (2005) Meta-Analysis

Employee fit with

Attitude or Behavior Organization Group Supervisor Job

Satisfaction .44 .31 .44 .56

Commitment .51 .19 .09 .47

Performance .07 .19 .18 .20

Turnover - .14 - .08

Turnover intent - .35 - .46

Absenteeism - .05


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Basic Biological Needs

Maslow’s Need Hierarchy

Safety Needs

Social Needs

Ego Needs

Self-Actualization Needs


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Discrepancy TheoriesERG Theory

• Growth

• Relatedness

• Existence


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Discrepancy TheoriesTwo-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 JusticeColquitt, Conlon, Wesson, Porter, and Ng (2001)

Outcome Procedural

Justice

Distributive Justice

Job satisfaction .62 .56

Organizational commitment .57 .51

Trust .61 .51

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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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

U. S. Absenteeism Rate

CCH Survey BNA Survey

2007 2.30

2006 2.50

2005 $660 2.30

2004 $610 2.40 1.40

2003 $645 1.90 1.60

2002 $789 2.10 1.60

2001 $755 2.20 1.70

2000 $610 2.10 1.70

1998 $757 3.25 1.60

1996 $603 2.80 1.60


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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 13

2006 35 12 18 24 11

2005 35 12 18 21 14

2004 38 11 18 23 10

2003 36 11 18 22 13

2002 33 12 21 24 10

2000 40 5 20 21 14

1998 20 16 24 21 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 ProgramsSHRM 2011 Survey

Wellness Program % Offering

Employee assistance program 75

Provide wellness information 75

Health screening programs 42

Smoking cessation program 36

Weight loss program 30

On-site fitness center 24

Stress reduction programs 12


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CCH Absence Control SurveysAbsence Control

MethodPercent Using Effectiveness Rating

2003 2005 2007 2003 2005 2007

Disciplinary action 96 90 89 3.3 3.4 3.4

Performance appraisal 84 79 82 2.9 3.0 2.9

Verification of illness 75 76 74 2.9 3.2 3.2

Paid leave bank 59 67 60 3.6 3.5 3.6

Personal recognition 62 66 57 2.5 2.6 2.6

No-fault systems 62 63 59 3.0 3.0 2.9

Bonus programs 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 TurnoverVisible 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 TurnoverHidden 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 TurnoverCompensation 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 TurnoverSelection Issues

• Conduct realistic job previews• Look for person-organization fit• Study predictors of people who leave


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Reducing TurnoverOrganizational 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 EthicsOrganizational 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?