Employee Satisfaction and Commitment

1. Employee Satisfaction and Commitment

2. Why Worry About Employee Attitudes? Note: Numbers in table are corrected correlations

3. 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

4. Types of Organizational Commitment • Affective commitment • Continuance commitment • Normative commitment

5. Core Self-EvaluationJudge and Bono (2001) Meta-Analysis

6. PersonalityMeta-Analysis Results

7. Your Predisposition to be Satisfied • Interest Inventory • Life Satisfaction Measure • Core Self-Evaluation • self-esteem • locus of control • affectivity • Job Satisfaction History

8. 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 International Differences in Job SatisfactionSousa-Poza and Sousa-Poza (2000)

9. Going Hollywood Dirty Jobs

10. 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

11. Person-Organization FitKristof-Brown et al. (2005) Meta-Analysis

12. Maslow’s Need Hierarchy Self-Actualization Needs Ego Needs Social Needs Safety Needs Basic Biological Needs

13. Discrepancy TheoriesERG Theory • Growth • Relatedness • Existence

14. Discrepancy TheoriesTwo-Factor Theory • Motivators • responsibility • challenge • job control • Hygiene factors • pay • benefits • coworkers

15. Job Facets • Are the tasks enjoyable? • Do the employees enjoy working with their supervisors and coworkers? • Are coworkers outwardly unhappy

16. Are Rewards And Resources Given Equitably? • Equity Theory • Components • inputs • outputs • input/output ratio • Possible Situations • underpayment • overpayment • equal payment

17. Organizational Justice • Distributive justice • Procedural justice • Interactional justice

18. Correlations with Perceptions of JusticeColquitt, Conlon, Wesson, Porter, and Ng (2001)

19. 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

20. 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

21. Hire “Satisfied Employees” • Test for Satisfaction Potential • Interest inventory • Core self-evaluation • Satisfaction history • Provide a realistic job preview • Look for person-organization fit

22. Eliminate Dissatisfiers • Interpersonal conflict • Peers • Supervisors • Customers • Inequity • Low pay • Job security • Poor working conditions • Work schedule issues

23. 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

24. Express Appreciation and Provide Proper Feedback • Liberal use of praise and thanks • Positive feedback • Service and performance awards • _________________ • _________________ • _________________

25. Increase Opportunities to Socialize • Picnics • Lunches • _______________ • _______________ • _______________ • _______________ • _______________

26. Hold Special Events and Friendly Competitions • Casual days • Company logo day • ________________ • ________________ • ________________ • ________________

27. Increase Humor • Bulletin boards with humor • Attach cartoons to boring memos • ________________ • ________________ • ________________

28. Have Surprises • Order lunch for everyone • Let everyone leave an hour early • __________________ • __________________ • __________________ • __________________

29. Assign the Right Tasks to the Right People • People have different interests • People have different skills

30. Going Hollywood Dream Jobs

31. Measuring Job Satisfaction • Faces Scale • Job Descriptive Index (JDI) • Minnesota Satisfaction Questionnaire • Job in General Scale • Nagy Satisfaction Scale • Custom designed inventories

32. Measuring Commitment • Allen and Myer Survey • Organizational Commitment Questionnaire • Organizational Commitment Scale

33. Absenteeism

35. International Differences – Nutreco (2000)

37. 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

38. Why Employees Are Absent • No consequences for attending or missing work • Illness and personal problems • Individual differences • Unique events

39. 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

40. Increasing Attendance by Reducing Employee Stress • Overload • Conflict • peers • supervisors • Boredom • Safety Issues

41. Increasing Attendance by Reducing Illness

42. Types of Wellness ProgramsSHRM 2011 Survey

43. CCH Absence Control Surveys

44. Turnover

45. 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 Why Do Employees Leave?

46. Why Are Your Employees Leaving? • Exit Interviews • Attitude Surveys • Salary Surveys • pay • benefits • time off

47. Advertising charges Agency fees Referral bonuses Staff time & benefits processing applications interviewing Overhead Travel Costs staff applicants Relocation Costs Miscellaneous Costs The Cost of TurnoverVisible Costs Per Hire

48. The Cost of TurnoverHidden Costs • Loss of Productivity • employee leaving • other employees • vacant position • new employee (1 year) • Inefficiency • Overtime • Training Costs

49. 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

50. 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 Financial Savings From Turnover Reduction