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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 2
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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 3
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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 Denmark • 5.17 Germany
• 5.66 Cyprus • 5.17 Portugal
• 5.47 Switzerland • 5.13 Great Britain
• 5.45 Israel • 5.13 Czech Republic
• 5.43 Netherlands • 5.09 France
• 5.40 Spain • 5.05 Bulgaria
• 5.34 United States • 4.95 Slovenia
• 5.27 New Zealand • 4.87 Japan
• 5.24 Sweden • 4.86 Russia
• 5.22 Norway • 4.82 Hungary
• 5.18 Italy
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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 .51 .19 .09 .47
Performance .07 .19 .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 Distributive
Justice 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 19
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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 U. S. Absenteeism Rate

Absenteeism 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 34
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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 35
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Reason for Missing Work (CCH Survey)

Year Illness Stress Personal Family Sense of
Needs Issues 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)

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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 % 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 Surveys

Absence Control Percent Using Effectiveness Rating
Method 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 3.443

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Why Do Employees Leave?

• Unavoidable Reasons • Escape From
– school ends – people
– job transfer • management
• coworkers
– illness
• customers
– family issues
– working conditions
• Advancement – stress
– more responsibility
• Unmet Expectations
– better pay
– organization
• Unmet Needs – 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 • Travel Costs
• Agency fees – staff
• Referral bonuses – applicants
• Staff time & benefits • 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 • This Year
– 5 employees leave – 4 employees leave each
each month (60 per month (48 per year)
year) – Average salary is
– Average salary is $20,000
$20,000 – Cost of turnover is
– Cost of turnover is 48 * $20,000 * 1.5 =
60 * $20,000 * 1.5 = $1,440,000
$1,800,000 – $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 • You Can Attract/Retain
– Health care for – Gay employees
domestic partners
– Daycare benefits – Dual career families and
parents on public assistance
– Meal benefits – Students and retirees
– Paid time-off – Young people
– Flexible schedules – Homemakers/parents
– Tuition/books – Students
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Applied Case Study: Reducing

Turnover at Bubba Gump Shrimp 56
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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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