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Employee Satisfaction and

Commitment

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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
Absenteeism
-.23
Turnover
-.22
Lateness
-.11
Organizational citizenship
.24
Counterproductive behavior
-.37
Performance
.30
Commitment
.59

Commitment
-.23
-.23
-.29
.25
-.36

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

Core-Evaluation Trait

Corrected Correlations With

Satisfaction Performance

Self-esteem
Self-efficacy
Internal locus of control

.26
.45
.32

.26
.23
.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, 10.3, 10.4

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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
5.66
5.47
5.45
5.43
5.40
5.34
5.27
5.24
5.22
5.18

Denmark
Cyprus
Switzerland
Israel
Netherlands
Spain
United States
New Zealand
Sweden
Norway
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 Fit
Kristof-Brown et al. (2005) Meta-Analysis
Employee fit with
Attitude or Behavior Organization Group Supervisor
Satisfaction
Commitment
Performance

.44
.51
.07

Turnover
Turnover intent

- .14
- .35

Absenteeism

- .05

.31
.19
.19

.44
.09
.18

Job
.56
.47
.20
- .08
- .46

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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

.51

Withdrawal

- .46

- .50

Performance

.36

.15

- .31

- .30

Negative employee reactions

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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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Exercise 10.5
Case Study

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Year
2007
2006
2005
2004
2003
2002
2001
2000
1998
1996

Cost of
Absenteeism

$660
$610
$645
$789
$755
$610
$757
$603

U. S. Absenteeism Rate
CCH Survey
BNA Survey
2.30
2.50
2.30
2.40
1.40
1.90
1.60
2.10
1.60
2.20
1.70
2.10
1.70
3.25
1.60
2.80
1.60
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International Differences Nutreco (2000)

Country
Canada
Ireland
Poland
Chile
United Kingdom
Spain
France
Belgium
Norway
Netherlands

Absenteeism Rate (%)

1.6
1.9
2.3
2.7
3.2
3.8
4.0
6.3
7.2
7.8

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Reason for Missing Work (CCH Survey)

Year

Illness

Stress

Personal
Needs

Family
Issues

Sense of
Entitlement

2007
2006
2005
2004
2003
2002
2000
1998
1996

34
35
35
38
36
33
40
20
28

13
12
12
11
11
12
5
16
11

18
18
18
18
18
21
20
24
20

22
24
21
23
22
24
21
21
26

13
11
14
10
13
10
14
19
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 2008 Survey
Wellness Program
Some form of wellness program
24-hour nurse line
Health screening programs
Smoking cessation program
Weight loss program
On-site fitness center
Stress reduction programs
On-site medical care

% Offering
58
50
41
40
31
21
14
12
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Effect of Absence Control Methods

Meta-Analysis Results
Absence Control Method
Well pay
Flextime
Compressed work schedules
Wellness programs
Feedback
Discipline
Recognition
Financial incentives
Games

# of Studies
4
10
5
10
3
9
6
7
6

Effect Size
.86
.59
.44
.37
.37
.36
.30
.17
.08

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CCH Absence Control Surveys

Absence Control
Method
Disciplinary action
Performance appraisal
Verification of illness
Paid leave bank
Personal recognition
No-fault systems
Bonus programs
Buy-back programs

Percent Using

Effectiveness Rating

2003

2005

2007

2003

2005

2007

96

90

89

3.3

3.4

3.4

84

79

82

2.9

3.0

2.9

75

76

74

2.9

3.2

3.2

59

67

60

3.6

3.5

3.6

62

66

57

2.5

2.6

2.6

62

63

59

3.0

3.0

2.9

52

57

51

3.1

3.3

3.3

548

58

53

3.3

3.5

3.4
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Exercise 10.6 Case Study

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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 Turnover

Visible Costs Per Hire

Advertising charges
Agency fees
Referral bonuses
Staff time & benefits

Travel Costs
staff
applicants

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
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 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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Applied Case Study: Reducing

Turnover at Bubba Gump Shrimp

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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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