Final Ob Term Paper

Introduction Over the last ten years, the study of commitment has advanced in many different directions. A variety of disciplines have adopted the topic as a theme in their research and these have offered fresh and significant insights. These recent advances include new approaches to both the conceptualisation of employee commitment and the particular human resource practices intended to increase it. Current research concerning employee commitment highlights the pitfalls of viewing commitment as a one-dimensional construct that can be enhanced by a particular human resource policy. This assumes that a particular practice, for example offering flexible working arrangements or more training, will have a significant and beneficial effect on employee commitment. Unfortunately, in practice it is not that simple because there is no single solution. All employees’ wants and needs cannot be addressed by a single policy. What is now apparent is that, as long as the organisation has been able to attract the right sort of employees and has provided a suitable work environment, employee commitment will be largely influenced by the interactions that occur between colleagues and with their immediate and senior managers. The relationship between the organisation and the employee, therefore, should be considered as being no different from any other type of relationship. Commitment is complex and continuous, and requires employers to discover ways of enhancing the work life of their employees.

The Benefits of a Committed Workforce The performance benefits accrued from increased employee commitment have been widely demonstrated in the literature. To list but a few, these include: ➢ increased job satisfaction ➢ increased job performance ➢ increased total return to shareholders ➢ increased sales ➢ decreased employee turnover ➢ decreased intention to leave ➢ decreased intention to search for alternative employers ➢ decreased absenteeism

Types of Commitment

We might think of commitment simply in terms of feelings of obligation or emotional attachment. However, in the last 15 years, a growing consensus has emerged that commitment should be viewed as a multidimensional construct. Allen & Meyer developed an early model that has received considerable attention. The three-component model they advocated was based on their observation that existing definitions of commitment at that time reflected at least three distinct themes: an affective emotional attachment towards an organisation (Affective Commitment); the recognition of costs associated with leaving an organisation (Continuance Commitment); and a moral obligation to remain with an organisation (Normative Commitment). In more recent years, this typology has been further explored and refined to consider the extent to which the social environment created by the organisation makes employees feel incorporated, and gives them a sense of identity. O’Malley contends that a review of the commitment literature produces five general factors which relate to the development of employee commitment: Affiliative Commitment: An organisation’s interests and values are compatible with those of the employee, and the employee feels accepted by the social environment of the organisation. Associative Commitment: Organisational membership increases employees’ self-esteem and status. The employee feels privileged to be associated with the organisation. Moral Commitment: The Institute for Employment Studies Employees perceive the organisation to be on their side and the organisation evokes a sense of mutual obligation in which both the organisation and the employee feel a sense of responsibility to each other. This type of commitment is also frequently referred to in the literature as Normative Commitment. Affective commitment: Employees derive satisfaction from their work and their colleagues, and their work environment is supportive of that satisfaction. Some researchers (eg Allen & Meyer, 1991) suggest that this is the most important form of commitment as it has the

most potential benefits for organisations. Employees who have high affective commitment are those who will go beyond the call of duty for the good of the organisation. In recent literature this form of commitment has also been referred to as ‘engagement’ and is the form of commitment that is most usually measured by organisations. Structural commitment: Employees believe they are involved in a fair economic exchange in which they benefit from the relationship in material ways. There are enticements to enter and remain in the organisation and there are barriers to leaving. This type of commitment is also frequently referred to in the literature as Continuance Commitment. With this in mind, employee commitment should be viewed as a business necessity. Organisations who have difficulty in retaining and replacing competent employees will find it hard to optimise performance. There are not only the immediate expenses of the recruitment process, but other hidden costs such as management time and lost productivity as new employees take time to become effective in their roles. Employee Commitment Senior care leaders are becoming increasingly aware that quality care cannot be provided without satisfied employees. However, satisfaction – in terms of the degree to which an employee is satisfied or likes his or her job – is only one part of the equation. Employers also need to ensure that employee commitment is on the radar, and that it is measured and cultivated throughout an employee’s tenure. Research suggests that although employees may be satisfied, there is no guarantee that they are committed. to their jobs or the organization. When thinking about employee satisfaction and commitment in the context of achieving organizational excellence, providers should consider: • how satisfaction and commitment are interrelated • how commitment affects organizational effectiveness • how the commitment process develops over the course of the employment lifecycle

Each of these aspects of commitment is explored below.

Satisfaction and Commitment Evidence of satisfaction is often measured in terms of retention, based on the assumption that a satisfied employee tends to stay with an organization, while a dissatisfied employee will leave. When the economic ramifications of turnover are considered, as well as its impact on effectiveness, reducing turnover is an important goal. “Commitment” (often referred to as “engagement” or “loyalty”) is a measure of alignment—alignment between the employee’s motivations and the organization’s mission. To what degree does the employee feel that he or she is making a positive contribution to the ultimate outcome? If an employee’s motivations are aligned with the organization’s mission, the employee most likely will perceive a personal stake in the outcome of his or her work and will aim to provide outstanding service. Commitment doesn’t just happen, however; it must be cultivated and developed as an employee gains more experience and becomes more familiar with the organization. Commitment is difficult to measure using traditional workforce outcomes such as turnover and retention. It is necessary to directly measure the employee’s relationship with his or her work and how it is aligned with the organization’s mission. Another consideration is how the employee’s commitment matures throughout his or her tenure. At the earliest stages of employment, during hiring, onboarding and orientation, the relationship with the employee is different than at later stages when training, education, support and reward are the focus. Ensuring employees remain committed over time is essential, as ultimately, the committed employees who are with your organization the longest most likely will become leaders among their peers, driving overall satisfaction and commitment within the workforce.

Commitment and Effectiveness

Research by My InnerView shows how employees, depending on how long they have been in their current positions, affect workforce outcomes differently. Figure 1 depicts this relationship between turnover and commitment among nurses and nursing assistants. In the figure, nursing homes are grouped by the employee commitment level, so that homes in the fourth quartile have the highest employee commitment. Turnover among new nursing staff is lower in facilities with higher employee commitment. In fact, nurse turnover in facilities with the highest employee commitment levels have half the nurse turnover of those in the lowest group. Nursing assistant turnover is also much lower when more new employees are becoming committed. Employees who become committed over time can play an important role as leaders. They have the power to create a work environment that engenders both commitment and satisfaction among their coworkers – resulting not only in lower turnover, but a more effective workforce. On the other hand, employees who become uncommitted or disengaged over time can negatively affect their coworkers’ employment experience. This research indicates that there is a strong correlation between committed, longer-term employees (who have been in their positions for at least a year) and overall commitment and satisfaction levels. However, there is not a strong relationship between disengaged, longer-term employees and new employees who are not becoming committed. This may indicate that organizational factors play a larger role in growing commitment than staff relationships do by themselves. The overall level of commitment across the workforce is strongly correlated with other areas of performance. Figure 2 demonstrates the relationship between employee commitment and customer satisfaction. Family and resident satisfaction levels are significantly higher where employee commitment is higher. In the fourth quartile, family satisfaction scores an average of 76 points (where Excellent=100, Good=67, Fair=33 and Poor=0). At the other end of

the scale, the first quartile group had satisfaction rates averaging just 68 points. Residents and family members rated the facilities similarly.

Fig. 1

Fig. 2

In another, more focused study in 2008, My InnerView researchers gathered a comprehensive group of measures consisting of employee and family satisfaction surveys, clinical and workforce measures, and Medicaid

cost reports for 350 facilities in one state. Positive relationships were found between employee commitment and financial performance and occupancy. Figure 3 shows that both occupancy and margin as a percentage of revenue are highest in facilities with the highest employee commitment.

Fig. 3

The Process of

Developing Commitment

Establishing Commitment

Employers must recognize that commitment is both a course of action and an outcome. My InnerView research, summarized in Figure 4, suggests that employee commitment is a process that develops as an employee moves through the chronology, or life cycle, of the employment relationship. Employees who start down a path of commitment may become disengaged from their work if the process falters. Gaining commitment as an outcome at each stage in the life cycle requires an alignment between an employer’s needs and the employee’s motivations. To understand more fully the commitment levels of staff, it is valuable to walk through the employment chronology and view the employer’s needs and employee’s expectations at each stage. The process of establishing commitment begins with recruitment and hiring. Both employers and recruits enter the employment relationship with a set of expectations. Employers hire based on the needs of the organization and how well the recruit will meet those needs. Finding the right people who will fit the organization’s culture, become committed to the work they do and the people they care for, and routinely go the extra mile is crucial to developing a committed workforce. Employees likewise will enter the employment relationship with expectations based on their needs. Formal orientation is often an employee’s first exposure to the organization. The orientation is an important venue for sharing work-related information and completing the hiring process, but it is also an opportunity to begin establishing commitment. The new employee is seeking confirmation that joining the organization was the “right decision.” This confirmation likely will come through the welcome the employee is shown and how this initial contact aligns with his or her idea of the organization’s mission and values. The process of establishing an employee’s commitment

continues through onboarding. Onboarding takes place over the employee’s first year. During the first three months, the employee learns how to perform his or her job. The employer has the opportunity to set the foundation for sustained employee productivity by clearly communicating job roles and expectations. The relationships an employee establishes with coworkers at this time are crucial. Learning how to work within a team will fuel productivity, and these relationships will help the employee navigate the organizational culture and understand employer expectations.

Setting the Stage for Commitment

During orientation and onboarding, each new employee receives: • Solid welcome with tour and introductions • Introduction to how his or her job is essential to attaining the organization’s vision • Written job description • Review by manager of job expectations • Adequate resources to do the job • Assignment of a buddy for fielding questions over the first three months Aligning Commitment

New employees who have moved beyond their first year will transition from learners to contributors. The roles, expectations and relationships that were An AAHSA White Paper 5 founded during onboarding will become the basis for a productive contribution to the organization’s work. Once employees know their place, they will start to pursue their own personal goals within the organization. Employers must work to encourage employees’ growth, development and commitment and to align these with the organization’s mission. To align commitment, providers should focus on training and support, encouragement and reward, as well as teamwork and communication. Training is necessary to help employees remain integrated within the organization’s systems and to update

employee skills in response to emerging care techniques. Ongoing training will help workers continue to navigate the workplace and employer expectations. Supporting education and personal development invests in a more informed workforce and affirms employees’ personal goals. Once fully aligned with the organization, employees who continue to grow personally become empowered to contribute independently to the organization’s success. Support includes the employee’s relationship with his or her supervisor and with other management. Employees who feel appreciated and receive validation that their daily work contributes to the organization’s success are far more likely to be committed to their work. The most effective way to help employees feel appreciated is to build a leadership culture in which managers and supervisors demonstrate empathy by listening and responding to employee needs and input. Encouragement and reward give an employee important feedback. They are a way to affirm that an employee’s hard work and motivations are aligned with the organization’s goals. Effective encouragement is specific, public and frequent. Rewards should be physical and tangible, but their value is a symbolic demonstration of an employee’s worth to the organization. Teamwork is essential to productivity and efficiency. It builds the foundation for communication among coworkers and between teammates and their supervisor. When employees are part of a smoothly functioning team, they become comfortable with their place and role in the organization.

Integrating Commitment

Fully integrated employees are the organization’s most committed. They know their place within the organization and should be fully empowered to make a unique, creative contribution. They are informed; they know the mission, vision, values and goals of the organization. They feel a sense of pride in belonging to the organization. They are ready and willing to strive for organizational goals, and embrace participation in that effort. Empowered employees are problem solvers, and they are willing to take initiative. These employees should also become mentors for those just beginning their employment relationship with the organization. Employee Disengagement

An employee can become disengaged during any point in the employment lifecycle. Disengagement happens when the employee’s motivations are not aligned with their work experience. As with any relationship, trust and mutual respect are established over time. If providers do not do their part in building the strength of this relationship, employee disengagement will follow. Even employees who are integrating commitment can become disengaged if the employer does not continue to cultivate commitment. Employee disengagement can take two forms – passive disengagement or active disengagement. An example that establishing commitment is not sufficient for aligning and integrating commitment is presented in Figure 5. Employees are grouped by how long they have worked for the employer. The percentage

of employees at each level of commitment is shown for these employee groups. The green fields represent the employees who are well along the path toward integrating commitment. The yellow and orange represent employees who are in danger of becoming disengaged. The employees in the red fields have already become disengaged. Although 92% of new employees are establishing commitment, a relatively large fraction of long-term employees have become disengaged.

Sustaining Committed Employees • Offer education that enables new learning. • Create a personalized development plan that fosters a career path. • Consider a mentoring program.

Low-Cost Ways Commitment

to

Build

Employee

Consider the power of "the five I's": • Interesting work. No one wants to do the same boring job over and over, day after day. And while any job will always require some boring, repetitive tasks, everyone should have at least a part of their job be of high interest to them.

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•

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Information. Information is power, and employees want to be empowered with the information they need to know to do their jobs better and more effectively. And, more than ever, employees want to know how they are doing in their jobs and how the company is doing in its business. Open the channels of communication in an organization to allow employees to be informed, ask questions, and share information. Involvement. Managers today are faced with an incredible number of opportunities and problems and, as the speed of business continues to increase dramatically, the amount of time that they have to make decisions continues to decrease. Involving employees in decision making, especially when the decisions affect them directly, is both respectful and practical. Those closest to the problem typically have the best insight as to what to do. As you involve others, you increase their commitment and ease in implementing new ideas or change. Independence. Few employees want their every action to be closely monitored. Most employees appreciate having the flexibility to do their jobs as they see fit. Giving people latitude increases the chance that they will perform as you desire - and bring additional initiative, ideas, and energy to their jobs. Increased visibility. Everyone appreciates getting credit when it is due. Occasions to share the successes of employees with others are almost limitless. Giving employees new opportunities to perform, learn, and grow as a form of recognition and thanks is highly motivating for most people.

Summary and Conclusion This report has presented a review of the current thinking about defining and creating employee commitment, which is an evolving topic currently receiving considerable attention. It has been identified as a multi-dimensional concept which has important impacts on an organisation through its effects on employee performance, turnover and absence, and via its influence on customer attitudes to the bottom line. Commitment can be divided into five components, each of which are created by different factors. These are defined as follows: Affiliative: The compatibility of the employee’s and the organisation’s interests and values. Associative: The employee’s perception of belonging to the organisation. Moral: The sense of mutual obligation between the employee and the organisation. Affective: The feeling of job satisfaction experienced by the employee.

Structural: The belief that the employee is engaged in a fair economic exchange. Affective commitment is the form that has most potential benefit for an organisation, as it directly influences how employees perform their jobs. This form of commitment is increasingly referred to as ‘engagement’ among HR professionals and is the form most usually measured by organisations. Organisations that take positive steps to create commitment appreciate that it is a vital component of business success. They recognise that it can take various forms and are able to concentrate on the ones that are relevant to themselves. Commitment is a twoway process which the organisation itself has to initiate. This can be done by creating a clear employer brand and group identity so that the right people are recruited. The organisation then needs to ensure that the values of its brand image are delivered, by treating employees fairly and maintaining trust. Defining and Creating Employee Commitment: a review of current research 13 Job satisfaction is an important component of commitment, but should not be perceived as equivalent to it. Commitment has more positive outcomes for the organisation in terms of employee performance. Job satisfaction can be promoted by making work as enjoyable as possible, providing growth and development opportunities and making provisions for staff to assist them in balancing their work and personal lives. Once established, commitment has to be maintained by ensuring staff have clear roles and responsibilities, and an understanding of what is required of them in their jobs. Good communication and openness throughout the organisation is vital, especially in times of change. The role of line managers should be recognised and positively supported, as it is a vital component in the creation and maintenance of employee commitment.

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