Post on 13-Jan-2015
description
Building Employee Commitment
During Turbulent Times
Scott EdingerVice President of SalesZenger Folkman
January 28, 2010
© 2010 Zenger Folkman Company. All Rights Reserved. 2
What is Employee Commitment?
Employee Commitment
= Satisfaction Engagement Confidence+ +
With thethe organization
Would recommendto a friend
Rarely think about quitting
Willing to go theextra mile
Confidentthis organizationwill be successful
© 2010 Zenger Folkman Company. All Rights Reserved. 3
Poll #1
• In your opinion, how much impact does employee commitment have on business results in your organization?
– No impact
– A small impact
– Moderate impact
– Substantial Impact
© 2010 Zenger Folkman Company. All Rights Reserved. 4
Employee, Customer Satisfaction, Profit Connection
EmployeeSatisfaction
StoreProfits
CustomerSatisfaction
For every 5-point improvement in employee satisfaction,customer satisfaction goes up 1.3%, which in turn
increases revenue growth .5%.
Sears Study
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What is the Impact of Employee Commitment?
344139.95
252774.97
112709.56
0
50000
100000
150000
200000
250000
300000
350000
Low Medium High
Employee CommitmentForest Products Company
*Ex
po
su
re H
ou
rs A
ve
rag
e
*Length of time employees are exposed to an unsafe working condition
© 2010 Zenger Folkman Company. All Rights Reserved. 6
Profitability by Employee Commitment
28
43
59
0
10
20
30
40
50
60
70
Low Moderate High
Employee CommitmentResults from a Mortgage Bank
Me
an
*N
et P
rofi
t In
de
x
*Net Profit Index shows the range in profitability with 0 being no profit
© 2010 Zenger Folkman Company. All Rights Reserved. 7
Turnover by Employee Commitment
21
16
13
0
5
10
15
20
25
Low Moderate High
Employee CommitmentResults from an Insurance Company
Vo
lun
tary
Tu
rno
ver
© 2010 Zenger Folkman Company. All Rights Reserved. 8
Strong Relationship Between Employee Commitment and Bottom Line Results
© 2010 Zenger Folkman Company. All Rights Reserved. 9
What Factor Influences Employee Commitment Most?
• Effective Communication and Listening• Clear Strategy• High Ethics & Integrity• Leadership Effectiveness• Effective Collaboration and Teamwork• Clear Feedback on Performance• Learning and Development• High Productivity/Efficiency• Innovation• Ability to Change• Strong Sense of Individual Accountability• Effective Customer Service
© 2010 Zenger Folkman Company. All Rights Reserved. 10
Poll # 2
• Which of the factors listed below have the greatest influence on employee commitment?
– Effective Communication and Listening
– Clear Strategy
– High Ethics & Integrity
– Leadership Effectiveness
– Effective Collaboration and Teamwork
– Clear Feedback on Performance
– Learning and Development
– High Productivity/Efficiency
– Innovation
– Ability to Change
– Strong Sense of Individual Accountability
– Effective Customer Service
© 2010 Zenger Folkman Company. All Rights Reserved. 11
The # 1 Factor is…
The Effectiveness of Individual Leaders
© 2010 Zenger Folkman Company. All Rights Reserved. 12
0
10
20
30
40
50
60
70
80
1st -9th
10th -19th
20th -29th
30th -39th
40th -49th
50th -59th
60th -69th
70th -79th
80th -89th
90th -100th
Em
plo
yee
Co
mm
itm
ent
Per
cen
tile
Leadership Effectiveness Percentile
Leadership Effectiveness vs. Employee Satisfaction/Commitment
Based on 7391 Leaders
Poor LeadersCreate
Dissatisfaction
Good Leaders Have an
Adequate Impact
Great LeadersMake a Great
Difference
© 2010 Zenger Folkman Company. All Rights Reserved. 13
Leadership Effectiveness vs. Employee Commitment / Engagement
0
10
20
30
40
50
60
70
80
90
Bottom 10% Next 25% Middle 30% Next 25% Top 10%
Em
plo
yee
Co
mm
itm
ent
Per
cen
tile
Leadership Effectiveness Percentile
Results from a large US Bank
© 2010 Zenger Folkman Company. All Rights Reserved. 14
Leadership Effectiveness vs. Employee Commitment / Engagement
0
10
20
30
40
50
60
70
80
90
Bottom 10% Next 25% Middle 30% Next 25% Top 10%
Em
plo
yee
Co
mm
itm
ent
Per
cen
tile
Leadership Effectiveness Percentile
Results from 361 managers in Spain
© 2010 Zenger Folkman Company. All Rights Reserved. 15
Leadership Effectiveness vs. Employee Commitment / Engagement
0
10
20
30
40
50
60
70
80
90
Bottom 10% Next 25% Middle 30% Next 25% Top 10%
Em
plo
yee
Co
mm
itm
ent
Per
cen
tile
Leadership Effectiveness Percentile
Results from 727 managers in the UK
© 2010 Zenger Folkman Company. All Rights Reserved. 16
Leadership Effectiveness vs. Employee Commitment / Engagement
0
10
20
30
40
50
60
70
80
90
1st - 19th 20th - 39th 40th - 59th 60th - 79th 80th - 100th
Em
plo
yee
Co
mm
itm
ent
Per
cen
tile
Leadership Effectiveness Percentile
Results from the United Arab Emirates
© 2010 Zenger Folkman Company. All Rights Reserved. 17
Leadership Effectiveness vs. Employee Commitment / Engagement
0
10
20
30
40
50
60
70
80
90
1st - 19th 20th - 39th 40th - 59th 60th - 79th 80th - 100th
Em
plo
yee
Co
mm
itm
ent
Per
cen
tile
Leadership Effectiveness Percentile
Results from a Financial Services Company in India
© 2010 Zenger Folkman Company. All Rights Reserved. 18
Do some leadership behaviors have more impact on employee
commitment than others?
© 2010 Zenger Folkman Company. All Rights Reserved. 19
Cluster A• Is trusted by all members of the
work group.
• Stays in touch with issues and concerns of individuals in the work group.
• Provides coaching and acts as a mentor to others.
• Balances getting results with a concern for others needs.
• Is careful to honor commitments and keep promises.
Cluster B• Inspires others to high levels of
effort and performance.
• Energizes people to achieve exceptional results.
• Creates an atmosphere of continual improvement in which self and others push to exceed the expected results.
• Provides others with a definite sense of direction and purpose.
• Is skillful at getting people to stretch for goals that go beyond what they originally thought possible.
Poll # 3
Which cluster of leadership behaviors would have the greatest impact on improving Employee Commitment?
© 2010 Zenger Folkman Company. All Rights Reserved. 20
Poll # 4
• How many of you feel overwhelmed in your current job?
– I am not overwhelmed
– I am a little bit overwhelmed
– I am very overwhelmed
© 2010 Zenger Folkman Company. All Rights Reserved. 21
The Paradox of Employee Commitment
• But, the experiences that do the most to build satisfaction, engagement and confidence in an organization are:– Challenging assignments
– Accomplishing difficult tasks
– Making significant contributions
– Making the impossible – possible
• If you ask people what would be most beneficial to them personally, they frequently choose: – A break
– Less work
– A vacation
– A little beach time
© 2010 Zenger Folkman Company. All Rights Reserved. 22
Inspires and Motivates Others
What employees need• Clear direction
• A distinctive strategy
• Targeted goals and objectives
• Rewards and recognition
• Respect/fair treatment
• Involvement in decisions
• Effective training
• Opportunities for development
• Efficient processes
• Communication
• …
What makes a big difference• Inspiring them to high levels of
effort and performance
• Energizing them to achieve significant results
What is the # 1 Behavior that Leverages Employee Commitment?
How does a person do that?
© 2010 Zenger Folkman Company. All Rights Reserved. 23
5257 59 60
6467 67 67 66 67
0
10
20
30
40
50
60
70
80
90
100
Year 1 Year 2 Year 3 Year 4 Year 5
Actual Desired
Building Employee Commitment in Your Organization
© 2010 Zenger Folkman Company. All Rights Reserved. 24
Key 1—Regular Assessments of Progress
• Establish a rhythm– Every year
– Every 18 months
– Every two years
• Never cancel the assessment because of difficult circumstances– Often the assessment is a key factor in a
turnaround
– Employees are much more resilient that most people believe
© 2010 Zenger Folkman Company. All Rights Reserved. 25
Key 2—Measure the Right Things
• If there is a clear connection between the assessment and day-to-day problems faced by both senior managers and supervisors, then they see how responding to the assessment will help them solve problems.
Not the Shopping Cart Clear Focus
© 2010 Zenger Folkman Company. All Rights Reserved. 26
Key 3—Manage Expectations
• Asking employees for their opinions generates expectations
Assessment Item Expectation
I am able to balance my work and personal life.
Management is willing to help me to balance my work life.
I am satisfied with my pay. If I say I’m dissatisfied, then you will give me more pay.
© 2010 Zenger Folkman Company. All Rights Reserved. 27
Poll #5
• Which demographic is the best predictor of employee commitment?
– Age
– Gender
– Position
– Tenure
– Work Group
© 2010 Zenger Folkman Company. All Rights Reserved. 28
Key 4—All Politics Are Local
Crime is DownIn my Neighborhood
In order to change employee commitment, in addition to some broad organizational changes,
there needs to be a focus at the grass roots – each work group.
Crime is DownIn the Nation
© 2010 Zenger Folkman Company. All Rights Reserved. 29
What Makes an Organization Successful?
A
SuperiorExecution
B
Avoiding Mistakes
C
Both areCritical
© 2010 Zenger Folkman Company. All Rights Reserved. 30
Key 5—Focus on Building Strengths as well as Fixing Weaknesses
39
72
8287 89 92
0
20
40
60
80
100
0 1 2 3 4 5
Number of Strengths
Ov
era
ll O
rga
niz
ati
on
al
Eff
ect
ive
ne
ss
Pe
rcen
tile
* Results from a Forest Products Company
© 2010 Zenger Folkman Company. All Rights Reserved. 31
Summary
• Highly committed employees can have a substantial impact on organizational success
• The number 1 factor that drives the commitment of employees is the effectiveness of leaders
• Challenging assignments and accomplishing difficult tasks increases the commitment of employees
• Inspiring and motivating others is the number 1 leadership behavior that impacts employee commitment
• Remember – all politics are local – work from the grass roots to improve the commitment of employees
© 2010 Zenger Folkman Company. All Rights Reserved. 32
Thank You for Joining Us!
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