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Building Employee Commitment During Turbulent Times Scott Edinger Vice President of Sales Zenger Folkman January 28, 2010
What is Employee Commitment? Employee Commitment = Satisfaction Engagement Confidence + + With the the organization Would recommend to a friend  Rarely think about  quitting Willing to go the extra mile Confident this organization will be successful
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
Employee, Customer Satisfaction, Profit Connection Employee Satisfaction Store Profits Customer Satisfaction For every 5-point improvement in employee satisfaction, customer satisfaction goes up 1.3%, which in turn increases revenue growth .5%. Sears Study
What is the Impact of Employee Commitment?  Employee Commitment Forest Products Company *Exposure Hours Average *Length of time employees are exposed to an unsafe working condition
Profitability by Employee Commitment  Employee Commitment Results from a Mortgage Bank Mean *Net Profit Index *Net Profit Index shows the range in profitability with 0 being no profit
Turnover by Employee Commitment  Employee Commitment Results from an Insurance Company Voluntary Turnover
Strong Relationship Between Employee Commitment and Bottom Line Results
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
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
The # 1 Factor is… The Effectiveness of  Individual Leaders
Leadership Effectiveness vs. Employee Satisfaction/Commitment  Employee Commitment Percentile Leadership Effectiveness Percentile Based on 7391 Leaders Poor Leaders Create Dissatisfaction Good Leaders  Have an  Adequate Impact  Great Leaders Make a Great Difference
Leadership Effectiveness vs. Employee  Commitment / Engagement Employee Commitment Percentile Leadership Effectiveness Percentile Results from a large US Bank
Leadership Effectiveness vs. Employee  Commitment / Engagement Employee Commitment Percentile Leadership Effectiveness Percentile Results from 361 managers in Spain
Leadership Effectiveness vs. Employee  Commitment / Engagement Employee Commitment Percentile Leadership Effectiveness Percentile Results from 727 managers in the UK
Leadership Effectiveness vs. Employee  Commitment / Engagement Employee Commitment Percentile Leadership Effectiveness Percentile Results from the United Arab Emirates
Leadership Effectiveness vs. Employee  Commitment / Engagement Employee Commitment Percentile Leadership Effectiveness Percentile Results from a Financial Services Company in India
Do some leadership behaviors  have more impact on employee commitment than others?
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?
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
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
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? Inspires and Motivates Others How does a  person do that?
Building Employee Commitment in Your Organization
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
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
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.
Poll #5 Which demographic is the best predictor of employee commitment? Age Gender Position Tenure Work Group
Key 4—All Politics Are Local 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 Down In the Nation Crime is Down In my Neighborhood
What Makes an Organization Successful? A Superior Execution B Avoiding  Mistakes  C Both are Critical
Key 5—Focus on Building Strengths  as well as Fixing Weaknesses Number of Strengths Overall Organizational Effectiveness Percentile * Results from a Forest    Products Company
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
Thank You for Joining Us! For more on this topic, complete the brief survey at the end of the webinar and we’ll send you a copy of the white paper entitled Leadership Development 6.0.  If you’d like more from Zenger Folkman, sign up for our Leadership Resource Center at  www.zengerfolkman.com/login.html .  For the latest on Zenger Folkman, don’t forget to follow us on Facebook, Twitter or on our blog! You can find links on our home page at  www.zengerfolkman.com .

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Edinger - Building employee commitment

  • 1. Building Employee Commitment During Turbulent Times Scott Edinger Vice President of Sales Zenger Folkman January 28, 2010
  • 2. What is Employee Commitment? Employee Commitment = Satisfaction Engagement Confidence + + With the the organization Would recommend to a friend Rarely think about quitting Willing to go the extra mile Confident this organization will be successful
  • 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
  • 4. Employee, Customer Satisfaction, Profit Connection Employee Satisfaction Store Profits Customer Satisfaction For every 5-point improvement in employee satisfaction, customer satisfaction goes up 1.3%, which in turn increases revenue growth .5%. Sears Study
  • 5. What is the Impact of Employee Commitment? Employee Commitment Forest Products Company *Exposure Hours Average *Length of time employees are exposed to an unsafe working condition
  • 6. Profitability by Employee Commitment Employee Commitment Results from a Mortgage Bank Mean *Net Profit Index *Net Profit Index shows the range in profitability with 0 being no profit
  • 7. Turnover by Employee Commitment Employee Commitment Results from an Insurance Company Voluntary Turnover
  • 8. Strong Relationship Between Employee Commitment and Bottom Line Results
  • 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
  • 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
  • 11. The # 1 Factor is… The Effectiveness of Individual Leaders
  • 12. Leadership Effectiveness vs. Employee Satisfaction/Commitment Employee Commitment Percentile Leadership Effectiveness Percentile Based on 7391 Leaders Poor Leaders Create Dissatisfaction Good Leaders Have an Adequate Impact Great Leaders Make a Great Difference
  • 13. Leadership Effectiveness vs. Employee Commitment / Engagement Employee Commitment Percentile Leadership Effectiveness Percentile Results from a large US Bank
  • 14. Leadership Effectiveness vs. Employee Commitment / Engagement Employee Commitment Percentile Leadership Effectiveness Percentile Results from 361 managers in Spain
  • 15. Leadership Effectiveness vs. Employee Commitment / Engagement Employee Commitment Percentile Leadership Effectiveness Percentile Results from 727 managers in the UK
  • 16. Leadership Effectiveness vs. Employee Commitment / Engagement Employee Commitment Percentile Leadership Effectiveness Percentile Results from the United Arab Emirates
  • 17. Leadership Effectiveness vs. Employee Commitment / Engagement Employee Commitment Percentile Leadership Effectiveness Percentile Results from a Financial Services Company in India
  • 18. Do some leadership behaviors have more impact on employee commitment than others?
  • 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?
  • 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
  • 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
  • 22. 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? Inspires and Motivates Others How does a person do that?
  • 23. Building Employee Commitment in Your Organization
  • 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
  • 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
  • 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.
  • 27. Poll #5 Which demographic is the best predictor of employee commitment? Age Gender Position Tenure Work Group
  • 28. Key 4—All Politics Are Local 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 Down In the Nation Crime is Down In my Neighborhood
  • 29. What Makes an Organization Successful? A Superior Execution B Avoiding Mistakes C Both are Critical
  • 30. Key 5—Focus on Building Strengths as well as Fixing Weaknesses Number of Strengths Overall Organizational Effectiveness Percentile * Results from a Forest Products Company
  • 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
  • 32. Thank You for Joining Us! For more on this topic, complete the brief survey at the end of the webinar and we’ll send you a copy of the white paper entitled Leadership Development 6.0. If you’d like more from Zenger Folkman, sign up for our Leadership Resource Center at www.zengerfolkman.com/login.html . For the latest on Zenger Folkman, don’t forget to follow us on Facebook, Twitter or on our blog! You can find links on our home page at www.zengerfolkman.com .

Editor's Notes

  • #13: We will change these builds to first introduce the axis’, then populate the data 3 deciles at a time. I think the extra words on the right detract from the speaker and it will be better to have Joe simply talk about these things.
  • #33: We appreciate your participation. We are a feedback kind of place so please let us know in our brief survey what you found useful and what you want more from us so we can continue working hard to bring value to you.