Description
We therefore focus on the more important issue of employee commitment. Enhance Management's approach to measuring employee commitment helps you understand how committed your employees are - and the extent to which they are aligned with organisational objectives.
Seemingly committed behaviour itself is not enough. Enhance Management's approach therefore differentiates between those who appear committed and those who are actually attitudinally and emotionally committed to the organisation.
Why is Commitment Important?
Commitment is a chief determinant of a number of desirable employee behaviours. Specifically, these include an employee's likelihood to:
Stay at the company
Recommend the company as a place to work
Do their best work for the company
Be more willing to engage in extra-work roles for the company.
These behaviours benefit the organisation's performance in several ways, including reduced costs associated with undesirable turnover, greater productivity and positive word of mouth.
In addition, however, employee commitment has direct benefits and uncommitted employees can have direct costs to the organisation.
To replace an average employee on a salary of $30,000:
Recruitment costs are estimated at around $4,750
Training costs can be upwards of $2,000
Performance differences between a new and an experienced staff member are likely to amount to around $6,000 in the first year.
The more experienced the staff member, the bigger the impact on the bottom line. Westpac calculated that, in total, it costs $40,000 to replace a staff member with 8 years' experience, and $60,000 to replace a senior manager.
However, the cost is not just in employee turnover, employees also have the added choices of apathy, obstruction or absenteeism.
How Do We Measure Employee Commitment?
Enhance Management's approach is based on the latest academic and practitioner research into employee commitment. From this we have developed an employee commitment construct, which provides a single figure Employee Commitment Index. This can be used to track over time, as well as to segment different parts of the organisation by commitment levels.
Enhance Management's approach also measures Commitment Outcomes - the positive behaviours and attitudes we know are linked to employee commitment.
Just as importantly, however, we measure the Commitment Impacts - the crucial themes which constitute the framework within which employees think about their relationship to the company.
In this way we can provide not only an understanding of employee commitment - but also an understanding of which aspects of the employee relationship most impact commitment. This provides powerful and actionable information for managers.
An example of our Commitment Impact Modelling is provided below:
When combined with current ratings given by employees, this Commitment Impact Modelling can provide easy-to-understand diagnostic information for managers:
Enhance Management has a wealth of experience working with HR teams across a range of industries to develop tailored and actionable Employee Commitment research programmes which focus on the core needs of your business and your people.
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