This document discusses building employee commitment, especially during turbulent times. It finds that the number one factor influencing employee commitment is the effectiveness of individual leaders. While employees often say they want less work, what truly builds their satisfaction and engagement are challenging assignments that allow them to make significant contributions. The most impactful leadership behavior for improving commitment is inspiring and motivating others to high levels of effort and performance. Regular assessments that focus on strengths as well as weaknesses, coupled with local grassroots efforts, can help increase commitment levels across an organization.

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

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

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

23. Building Employee Commitment in Your Organization

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