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© Copyright 2000 Rogers Media. The following article first appeared in the September 2000 edition of
BENEFITS CANADA magazine.
Commitment@work
The relationship between organizations and employees is evolving. It's time for employers to
reassess their commitment to the workforce.
By Marilynne Madigan and Kathryn Dorrell
Organizations have adapted to manufacturing and high tech breakthroughs, re-engineered their processes and
capitalized on mergers and rightsizing. Now, it's time to invest the same amount of time and energy in
building a committed workforce.
The business environment has been ripe with change. This factor combined with a buoyant economy has
resulted in an employees' market, in which workers are comfortable with the concept of shopping around for
new employers more frequently than they ever have before. They aren't short of options, either.
Clearly, the relationship be-tween employers and employees has evolved significantly. But present business
practices have not kept pace with the changing needs of employees.
While organizations still want their workers to be productive, proud of their organization, and to remain
with them for a reasonable peiod of time, they need to acknowledge that employees also have needs--both as
workersand as individuals. In order for both parties to realize theirobjectives, the commitment contract
between employers and employees must be reinvented.
There is a whole new set of rules for building employee commitment in today's business environment.
Canada@Work 2000, a study by Aon Consulting, looks at the effectiveness of various organizational
practices--from the employee perspective--and acts as a valuable tool which provides insight into
employees' needs while helping organizations assess their accomplishments in the various areas of workplace
commitment.
Conducted with Decima Re-search, this second annual study surveyed 2,007 Canadian employees from diverse
backgrounds and organizations. The Workforce Commitment Index (WCI) measures six behaviours that define
commitment in three areas: productivity, pride and retention. In addition, the survey examines workplace
practices and measures organizational performance in five areas: safety/security; rewards; affiliation;
growth; and work/life harmony.
The first study, conducted in 1999, established a base line WCI of 100, from which to track future
progress. This year's report reveals that there is a moderate improvement in the employee-employer
relationship, as the index moved up slightly to 100.2. Results of the next report, Canada@Work 2001,
available next year, will provide a bigger picture of the direction in which commitment in the workforce is
moving.
WHAT THEY WANT
The most positive results of the study are in the areas of productivity and training. Six out of 10
respondents report that their co-workers improve their skills to make a better contribution to the
organization, while 55% say co-workers make sacrifices to help the group succeed. This reveals that
teamwork is thriving, and is important to both employees and employers. Meanwhile, 78% are happy with the
training provided on the job.
One of the most revealing results of the survey is the fact that employees are not motivated simply by pay.
While 67% of respondents intend to stay with their organization for several years, only 44% would remain on
longer if they were offered asimilar job with slightly higher pay.
Interestingly, 31% feel their organization falls below their expectations in providing pay and benefits
that meet their individual needs. When asked if they would prefer more pay or a greater choice of benefits,
the field was split. Just over half (53%) want more benefits options, while 47% elect for more take-home
pay.
Benefits appear to be increasingly important to employees. The study reveals that 28% regard them as "very
important," while 10% say they are "critical," 24% and 22% identify them as "important" and "somewhat
important," respectively. Only 16% say benefits are not important. In addition, 74% of workers feel their
overall benefits program meets their expectation.
One of the major areas that does need to be addressed, however, is work/life harmony. While over 70% of
respondents say their organization has demonstrated an increased effort over the past year to support its
employees' needs in this area, few workers report that they are actually receiving help in child- and
elder- care--the two areas that are cited most often as being important to work/life balance.
While a lot of attention has been paid to the concept of work/life harmony and organizations generally
recognize its importance, they need to start walking the talk. It's worth their while to do so, considering
29% of respondents rank work/life harmony as being either the most or second-most important factor in
taking a job.
The challenge for employers implementing a work/life harmony culture will be to acknowledge that each
employee has different needs and a one-size- fits-all approach is no longer appropriate.
Indeed, one-third of respondents say that, if given the choice, they would choose to adopt a flexible
benefits program. This option ranks the most popular on a list of employer-paid programs that workers would
like to have. Once again, this demonstrates that employers are looking for a working relationship that
meets their individual and changing needs.
AREAS FOR IMPROVEMENT
Along with work/life harmony, there are several other areas in which organizations can bolster the
employee-employer relationship. When it comes to managing and communicating changes, 41% of respondents
believe their organization performs below expectations, and 41% feel their organization is not developing
effective managers and supervisors.
The topic of safety/security (which incorporates issues such as job security and intimidation from
supervisors) also raises a few red flags. One in five respondents say their company does not meet their
expectations in creating a job environment in which they feel free from fear, intimidation and harassment.
Meanwhile, 15% of respondents indicate that their organization performs below expectations in providing a
safe and secure workplace. The disappointing results in this area could be attributed to the fact that we
have emerged from an era of tremendous change in the work world and an economic downturn, which has
evidently left many employees feeling uncertain about the stability of their jobs.
One way employers can build commitment with employees is to actively recruit them. This is an important
strategy, considering 34% of respondents believe their organization does not demonstrate the importance of
retaining employees. In addition, while 69% would recommend their organization's products or services, only
48% would recommend their organization as a place to work.
Employees want more opportunities to grow within the organization. They are asking for more information and
support to enable them to develop their skills and advance their careers. These two areas are topics of
particular importance to candidates when they interview for a new position. However, the key to building a
competitive advantage based on commitment and im-proved employee retention is to provide this same
information and support to the employees already in the organization.
Overall, today's employees have a strong sense of self-worth--they recognize their value, and they want
their employers to as well. In the years ahead, businesses will discover that their greatest returns will
be earned by making strategic investments in their human capital. Organizations that listen to their
employees and build a committed work- force will have a distinct competitive advantage.
Marilynne Madigan is senior vice-presidentwith Aon Consulting in Toronto.
marilynne_madigan@aonconsulting.aon.ca. Kathryn Dorrell is associate editor with benefits canada.
kdorrell@rmpublishing.com.
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Commitment drivers
The Canada@Work 2000 study identifies six key workplace practices that have a significant influence
on employees' level of commitment, and where organizations are performing poorly.
The study reveals particularly negative responses to the statements listed below. The corresponding figure
represents the percentage of employees who say their organization falls below their expectations in this
area.
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Management recognizes the importance of my personal and family life (26%).
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My organization demonstrates the importance of retaining employees (34%).
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My organization enables me to fully grow my skills (28%).
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I believe I am paid fairly compared to people in similar jobs in other organizations (27%).
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My organization attempts to build a sense of spirit and pride among its employees (36%).
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My organization tries to help me balance my personal needs (28%).
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