Commitment: 4 ways to Retain my Employees

In an increasingly fast-paced and volatile world, also known as the BANI World, the topic of commitment becomes even more significant as it addresses one of HR's main challenges: reducing turnover. Commitment is a concept that describes the attachment of employees to the organization. In this blog post, we will delve into organizational commitment, examine its definitions and interpretations, shed light on its value and positive effects on employees and companies, and present four effective strategies to promote commitment. This post aims to provide a profound understanding of commitment and highlight its relevance in everyday organizational life.

What is Organizational Commitment?

The Definition

Organizational commitment refers to the extent to which employees identify with and feel attached to their organization. It is a psychological state that characterizes the relationship between employees and the organization, influencing their willingness to stay (Meyer [&] Allen, 1991). There are different perspectives and interpretations of organizational commitment. Some researchers see it as a sense of loyalty to the company, while others interpret it as an employee's willingness to exert effort for the organization and support its goals (Meyer and Allen, 1997). However, the most influential model is the Three-Component Model (TCM) by Meyer and Allen (1991).

The Concept of Organizational Commitment

The concept of organizational commitment was first introduced in the 1960s. The three-component model by Meyer and Allen (1991) consolidates various research streams on commitment into a single model and is the most extensively studied and well-known concept of organizational commitment. The core statements of the dimensions of the TCM are as follows:

Affective Commitment: This refers to the emotional attachment that employees have towards their organization. They feel that their goals and values align with those of the organization and are willing to dedicate themselves to it.

Continuance Commitment: This pertains to the perception of the costs associated with leaving the organization. Employees with high continuance commitment remain with the organization due to the otherwise high expected costs.

Normative Commitment: This relates to the sense of moral obligation to stay with the organization. Employees with high normative commitment feel obligated to remain with the organization, regardless of their satisfaction or engagement.

In summary, it can be said that affective commitment describes the desire to stay, continuance commitment is the willingness to stay for rational reasons, and normative commitment because they are supposed to (Allen [&] Meyer, 1990).

What are Benefits of Organizational Commitment?

Organizational commitment is associated with a range of performance indicators.

Employees with a strong continuance commitment tend to stay longer in the organization, which in turn can reduce turnover and associated costs (Meyer [&] Allen, 1997). Employees with a high normative commitment to the organization are more likely to follow organizational rules and norms and act ethically (Wiener, 1982). These two facets of commitment may initially sound good as they can strengthen retention and compliance. However, these facets are not proactive drivers for topics such as innovation or enthusiasm to work for this organization. In the end, job performance is likely to be reduced to minimal requirements.

Therefore, affective commitment of employees is all the more crucial. A strong emotional attachment to the organization is also associated with lower willingness to quit and turnover, but at the same time, it also shows the strongest positive relationships with other performance indicators. High affective commitment promotes job performance and organizational citizenship behavior, and reduces perceived stress and conflicts between work and personal life (Meyer et al., 2002). Thus, affective commitment not only supports retention, but also a healthy and proactive job performance beyond that. Therefore, promoting affective commitment is often seen as a key element for the sustainable development of a company.

4 Ways to Increase Commitment

There are various levers to promote organizational commitment, especially affective commitment. Studies show that it is less about personal characteristics and more about working conditions and relationships. Here are four possible approaches:

1.Provide Meaning:

An inspiring vision is the key to increasing meaning in one's work and commitment to the company (Judge et al., 2001). Companies should clearly communicate where the organization wants to go and why. Leaders should then be empowered to translate this vision and mission into team and employee contributions. This way, employees can be inspired and emotionally connected to the company and its vision, in line with a transformational leadership style (cf. Meyer et al., 2002; Bass [&] Riggio, 2006).

2.Provide Identification:

A strong corporate culture is another important lever. When employees can see themselves as part of the bigger picture, it can strengthen their identification with the organization. Shared prosocial values and cultural topics, such as perceived fairness and communication, are fundamental elements of a strong corporate culture and can sustainably enhance employees' affective commitment (cf. Meyer et al., 2002; Abbott, White, Charles, 2005).

3.Provide Appreciation:

Another way to promote affective commitment, in particular, is to encourage respectful collaboration and mutual support. How leaders and employees interact with each other is crucial in determining whether they feel connected to the company (cf. Meyer et al., 2002). Offering help when needed, setting common goals, and working constructively together are important initial steps.

4.Provide Perspective:

As the fourth step to foster affective commitment, opportunities for personal and professional development should be created (Meyer et al., 2002). In regular feedback conversations between leaders and employees, areas for development should be identified and actions agreed upon as well as monitored together. It is not about climbing the outdated career ladder, but rather about expanding competencies and enlarging areas of responsibility - this can lead to vertical as well as horizontal development within the organization.

Summary

Organizational commitment - an outdated concept? Definitely not. In times of constant shortage of skilled workers, it is even more important to retain employees. While remote and hybrid work environments are considered ways to retain employees, they require stronger measures to create a sense of purpose and identification, promote collaboration and perspectives. Therefore, it is more important than ever to proactively engage and involve employees, and let them participate in shaping the organization.

References

Abbott, G. N., White, F. A., [&] Charles, M. A. (2005). Linking values and organizational commitment: A correlational and experimental investigation in two organizations.[nbsp]Journal of Occupational and Organizational Psychology, 78, 531–551.

Allen, N. J., [&] Meyer, J. P. (1990). The measurement and antecedents of affective, continuance, and normative commitment to the organization.[nbsp]Journal of Occupational Psychology, 63(1), 1–18.

Bass, B. M., [&] Riggio, R. E. (2006).[nbsp]Transformational leadership[nbsp](2nd ed.). Lawrence Erlbaum Associates Publishers.

Judge, T. A., Thoresen, C. J., Bono, J. E., [&] Patton, G. K. (2001). The job satisfaction–job performance relationship: A qualitative and quantitative review.[nbsp]Psychological Bulletin, 127(3), 376–407.

Meyer, J. P., [&] Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1(1), 61-89.

Meyer, J. P., [&] Allen, N. J. (1997).[nbsp]Commitment in the workplace: Theory, research, and application. London: SAGE Publications, Inc.

Meyer,[nbsp]J.P., Stanley,[nbsp]D.J., Herscovitch,[nbsp]L., [&] Topolnytsky, L. (2002). Affective, Continuance, and Normative Commitment to the Organization: A Meta-analysis of Antecedents, Correlates, and Consequences. Journal of Vocational Behavior, 61(1),[nbsp]20-52.

Wiener, Y. (1982). Commitment in Organization: A Normative View. Academy of Management Review, 7, 418-428.