1Vance & Renz, LLC

Driving Results with an Engaged and Committed Workforce

Presentation at the Spring Conference of theHarrisburg Area International Public Management AssociationMay 1, 2008

Robert J Vance, PhD

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Engagement Pays Off at Molson Coors Brewing CompanyCompared to non-engaged employees, engaged employees:• were 5X less likely to have a safety incident (average cost = $63)• were 7X less likely to have a lost-time safety incident (average cost = $392)• saved $1,721,760 in safety costs during 2002The difference in performance-related costs of low- vs. high-engagementteams totaled $2,104,823.

Reaping Business Results at CaterpillarResults from employee engagement and commitment initiatives included:• $8.8 million annual savings from decreased attrition, absenteeism and

overtime (European plant)• a 70% increase in output in less than four months (Asia Pacific plant)• a decrease in the break-even point by almost 50% in units/day and a

decrease in grievances by 80% (unionized plant)• a $2 million increase in profit and a 34% increase in highly satisfied

customers (start-up plant)

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Engagement and Commitment

Employee engagement is • performing one’s work duties and roles with

diligence and enthusiasm • contributing extra effort to help one’s employer

achieve its goals

Commitment is• willingness to persist in a course of action• reluctance to change plans, often due to a

sense of obligation

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More about CommitmentOne’s commitments have three aspects:• Rational (thoughtful planning)• Emotional (feeling, attachment)• Behavioral (time and effort)

One has simultaneous multiple commitments to:• Self• Family (spouse, children, parents, siblings)• Friends• Community (religion, school, government)• Employer (commitment to employer must be understood in the context of

one’s other commitments)

Commitments are reciprocal: • Expectation that one’s investments of time, energy, effort, emotion will be

returned (equitable exchange)• Employment is an employer-employee exchange relationship• People are vigilant in monitoring commitment reciprocity

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Employer Practices

Consider the effects on engagement & commitment of:

• Job Enrichment• Recruiting• Employee Selection• Training & Development• Compensation• Performance Management• Person-organization Fit (Placement)

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Employer Practices: Enrichment

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Employer Practices: Recruiting

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Employer Practices: Employee Selection

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Employer Practices: Training & Development

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Employer Practices: Compensation

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Employer Practices: Performance Management

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Employer Practices: Person-organization Fit (Placement)

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Employer Practices: Person-organization Fit (Placement)

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Employer Practices: Person-organization Fit (Placement)

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For more information:

Robert J Vance, PhDVance & Renz, LLC606 Wayland PlaceState College, PA 16903Telephone: 814-231-8155Email: bob@vancerenz.com

SHRM resources:www.shrm.org/foundation/products.asp