How to improve employee loyalty in a rapidly changing and digitized workplace Hult Blog

In today’s fast-moving and highly competitive business environment, organizations are looking for new ways to implement and utilize resources strategically to increase organizational value and to achieve a firm-level competitive advantage. However, due to the changing nature of work, the role human resources play in the value creation process of organizations is changing.  There is an increasing war for talent—especially for those who have the skillset and the mindset to succeed in today’s workplace. Strategic talent management is therefore a determining factor for organizational effectiveness and for ensuring one’s competitiveness in the marketplace. An organization’s ability to  attract  and  retain talent  is becoming increasingly important for its survival. At the same time, there is a decreasing sense of loyalty from both the employer’s side as well as from the employee’s side in todays dynamic business environment. Organizational practices, which were once effective in attracting and engaging employees, are steadily losing ground and need to be re-evaluated and re-tested to maintain effectiveness in today’s changing nature of work.  Investigating the psychological mechanisms underlying work attachment, such as the concept of  organizational commitment, can provide powerful insights on how to better connect and engage employees in a rapidly changing work environment. Employer loyalty is dead And so is employee loyalty What is organizational commitment? Organizational commitment has been defined as a  psychological bond that one feels towards an organization. Its a driving force of work behavior. Commitment towards the organization can come in different forms, such as an  emotional attachment  one feels toward the organization reflecting one’s desire to work for a company. Commitment towards the organization can also be  calculative  by nature, which means that you decide to stay in the organization because you have been with the company for so many years and have accrued certain benefits†¦ or maybe because you see no better alternative elsewhere. Finally, people also feel  morally committed  to stay with an organization. Maybe because of their personal work values or because they feel that staying is a requirement to pay back received benefits from the organization.  Positive work exchanges within the employee–employer relationship help develop commitment toward the organization.  This is often referred to as the  social exchange  basis of attachment. So, what do these exchanges reflect within the employee–employer relationship? When an  employee provides his or her time and effort to the organization, it is expected to be reciprocated with transactional and relational commodities such as pay, recognition, and support from the organization.  This exchange relationship is governed through something that is called the  psychological contract, which evaluates if mutual obligations are being met. The outcome of  a perceived  balanced  and  fair  psychological contract is commitment towards the organization. The importance of organizational commitment for value creation Research has repeatedly shown that employees with high organizational commitment exert more effort on the job, are less sick and absent from work, are more willing to stay with their employer, and contribute to the social and psychological environment of the organization. Enhancing organizational commitment is important to improve productive work behaviors that have a positive impact on organizational performance. Dynamic forces are shaping where and how we work. The usage of autonomous devices is transforming mobility and the transportation of goods.  Workplaces are transcending the physical premises of organizations.  Robotization is rapidly replacing manual production and precision work. And digitalization is facilitating work interactions and communication across the globe.  We no longer all share  the same workplace, the same teams, the same time zones, or even the same working conditions or contracts. Its clear that the  nature of work is changing  and  more effort from the individual employee is expected to adapt to this change. Its becoming increasingly difficult for organizations to provide work environments that are perceived as balanced, fair, and supportive, which is so fundamental to the development of organizational commitment. So, the main  leadership question  for many organizations today is, How do we create a committed workforce in a dynamic workplace? Creating a more durable mindset of commitment though  IDENTITY It is clear from the above that organizational commitment, based on social exchanges alone, is not strong enough to connect and engage employees in todays workforce. A new attachment mechanism needs to be sought that is robust enough to connect people in a rapidly changing and digitalized work environment. My research over the past six years has investigated the psychological mechanisms underlying work attachment to discover new ways of enhancing organizational commitment in todays workplace. This led to the creation of the  Employee Connect Model (ECM). This model uses  social identity  as a key attachment mechanism to foster organizational commitment. Social identity within organizations is often referred to as  organizational identification  and posits that a sense of oneness and belongingness is created through one’s identification with the organization. This means that being a member of an organization triggers individual cognitions of self and allows for the internalization of group values, norms, and other characteristics into one’s self-concept. And this in turn  promotes individual behaviors favoring the organization. High identification with an organization leads to a sense of belongingness, pride, self-esteem, and a sense of security in uncertain times. Attachment through identification is very resilient as it shapes the identity of the employee and influences individual perceptions and work behaviors (e.g. to benefit the welfare of the organization). Research findings suggest that ECM is able to effectively attach and engage employees working in shorter and more flexible work agreements, virtual and r emote work setups, and multi-cultural teams. ECM, based on both social exchange and social identity processes, helps to understand how to foster employee attachment in a rapidly changing work environment and promises to be a more resilient model of organizational commitment. How do you use  IDENTITY  at work to build an attached and engaged workforce? ECM provides practical insights and tools for engaging and connecting employees in todays workplace. Here follow a couple of practical examples of how to apply ECM at work: Organizational values identity leadership Values are core to organizations—just as they are core to human beings. Values are a cognitive representation of our needs and beliefs. To a strong extent they influence individual behavior, judgement, and decision making. Organizational values and culture are often referred to as the glue that keeps people together and should be reflected throughout the organization: policies, procedures, reward systems, stories, customer orientation. Leaders and managers play a pivotal role in facilitating this alignment. As an organizational leader, it is absolutely vital to be able to communicate the values and the purpose of the organization, which helps followers connect and engage and  understand the why? behind work. Identity leadership is pivotal in connecting employees to a common goal and purpose, while at the same time allowing for individual identities to flourish. Identity leadership helps connect employees to core values, organizational norms, meaningful work, brand, and reputation. To be able to do this, findings from this research indicate that leaders need to develop a strong  reflective mindset  to help understand who they are and how they impact others, and also understand the different identities at work and how these can be influenced and leveraged to benefit the overall organization. In other words,  leaders need to develop behavioral and psychological skills  to effectively lead themselves and their organizations in a rapidly changing environment. Empirical research shows that by leveraging individual and group identities, leaders and managers will be in a better position to connect people working in and outside the organization, help people shape reality, and finally drive behavior in a common direction. Job roles Everyone has multiple identities. The different identities we show throughout the day (e.g. father, team leader, entrepreneur, environmentalist, religious) affects our thinking and behavior in different ways. This is the same at work. Work identities can have a strong effect on work attitudes and behaviors. Being called a Barista instead of a Coffee Maker can significantly affect how you behave at work and interact with customers, and even who you associate with. It also helps you to understand who is and is not a Barista, which creates group promoting and protective behaviors (in versus out group). Triggering individual and group identities at work can help enhance a WE perspective on the job, which enhances the social and psychological environment of the organization and improves task performance and employee wellbeing. My research shows that strong social identities at work motivate individual employees to favor group goals over personal goals, benefiting the welfare of the organi zation. Organizational on-boarding One of the key findings from my research is the susceptibility of employees to new work experiences or uncertain conditions, such as when starting a new job or being promoted. These uncertain work experiences activate work cognitions that are sensitive to both social exchange- and social identity-based work experiences. These findings indicate that formative work experiences or work socialization, such as the on-boarding of new employees, should be carefully designed. Effective employee on-boarding is fundamental in developing strong identity- and exchange-based relationships that promote attachment and engagement behaviors. Additional attention to employee experiences in the beginning can have long-lasting positive effects to organizational performance. Conclusion Effectively applying the Employee Connect Model, based on both social exchange and social identity, provides a more resilient approach to commitment development in the workplace. ECM helps organizational leaders and (HR) managers effectively attract, engage, and retain talent in a rapidly changing and highly competitive business environment. Research findings provide valuable insights into how to influence the employee-employer relationship from a psychological perspective and inform how to actively steer employee and organizational performance through identity leadership. More like this Watch Alis TEDx talk on Reflective Mindset Why is social media so addictive? Hult Rotation offers you a chance to study in a truly global way. Our rotation program allows you to study and be immersed in some of the finest cities in the world. 📠¸: @jasminmanzano . Hult Rotation offers you a chance to study in a truly global way. Our rotation program allows you to study and be immersed in some of the finest cities in the world. 📠¸: @jasminmanzano . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021 Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021"> During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . Happy New Year, Hultians! . Happy New Year, Hultians! .