The factors that have the strongest influence over work behaviors consist of four categories: Job performance, Organizational Citizenship Behaviors, Absenteeism, and Turnover. These four factors also play a crucial role in the case of SAS Institute, a company renowned for its unique and effective work environment.
Job Performance
Firstly, job performance at SAS Institute is bolstered by opportunities for all employees to engage in new and exciting projects. The company actively works to eliminate obstacles that could hinder effective and motivating work environments, such as outdated machinery, restrictive rules, and unnecessary conferences. This approach aligns with the Job Characteristics Theory, proposed by Hackman and Oldham, which suggests that job design influences work motivation and performance. By removing barriers, SAS enhances the core job characteristics—skill variety, task identity, task significance, autonomy, and feedback—thereby increasing job satisfaction and performance.
Furthermore, SAS Institute’s strategy can be linked to the Expectancy Theory of motivation, which posits that employees are motivated when they believe their efforts will lead to desired performance and rewards. By providing the necessary tools and removing impediments, SAS ensures that employees can perform their tasks effectively, thereby reinforcing their belief in the link between effort and performance.
Organizational Citizenship Behaviors
Secondly, SAS Institute fosters organizational citizenship behaviors (OCBs) among its workers. OCBs refer to voluntary, extra-role activities that are not part of formal job requirements but contribute to the organizational environment. These behaviors are crucial for maintaining a positive workplace culture and enhancing overall organizational performance.
SAS Institute demonstrates a commitment to OCBs by maintaining stable employment conditions, even during economic downturns. Unlike many companies that cut costs and reduce staff during tough times, SAS preserves its budget and salaries, ensuring a consistent and supportive work environment. This approach reflects the principles of Social Exchange Theory, which suggests that employees reciprocate the positive treatment they receive from their employers with loyalty and discretionary effort. The CEO’s promise never to dismiss employees reinforces trust and commitment, further encouraging OCBs.
Additionally, SAS Institute’s policies align with the concept of Psychological Contracts, which are the unwritten expectations between employers and employees. By upholding job security and support, SAS meets these psychological contracts, resulting in increased job satisfaction and organizational commitment, which are critical drivers of OCBs.
Absenteeism
Thirdly, SAS Institute has established a positive environment to minimize absenteeism. The company recognizes that stress and work-life balance significantly affect employees’ attendance and productivity. To address these issues, SAS provides extensive health and wellness programs, including sports facilities where employees can swim, play tennis, basketball, and racquetball. These amenities help employees relieve stress and maintain their health.
The company’s approach to absenteeism is supported by the Job Demand-Control (JDC) Model, proposed by Karasek, which suggests that job stress is a function of job demands and job control. By offering recreational activities and healthcare programs, SAS reduces job demands and increases job control, thereby lowering stress levels and absenteeism.
Furthermore, SAS provides comprehensive healthcare coverage for employees and their families, ensuring that health-related absences are minimized. The company also allows employees to take leave based on the severity of their illness, reflecting a compassionate and flexible approach to attendance. This policy aligns with the Conservation of Resources (COR) Theory, which posits that individuals strive to obtain, retain, and protect their resources. By supporting employees’ health and well-being, SAS helps them conserve their personal resources, reducing the likelihood of burnout and absenteeism.
Turnover
Finally, the turnover rate at SAS Institute is significantly lower than the industry average. While the average turnover rate in the industry is around 20%, SAS boasts a turnover rate of less than 4%. This low turnover rate is a testament to the company’s successful retention strategies and positive work environment.
SAS Institute’s low turnover rate can be explained by the Equity Theory, which suggests that employees compare their job inputs (effort, skills, experience) and outputs (salary, benefits, recognition) with those of others. When employees perceive fairness and equity in their employment conditions, they are more likely to remain with the organization. SAS’s commitment to fair treatment, job security, and comprehensive benefits fosters a sense of equity, reducing turnover intentions.
Additionally, the company’s emphasis on job satisfaction and organizational commitment is supported by the Job Embeddedness Theory, which posits that employees’ retention is influenced by their connections to their job, organization, and community. By creating a supportive and engaging work environment, SAS enhances employees’ job embeddedness, making them less likely to leave.
Personal Reflection and Comparison
I agree with the efforts made by SAS Institute. In my country, there is a turning point in changing the working style. Until now, companies have focused on hard work, leading to employees overworking every day and hesitating to leave at the end of the workday. However, our government has decided to change the working style, emphasizing that the quality of work is not determined by the length of working hours but by the quality of tasks completed. This shift is known as work-life balance.
Recently, my company has seen a decrease in the number of younger employees, while the number of retirees has increased. To address this issue, the government has implemented a plan to ensure an adequate workforce by targeting women and retired workers. If these individuals continue to work after marriage or retirement, the company can run more effectively. Achieving this goal requires changing the stereotypical working style and considering suitable working conditions based on personal preferences. SAS Institute serves as an excellent example for our companies to adopt effective working styles.
The theoretical frameworks discussed—Job Characteristics Theory, Expectancy Theory, Social Exchange Theory, Psychological Contracts, Job Demand-Control Model, Conservation of Resources Theory, Equity Theory, and Job Embeddedness Theory—highlight the importance of creating a supportive and motivating work environment. These theories provide valuable insights into the factors that influence work behaviors and underscore the effectiveness of SAS Institute’s approach.
In conclusion, SAS Institute’s success in fostering positive work behaviors can be attributed to its emphasis on job performance, organizational citizenship behaviors, absenteeism, and turnover. By providing opportunities for growth, maintaining job security, supporting employee well-being, and ensuring fairness, SAS creates a work environment that motivates and retains employees. As companies worldwide strive to improve their working styles, SAS Institute’s approach serves as a valuable model for achieving a balanced and effective workplace.