According to the SHRM Foundation, employee commitment involves the organization energizing employees by engaging with them and ensuring that the employees believe in the organization's goals and know that they are a key part of accomplishing these goals. Annual anonymous surveys are a good way to gauge employee commitment levels.
The CEO of General Electric claimed that employee commitment is the number one measure of a company's health, coming before even customer satisfaction and company cash flow. This is because employee commitment means that the employees are happy with the company they work for. Happy employees are likelier to work harder for organizations that they believe in, which leads to higher productivity and lower turnover rates for the company.
Part of this employee commitment is the employee's willingness to continue with a specific course of action and the reluctance to change current life plans, both of which translate to loyalty to the company. This loyalty means that employees are willing to give additional time and energy to the requirements of their employers and are likelier to have positive feelings toward the employers. In order to maintain this happiness and loyalty, companies must make tangible displays of reciprocity to employees. This includes job security and fair compensation, and it helps show that the company values employees' contributions.