KPMG believes that it is important for employees to feel valued and motivated to work. Just a few years ago, however, this was not the case. Workers at the company were not engaged in their jobs, turnover was high, and overall performance was suffering as a result. KPMG recognized that a fundamental shift was needed if it were to maintain its track record of success.

KPMG identified four things that were important to motivating employees and improving job performance.

First, employees wanted to work for a winning organization of which they could be proud. Second, workers wanted to have the resources and information necessary to allow them to achieve their objectives in a timely fashion.

Third, they wanted to be treated well, and fourth, they wanted to enjoy their work. This knowledge, together with the commitment of the CEO and senior management, allowed the company to make changes in several areas.

Today, KPMG workers enjoy better compensation packages, improved work/family arrangements, and more career development opportunities. The changes appear to have been successful. Employee turnover at KPMG has dropped, and individuals at all levels are more committed to their jobs and to the company as a whole.

Discussion Questions
1. What would equity theory (as presented in Chapter 7) imply about employee satisfaction and performance at KPMG?

2. What does expectancy theory (as presented in Chapter 7 suggest about the habits of workers at KPMG?

3. How does KPMG go about meeting the varied needs of its employees?