Why a Paycheck Isn't Enough....
motivation/mo-te-va-shen/ n 1 a: the act or process or
motivating b. an external influence (as in an expected reward or bonus) i.e. today's
employees are recognized for outstanding work 2. a power driving employees to
act; a positive incentive or desire operating on the will and emotion causing action;
see: incentive, recognition
What is Motivation?
Why do people do what they do is a question that has baffled mankind since the dawn of
time. In general, it is thought that people's actions are driven by their unmet needs. That
is, if we are hungry, we eat: thirsty, we drink; tired, we sleep: and so forth. Once our
physical needs are met, our attention turns to meeting higher level needs, such as a sense
of belonging and achievement.
Many of these needs are achieved in the workplace in the course of our careers. Although
we all have the same basic needs, we are each motivated differently over time and at any
given time. One person might be motivated to spend more time with his family, another
might want a raise, while a third might want more responsibility. For this reason, when it
comes to motivation, it is safest to say that whatever motivates people, motivates people.
Motivation is also thought to come from within, that is, to be intrinsic in
nature. Its believed that you can't motivate others; you can only motivate yourself. True,
you at times can force others to do what you want, but such coercion is apt to be shortlived
and last only as long as the direct force or threat exists. As the joke goes, if you tell
someone what you'll give him for doing something, that called an incentive; if you tell
someone to do something or else hell get fired, that's called motivation.
The use of coercion, fear and the threat of punishment doesn't work very
well in most organizations today. This is in part due to a change in societal norms under
which it is considered politically incorrect to force anyone to do anything. But, more
importantly, such a style of management does not get the best results. Today's employees
are increasingly expected to use their own best judgment -- not just to rely upon what they
are specifically ordered to do.
The most effective role of managing has thus shifted from an authoritative
command and control, my way or the highway style -- which has served as the
predominant style of management since the Industrial Revolution -- to a style in which the
most successful managers today are coaches, colleagues, counselors and even cheerleaders
for employees.
You can create an environment in which
individuals can be motivated. In fact, doing so is perhaps
the most important role of managing today. The key element in
shaping a motivating work environment is the management of consequences, the most
important of which are positive consequences.
Every employee wants to be magnificent. Every employee starts a new job
excited about doing their best. Yet somehow, for many employees the excitement of the
job quickly wears off. I believe this is due more than anything else to how they are treated
by their managers on a daily basis. An unmotivated employee in most instances reflects
more on that persons manager than on his or her own potential in the workplace.
Today's managers need to establish a supportive environment in which
people can be their best. Managers need to create a new partnership with employees, to
help them reach their full potential in achieving their own personal goals as well as the
goals of the organization. The use of recognition and rewards is the primary way to create
a supportive work environment in which employees can be -- and are -- highly motivated.
Although the notion of rewarding desired behavior is common sense, it is far
from common practice in business today. Yet it needs to become common practice if your
organization is to thrive, let alone survive.
Everyone likes to be recognized and appreciated. How many managers,
however, consider appreciating others to be a major function of their job today? It should
be. At a time in which employees are being asked to do more than ever before, to make
suggestions for continuous improvement, to handle complex problems quickly, and to act
independently in the best interests of the company, the resources and support for helping
them is at an all-time low. Budgets are tight; salaries are frozen. Layoffs are rampant;
promotional opportunities are on the decline.
In today's business environment, what used to be common courtesies have
been overcome by speed and technology. Managers tend to be too busy and too removed
from their employees to notice when they have done exceptional work -- and to thank them
for it. Technology has replaced personal interaction with constant interfacing with a
computer terminal. John Naisbitt predicted this would happen over a decade ago in his
book Megatrends. He said the more our work environments become highly technical, the
greater the employee need would become to be more personal and human. He called the
phenomenon high-tech/high-touch. And all this is happening at a time in which employees
are looking to have greater meaning in their lives -- and especially in their jobs.
The irony of the situation is that what motivated
people the most takes relatively little effort to do -- just a
little time and thoughtfulness for starters.
Benefits of Recognition
Although recognition and appreciation are good things to do, and people definitely feel better
when they are appreciated, recognition also has a direct bottom-line impact in most
organizations. It serves to decrease costs as well as to increase revenues.
| Decreases | Increases |
| Stress | Morale |
| Absenteeism | Productivity |
| Turnover | Competitiveness |
| Related Costs | Revenue & Profit |
In addition, good treatment of employees results in similar treatment of
customers. In fact, you'll never get employees to treat customers better than they are
being treated themselves.
"There are two things people want
more than sex and money... recognition and
praise", says Mary Kay Ash, founder of Mary
Kay Cosmetics.
What do workers want from their jobs? A series of studies done by Lawrence Lindahl in
the late 1940s, and repeated with similar findings by Ken Kovach in 1980 and Bob Nelson
in 1991, found that what managers perceived as being most important to employees was in
sharp contrast to what the employees themselves reported as being most desirable.
Why Employees Take Jobs...
In the recent National Study of the Changing Workforce by the Families and Work
Institute, open communication was ranked as the most important reason given by
employees for taking their current jobs. Everyone wants to know what's going on --
especially as it affects them -- and just telling them can be very motivating. How difficult
is it to tell people information that could be useful in helping them to do a better job? Yet,
again, how often do managers take the time to do it? Following are the top reasons
reported by employees as being very important in deciding to take the job with their
current employer:
| open communication | 65% |
| effect on personal/family life | 60% |
| nature of work | 59% |
| management quality | 59% |
| supervisor | 58% |
| gain new skills | 55% |
| control over work content | 55% |
| job security | 54% |
| co-worker quality | 53% |
| stimulating work | 50% |
| position/salary | 35% |
Note that most of the items listed in the above study relate to the intangible
part of work that can be most influenced by managers-employees needs, aspirations and
goals -- not just the tasks that need to be done. Even an incentive such as job security has
new meaning today; not the traditional idea of guaranteed employment, but rather
knowing where the employee fits into the overall organization and in the opportunities to
learn new skills that result in future employability.
And Why They Go...
In a recent national survey by the staffing firm Robert Half International, limited
recognition and praise was cited as the most common reason for why employees left a
company. It was ranked higher than compensation, limited authority, personality conflicts,
and all other responses.
Is Money The Top Motivator?
Most people don't work just for money. In fact, money is seldom the top
motivator of employees. I'm not saying money isn't important; clearly it is. We all need
money to pay our bills and have the standard of living to which we are accustomed. I'm
also not saying money has no motivational value; clearly it does.
And the strength of that motivation will vary over one's life. If you are
buying a new home, have some unexpected medical bills or have children in college, you're
going to be more keenly aware of your monetary needs.
But for most of us, for most of the time, once we are able to make our
monthly bill payments, our attention turns to other factors that have much greater
significance in our lives: Feeling we are making a contribution, for example. Having a
manager that tells us when we do a good job. Having the respect of our peers and
colleagues. Being involved and informed about what is going on in the company. Having
meaningful, interesting work.
"Economic incentives are becoming rights rather than rewards. Merit raises
are always introduced as rewards for exceptional performance. In no time at all, they become
a right. To deny a merit raise or to grant only a small one becomes punishment. The
increasing demand for material rewards is rapidly destroying their usefulness as incentives
and managerial tools"----- Peter Drucker
The point is, the money employees are paid for the job they are
hired to do is compensation, which should be a function of your company's
compensation philosophy and its market and geographic considerations. Recognition is
what you do above and beyond compensation to get the best effort from
employees. As management expert Rosaveth Moss Kanter says,
"Compensation is a right. Recognition is a gift."
You might ask, Why isn't what I pay people good enough to get
them to do their jobs? Why do I have to do more? People will do their jobs for
what they are paid, but it will do little to get them to do their best job or to go above and
beyond what you expect of them. That extra effort is more a function of how they are
treated -- the softer side of management --not what they are paid. In the work of
management theorist Frederick Herzberg, a fair salary is considered a hygiene factor --
something everyone needs in order to do the job they are hired to do. Such factors include
adequate work space, light and heat, a telephone -- if you do not have any of these items,
you will be demotivated and unable to do the job you are hired to do. If you have all of
these items, you will be able to do your job, but having them will do nothing to help you to
do the best job possible. Getting people to do their best job is more a function of what
Hertzberg calls motivators including praise and recognition, challenging work, and growth
and development opportunities.
Another question I am asked is, If money isn't a top motivator,
then why is it all I seem to hear about from my employees? I've had a chance to
examine this question firsthand in several companies and have found several explanations:
- In some working environments where people are doing jobs they don't
enjoy for managers that never show their appreciation, employees conclude, If this is what
its like to work here, at least they better pay me well. That is, money becomes a
psychological exchange for enduring a miserable job.
- In other companies I've found that managers only use money to thank
people -- for example, bonuses for completing projects, on-the-spot cash for desired
behavior or an extra percentage in the employees annual salary increase. Without
intending it, these managers implicitly send the message to employees that unless you get
cash, your contribution to the company is not important. Essentially, they train employees
to expect cash as the only true form of thanks. Its true, that some people directly
correlate the amount of money they earn with their perceived worth to the organization.
You need to be careful, however, that you do not just respond to those individuals who
constantly ask for more money, since you want to reinforce results, not requests. Also
realize that you will never get the best effort from employees just by paying them more.
For employees who just want more money will never be satisfied with what they are paid.
Their expectations will always rise with each salary increase.
3% of base salary separates average from outstanding
employees
81% of workers say they would not receive any reward for
productivity increases
60% of managers feel their salary would not increase if their
performance improved
Another manager might ask: Since money is a basic need, don't you have to
pay people well first before the other factors you're discussing are motivating?
That question came up at a conference keynote I was giving, and I was delighted to have
another member of the audience interject: Not necessarily! I found that by using positive
reinforcement I was able to increase the level of performance of my employees, which led
to increases sales revenues which ultimately made it possible to pay people better. In other
words, non-monetary incentives allowed the boat to rise financially for everyone.
Another way to look at the relation between money and motivation is that
most of us cannot influence what we earn on a daily basis, but a lot of things can influence
how excited and motivated we are about our jobs on a daily basis. How employees are
treated by their managers is paramount to having them come to work energized and
committed, bringing their best thinking and initiative to the job. The daily interactions
management has with employees either serve to build and develop the trust and respect of
employees or to hinder and erode those factors.
Every company today needs to obtain
extraordinary results from ordinary people in
order to thrive, let alone survive.
It used to be that the focus of work was on renting employee behavior. In
fact, in some work environments, people were even referred to as hired hands. Today, its
not good enough to simply rent the behavior you want from employees -- you've got to find
a way to elicit their best effort. You have to make employees feel valued so that they want
to do their best work on a daily basis, to consistently act in the best interests of the
organization. You can get such results from your employees by focusing more on how you
treat them. Following are the top five workplace incentives reported by employees during
a recent study conducted by Dr. Gerald Graham, management professor at Wichita State
University.
- Personal Thanks From Manager
- Written Thanks From Manager
- Promotion For Performance
- Public Praise
- Morale Building Meetings
How Often Are Workplace Incentives Used?
Dr. Gerald Graham's study of 1500 employees reported that they seldom if ever received
personal incentives.
58% seldom if ever received personal thanks from their manager.
76% seldom if ever received written thanks from their manager.
78% seldom if ever received promotions based on performance.
81% seldom if ever received public praise in the workplace.
92% seldom if ever participated in morale-building meetings.
Dr. Graham found two common characteristics among the top motivating
incentives in his study. The most motivating incentives to employees today are ones which
are:,p>
Manager Initiated
Based on Performance
Motivation is very personal and is influenced most
by those we work with closely--starting with our immediate
manager.
We feel most valued when we are recognized for doing the job we signed up
to do or for going above and beyond what is expected of us to act in the organizations best
interests. Dr. Grahams conclusion was:
It appears that the techniques that have
the greatest motivational impact are practiced
the least even though they are easier and less
expensive to use.
In a recent survey of American workers, 63% of the respondents ranked a pat on the back
as a meaningful incentive.
The Golden Banana Award.
A Hewlett-Packard Company
engineer burst into his managers office in Palo Alto, CA to announce he'd just found the
solution to a problem the group had been struggling with for many weeks. His manager
quickly groped around his desk for some item to acknowledge the accomplishment and
ended up handing the employee a banana from his lunch with the words, well done.
Congratulations! The employee was initially puzzled, but over time the Golden Banana
Award became one of the most prestigious honors bestowed on an inventive employee.
Now, you wouldn't think that a banana could be a significant incentive. But
given the right context, anything could be a symbolic reward. Daniel Boyle, vice president
and treasurer of Diamond Fiber Products, Inc., in Thorndike, MA, describes the impact
when she was presented a nylon and cotton jacket as a special employee recognition
reward called The 100 Club in his company:
"You might think this a trivial thing, but is means a lot to the people
who earn a jacket. A teller at a local bank told me that a woman came in and
proudly modeled her baby blue 100 Club jacket for bank customers and
employees. She said My employer gave me this for doing a good job. Its the first
time in the 18 years I've been there they've recognized the things I do every day.
During those years she had earned $230,000 in wages, which paid
for cars, a home mortgage, food, other essentials, vacations, and college
educations. In her mind, she had provided a service for her earnings. They
money wasn't recognition for her work, but the 100 Club jacket was."
The Star Perk Program has been endorsed as an ideal employee recognition tool by Bob Nelson!
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