By Rod Waddel
Performance Path ® Software & Consulting Services
First reports on this most vital of subjects. First in a two part series.
Recently I was engaged in coaching several managers with a local insurance firm. One manager wanted to know how to get staff members to take on more responsibility. It was obvious the manager was motivated, so we quickly identified the work place factors that were reinforcing the staff’s lack of initiative.
The Problem
Our short list included:
- Trading time for money – Some staff members believe they are getting paid to show-up. Since their pay is based only on the time they put in they show little concern for results.
- Entitlement thinking – Pay, pay raises, bonuses etc are expected. Pay and benefits have become entitlements in the minds of many staff members.
- Paying everyone the same either per hour or through across the board raises de-motivates the best workers. This leads to competition for promotion since that is the only way to reward top performers. And may ultimately lead to the ‘Peter Principle’.
- Subjective performance measurement – Successful business operate by using hard measures fo material costs, labor, shrinkage, shipping, revenue and profit.
However, most organisations, successful and other wise, do not have an objective way to measure employee performance. As a result subjectivity leads to favouritism, or its opposite and an over emphasis on errors. It is only when things go wrong that management notices. This creates a negative and sometimes adversarial relationship between management and staff.
Now that we understood how the work place itself contributed to the employees resistance to change we turned our attention to ways we could over come them and realign the employee’s interest with those of the business.
This particular staff member had over ten years experience on the job. Although she was an “average” performer she was at the top of her salary range. Offering more money was out of the question. The manager wondered how to proceed. Many managers mistakenly believe that money is the best way to motivate people. It is not.
I explained, “First money is a very expensive and second the motivational effect doesn’t last very long. When you use money as your only reward many employees only think in terms of trading time for money; they think everything extra should has a price tag.”
The Solution
Although many managers provide rewards to their staff; they have a hard time answering the question as to what motivates staff other than money. I tell managers, “If you do not know what rewards your staff you could be feeding bananas to your tigers”. If you have ever received a gift you didn’t like, you know how this feels. Rewards and incentives only generate enthusiasm and willingness to give back when they are things you really want. In order for incentives to motivate staff they must be things that are specific to their wants and lifestyle needs.
There are two kinds of motivation, extrinsic and intrinsic. Extrinsic motivators are the result of consequence we receive for doing something or not doing something as the case may be. For example, getting something you like (rewarded) after completing a difficult task increases your willingness to repeat the efforts the next time the opportunity arises. As you might guess extrinsic motivators can be either financial or none financial. These include advanced training for employees that likes to learn new things, additional vacation time, flex time or recognition from a respected boss.
Some managers fall into the trap of threatening staff to motivate them. Yes, it works short term. Motivating staff with negative reinforcement happens when a manager threatens an employee with something bad if they don’t change their behavior. Employees may begrudgingly redirect their actions to avoid the threat. They may adopt a “work to rule” mentality and meet only the minimum work requirements but nothing more. This can lead to a death spiral of constant badgering, mediocre performance and poor morale.
The easy way to find the solution as to what motivates staff is to use the Incentive Cacheä Survey. It pinpoints the motivational ‘Hot Buttons’ of each staff member. It identifies six categories of incentives, both financial and non financial that motivate each staff member to do their best. You stop wasting time and money on bananas.
For example, several years ago a friend of mine received a “Perk” for a suggestion saving the company $8,000 a month. Her manager wanted to reward her initiative by giving her a perk coupon. A perk coupon could be exchanged for a company umbrella, beach towel or $10 in cash. She was livid when she arrived at my office. She swore never to give management any more of her good ideas. If her manager had know what motivated my friend she could have ensured her continuing support and initiative for nothing. By putting her photograph with an expression of appreciation in the internal newsletter my friend would have receive weeks of congratulations from peers and managers. She loved recognition.
Knowing what motivates staff is not enough to drive performance. To get the best results, for the time and money spent on incentives, you must make sure there is a timely response between when an action takes place and receiving an incentive. Unless the reward is huge, the longer you wait for a reward the less it reinforces continued performance. Yes, annual bonuses always well received; especially in the last few months before they are distributed, but they do not drive performance most of the year. When bonuses are cut, managers can still motivate their staff with more frequent combinations of personalized non-financial rewards linked with performance. Extrinsic rewards are important tools managers use to reinforce staff initiative and performance year round. Our next article will focus on intrinsic incentives. These are the tools leaders use to inspire greater commitment and loyalty among their staff.
Read more next month on the subject of motivation, including an insight into the three critical elements that influence behaviour.
For more information visit Performance Path online.