Oriel Recruitment

Motivation

by Mark O’Donnell and Ciara Bolger, Deloitte

Don’t you wish motivating your employees was as simple as gathering them collectively in the meeting room for an Al Pacino ‘Any Given Sunday’ type team talk, slapping a few high fives at department meetings or delivering a Tom Cruise ‘show me the money’ type speech? Unfortunately these Hollywood inspirational moments don’t translate themselves realistically into the small screens in our offices. The task of motivating employees is no easy feat and in an era of increasing workforce diversity it is becoming an even bigger challenge. Gaining the allegiance of people who don’t share the same values, customs, aspirations and preferences is a complex task and so, in our intergenerational and multicultural workforce, a one size fits all approach to motivation is no longer going to suffice.

Why motivate?

We all know the benefits of a motivated workforce - higher productivity, higher levels of customer satisfaction, more innovation and creativity to name a few. However, the importance of employee motivation is now more crucial than ever, the reasons for which are twofold: Firstly, with the looming forecasts of an economic downturn employee morale is vulnerable and therefore managers need to ensure that their workers remain motivated and committed to the success of the organisation. A second reason relates to the ‘war for talent’ that is currently being waged between
organisations at a national and international level. As developed countries increasingly become knowledge- based, service-driven economies, the competition for talented people grows and keeping employee turnover at a minimum is a critical issue for employers.

Motivation is an age old workplace issue that has been written about and discussed at length but is still an area that employers find hard to get right. The oldest technique used to motivate workers is the ‘Carrot and Stick’ method. This method evolved from the practice of encouraging donkeys to either do what was wanted by enticing them with food or stopping any unwanted behaviour by striking them with a stick. In some organisations the underlying principle behind this approach is still being put into practice; this is the misconception that money makes people work harder. As Hertzberg said in his renowned article on motivation ‘wage increases motivate people to seek the next wage increase’. Research studies have repeatedly found that while competitive benefits and pay are expected, they are not the primary reason employees join or stay with an organisation nor does pay feature as a primary source of motivation for the majority of workers. A pay cheque is fine for generating a base level of performance but has little impact beyond that.

One size doesn’t fit all

Employers need to understand the factors that really motivate their individual employees, which in turn will enable them to develop an effective Employee Value Proposition (EVP) that resonates with the entire workforce. An EVP is “the sum of everything the people in your company experience and receive while they are a part of the organisation; from the intrinsic satisfaction of the work, to the environment, leadership, colleagues, compensation and much more. It’s about how well the company fulfils people’s needs, expectations and dreams” (Harvard Business School Press, 2001). In efforts to motivate their employees, many managers make the mistake of believing and acting as though everyone is motivated in the same way, but in reality what motivates one employee may

be a source of demotivation for the colleague sitting next to them. For example there may indeed be some employees that place a high value on money and may be motivated by such extrinsic rewards. On the other hand there are those who don’t have pressing financial needs and so instead value time off, public recognition or intellectual challenge. An EVP should be one that promotes organisational culture while at the same time appealing to each employee at a very personal level. It is also important to ensure that the managers understand and apply the concept of personalised motivation.

What is Personalised Motivation?

The concept of personalisation may be new in terms of Human Resource Management; however it has become a key marketing strategy for many of the world’s most influential organisations such as Amazon, Google, BMW and many others. The ultimate aim of this new trend is to create a valued one-to-one relationship with the customer giving them a strong sense of loyalty to the product brand. So what does this have to do with employee motivation? Translating this concept into the world of employees and their organisations, it draws on the concept of employees being considered as internal customers of the organisation. If companies are personalising their products, such as credit cards, cars, mobile phones, webpages and so on, in order to increase external customer loyalty, then why not apply the same principle to their motivation techniques to enhance internal customer loyalty. A recent study carried out by Hbc Rewards, a US based corporate rewards company found that 65% of HR professionals surveyed believed that offering employees more personalised relevant incentives would increase the employees’ motivation to perform well in the future. An example of where this is already happening is with a client of ours who recently introduced the policy of offering a ‘suite’ of rewards including vouchers for healthcare, gym membership and crèche facilities to name a few. Employees can choose which they receive based on their own preferences and as a result there has been a noted increase in engagement levels. Personalised motivation would enable managers to tailor their approach to motivating their staff in accordance with individual standards, tastes and preferences and effectively match the right reward to the right employee. Companies with an attractive EVP gain a strong reputation, or employer brand, in the labour market. An employer brand represents the company’s reputation for offering ‘quality employment’ and includes factors such as compensation and benefits, work-life balance, work environment and company culture. As organisations compete for talent, employer branding is now seen as a strategic driver for attracting and retaining employees who can add value to the company.

Matching the right reward to the right employee

So how do managers start ‘personalising’ motivation? The first step is to genuinely understand your employees and what it is that drives each of them to perform. Today’s Irish workforce is more complex and diverse than ever before. With four generations and over one hundred nationalities, there is a wide variety of values, tastes and preferences. Research has shown that people from different cultures attribute different meanings to achievement and have different reasons for being motivated. For example, respect can be the number one driver in some cultures while others may put more emphasis on harmonious relationships. Extensive research has been carried out into understanding the differences between the goals and motivations of workers across the world and an awareness and appreciation of these variations can help managers understand how to effectively match the right reward to the right employee. For example workers from more collectivist and group orientated countries such as Pakistan, Japan and those in East African countries are motivated by social needs and collective team rewards. This is in sharp contrast to the more individualistic countries like America where individual incentives and personal recognition are desired and there is a high importance placed on the nature of the job. Quality of life and work life balance are integral to the Scandinavian value system while Latin countries have been found to value fringe benefits such as medical plans, retirement benefit plans and employee discounts.

Tuning in to generational differences toward motivation

In addition to the need for managers to be sensitive to the cultural differences among their employees they must also appreciate the differences that the four generations of employees bring to today’s workforce. These are The Veterans (born between 1925 and 1942), The Baby Boomers (1943 - 1963), Generation X (1964 - 1981) and Generation Y (1982 and after). The phrase ‘people resemble their times more than they resemble their parents’ rings true on examination of what motivates these different generations. While the majority of the Veterans are retired, they still make up 2% of the Irish Workforce. Many of our traditional organisational practices and benefit plans were designed to suit the needs of this group. As one of my colleagues put it, ‘a 35-year time horizon for a defined benefit pension plan didn’t seem overwhelming to a veteran who expected to work an entire career with one employer’. A key motivator for this group is job security and respect for the experience and knowledge they have acquired throughout their life, and they want to be rewarded for their effort and service.

The Baby Boomers, who make up 29% of Irish Workforce, tend to be optimistic, driven to succeed, and value affiliation. They are also interested in personal growth, gratification and wellbeing. They inherited the world of work the way the Veterans created it and
have accepted the traditional approach to benefit and reward plans. To motivate the Boomers, they need to feel that their contribution is important and unique and they like to have a sense of belonging to an organisation. It is expected that they will work longer than their predecessors but reduce their work gradually as they move towards retirement by job sharing, part time work or other flexible arrangements. Consequently they are likely to value the availability of flexible working options from their employers.

At 53%, Generation X constitutes the largest portion of the Irish Workforce. This group experienced economic recession as they were growing up and as a result they are conscious of the need to manage their careers and constantly develop their skill set.

Therefore, they are encouraged by constant feedback on their performance and a clear understanding of their role in their team and organisation. They also appreciate tangible rewards such as gift vouchers or a dinner out in recognition of a job well done. This generation also experienced a shift towards non traditional family settings and witnessed large numbers of women entering the workforce. As a result, several of them grew up as ‘latch key’ kids and are now conscious that this does not happen with their own children. For this reason, they value flexibility in their work hours and appreciate an employer that can offer a balance between a successful career and a meaningful life.

Generation Y, or The Millennials as they are often called, currently make up 16% of the Irish Workforce. Having been raised by the Boomers this group are extremely optimistic and confident. They grew up basking in ‘the decade of the child’ which has led them to be lifestyle centred and to place a high value on work-life balance. We recently conducted a survey* to get a deeper insight into what it takes to really motivate and engage Generation Y, and it was found that a focus on training and career development is paramount to this group. Also scoring highly was challenging work, opportunities to network, responsibility and autonomy, and regular communication with superiors. They crave a deeper satisfaction from their jobs and won’t respond to old-style management techniques. This group are tech-savvy, and having grown up in an information society, they are used to being connected anywhere and at anytime. Therefore if their work environment is not also tech-savvy it can be a significant source of demotivation for this group as they have little tolerance for delays particularly where technology is concerned.

The personal touch

Clearly culture and age contribute significantly to the different ways people are motivated and these are just two of many factors. Because of such individual variations, the only way a manager can really find out how to motivate the people on his/her team is to take a personalised approach and actually ask them. Some practical ways of doing this include:

• Informal chats - write down the three things you think motivates each of your team members and get them to do the same - compare the lists and base a discussion around this.
• Surveys - design a survey with open-ended questions to elicit exactly what it is that motivates each of your employees.
• Performance appraisals and reviews - use this one-to-one time to discuss and capture what individuals enjoy most.
• Engage the service of companies that specialise in creating tailored organisational incentive and reward programmes.
  
  

Creating sustainable motivation

The benefits of personalising motivation can be considerable. It is not just an exercise to keep the HR department busy but an initiative that can have real organisational impact. Making rewards and incentives bespoke to each individual can have a positive influence on employee morale, which in turn will enhance performance. By appreciating the uniqueness of individual employees and linking motivation techniques to fit with their values and preferences, sustainable motivation and not just short-lived momentum can be achieved.

Article written by Mark 0’Donnell, Director and Ciara Bolger, Consultant, Deloitte Human Capital Advisory Division.

*The full report can be accessed by visiting www.deloitte.ie

Published in: HR & Recruitment Ireland, March 2008