How to boost employee motivation without breaking the bank

1
How to boost employee motivation without breaking
the bank
Not Peer Reviewed
4th October 2006

• Clive Wright
• European Partner

2
Does money motivate?
3
Yes, but .

• How much money?
• For what?
• How easy or difficult will it be?
• When do I get paid?
• Does my work lead to the results?
• What else could affect the results?
• What do I give up to get the rewards?
• Do I want the reward?

4
Theories of Motivation and Reward
Economic Supply and Demand Efficiency Wage
Theory Effort Bargain Principal Agent
Theory Human Capital Employee Relations Labour
Process best deal Unitarist/Pluralist Bargaining
Level/Decentralisation Holistic Pay/Total
Reward Strategic Pay New Pay Punished by
Rewards Anti-behaviourist Total System/Total
Reward
Psychological Achievement/Social Motives Myers
Briggs - Preferences Emotional Intelligence Hierar
chy of Needs Existence, Relatedness,
Growth Theory X, Theory Y Goal Theory Reinforcemen
t Theory Attribution Theory Cognitive Evaluation
Theory Expectancy Theory Self Efficacy Motivation/
Hygiene Theory Game Theory Distributive/Procedural
Justice Psychological Contract
Source Helen Murlis, CIPD Reward Management 2005
5
Motivation according to managers

• Pay more,
• Give them a bonus,
• Introduce an incentive scheme,
• Develop a gainsharing plan,
• Introduce commissions
• What about a profit sharing scheme

All of which are difficult and very expensive
6
Taking a wider view of rewards

• Base / hourly pay
• Incentives / bonuses
• Share schemes
• Pensions
• Health
• Holidays
• Company cars
• Club memberships

7
Recognition

• Its about finding people doing good things and
  letting them know they are appreciated

8
The best motivators you can find

• Thank you
• Well done
• That was an excellent job
• That was really useful
• I/we appreciate the work you did

9
Why dont companies do it more?

• Managers dont feel comfortable about doing it
• There are issues of fairness
• The Inland Revenue have rules you need to follow
• Whose budget pays for it
• Who controls and authorises it
• Nobody does it for me, why should I do it for them

10
Why dont companies do it more?
Its not about companies its about people

• Managers dont feel comfortable about doing it
• There are issues of fairness
• The Inland Revenue have rules you need to follow
• Whose budget pays for it
• Who controls and authorises it
• Nobody does it for me, why should I do it for them

No excuse
11
Thats the way to do it

• Make it part of the way that the organisation
  thinks about reward build it into the culture
• Make the award as soon as possible after the
  event.
• Make the award appropriate to the event and the
  person.
• Dont make it overly bureaucratic. Someone
  (usually HR) needs to monitor it, but line
  management must own it.
• Have a budget for it if you must (0.25 of
  payroll is typical), but many just use the normal
  operating budget.
• Dont make a big public announcement about the
  award unless you know it wont offend the
  recipient.

12
..more ways to do it

• Dont have just one scheme develop lots and see
  which ones work well.
• Its not just about managers recognising
  employees. It should be about anyone or any
  group of employees recognising another person or
  group at any level and in any department.
• Be prepared to change, revitalise or replace the
  scheme/s.
• Publish success you dont necessarily have to
  mention the award, but you should let everyone
  know that the success has been noticed.
• Dont listen to those who say it wont work
  around here or their people dont like it. Try
  it!