July 21, 2010

Employee Engagement – Stop Trying to Buy It

Every company has strategies to enhance employee engagement. Whether it’s a party, bonus incentive or telecommuting, employee engagement strategies are a part of the business’ growth plan. To what extent do business leaders and managers assess the effectiveness of these strategies? Some companies have formal evaluation or assessment processes to determine the impact of the strategies, and some may rely more on instinct. Whatever the method, insight is achieved.


I’ve noticed in my dealings with small and medium sized companies that the strategies they tend to use has a price tag attached to it. Benefits such as monetary bonuses and additional paid time off can increase motivation for the short term, but ultimately the benefit never covers the cost. What I've noticed is that when these types of initiatives are stopped, the level of engagement plunges.

What does this mean?

First of all, it shows that true employee engagement is not a commodity that can be bought. It has to be earned and nurtured. Like anything that has to be earned, it takes a consistent message and consistent reinforcement.

As discussed by Daniel Pink in his book Drive, The Surprising Truth about What Motivates Us, financial reward works as a motivator for simple and short term tasks – e.g. I’ll pay you $100 if you move those boxes from point A to point B. For jobs that are more complex or complicated, Mr. Pink says that it is important to focus on intrinsic motivational factors. However, before you can look at intrinsic motivational factors, you must ensure that the employees are being paid enough and that they are treated fairly. If this isn’t happening, employees can’t be motivated.

According to Mr. Pink, intrinsic motivation comes from:

  1. Autonomy – people are motivated by having a direct say on their own life; 
  2. Mastery – people are motivated when they make progress; and
  3. Purpose – people like to know they are making a contribution to a broader purpose.

A study performed on hospital janitors whose role was to sweep and wash floors all day found that those who were able to sculpt their job and were encouraged to contribute were happier, more effective in their work and more likely to stay in their job for longer periods. Small changes such as giving them autonomy to decide when and where to clean (unless needed in a specific area) and encouraging janitors to talk to patients and help nurses were found to make significant shifts in engagement levels.

And what is so interesting, is that these strategies didn’t cost the organization any additional money!

These three motivators are very much aligned with our Hierarchy of Employee Needs (http://www.cultureshockcoaching.com/Hierarchy.php), which may put engagement strategies in more simplistic terms for business leaders. Here is how our Hierarchy of Needs compares to Daniel Pink’s conclusions:

  
      Hierarchy of Needs                                                   Daniel Pink – Drive

      Safety & security/ financial needs                                  Paid enough and treated fairly

      Relationship                                                                 Autonomy

      Recognition                                                                  Mastery

      Self-actualization                                                          Purpose


 When people are paid enough and treated fairly, they feel safe in their jobs and their financial needs are met. A business leader will give an employee autonomy in his work when there is an awareness that the employee holds qualities such as responsibility, respect or determination. This comes from a strong relationship between an employee and their direct manager. To achieve mastery, employees require recognition for what they have achieved and what they can achieve. Progress in a job or career path will only occur when achievements are acknowledged. Self-actualization is gained through a sense of personal fulfillment. When employees understand the purpose of their work, and strive to achieve this purpose, fulfillment is gained.


How to incorporate intrinsic motivation into your engagement strategic plan?

1. Use the Culture Shock Coaching Hierarchy of Employee Needs to classify your existing strategies according to specific employee needs.

2. Look at the number of strategies in place that serve each need. Are you heavy in one area and light in another? How evenly are they disbursed? Do your strategies cover all areas of engagement needs?

  
3. Consider which areas need calibration – which areas need to be boosted, which areas need to be toned down?

  
4. Consider what strategies need to be set up to support this calibration.

  
5. Talk the talk – communicate this information on the staff. Talk about how important they are to the organization and their value to the team. Explain the strategies and your commitment to them.


6. Walk the walk – this is where the rubber hits the road. The consistency of your strategies is vital. If you decided to create a monthly news blast to acknowledge employee achievements and they stop going out after 4 months, your strategy will end up working against you. Commit to the strategies and make sure they happen. Get staff involved – it will add to their sense of purpose.

7. Repeat – make this process part of your annual strategic planning session. You will see the results on your bottom line.

2 comments:

  1. Great article Cindy. I am in full agreement both from a personal level as an "employee" and from an administrative perspective as the "employer".
    Lisa M.

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  2. Hi Lisa,
    Thanks for your comment. It's wonderful to be in a position where you are able to utilize your experiences as an employee to be better employer.

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