[ Volume Twenty Four ]

Article Overview: What role does money play in motivating your staff? Is it the only thing that motivates or do other factors such as accolades, holidays, gifts or an office with a view play a role? Perhaps internal motivators work better such as personal pride, verbal recognition or their love of the work itself. The following article discusses the link between money and motivation.

Take two employees who work for the same company. Both have the same earning potential with the same ability and opportunity for advancement, yet one consistently outperforms the other. So, why is it one person is driven to produce superior results whilst another is not?

The answer is motivation - and the challenge for employers is to establish the motivational drivers for each employee and then create an environment where each employee is motivated to do their best work.

So, what does motivate?

A recent Gallup Poll published in Human Capital Magazine found that 21 percent of Australian employees interviewed were "actively disengaged" at work. These workers complained that they don't have the tools they need to do their jobs, they don't know what is expected of them and their bosses don't listen to them. Results from the Gallup Poll would suggest that what really motivates workers is feeling responsible for and connected to their work - ensuring that workers see value in performing the work itself. It is important to note money and financial reward are not mentioned as reasons for being disengaged and yet many managers use financial rewards as a key method to motivate employees.

Managers can help employees 'connect' to their work by giving them more authority over the job, as well as offering direct and individual feedback. It is also clear that people thrive in a work place in which all employees live by the same rules. If you create an environment that is viewed as fair and consistent, you give people little to push against. You create an atmosphere in which people are focused on contribution and productive activities rather than gossip, unrest, and unhappiness.

So, does money motivate? By itself money won't produce all the behaviours you wish to see in your employees but it does set the stage for employee attitudes and behaviours. If the money equation doesn't feel right to your employees, nothing else you do will move them. But if they feel that the money equation is favourable, they are much more likely to rise to the challenges of stretch goals and high performance expectations. So the key to getting the relationship between money and motivation right is:

• Pay people well.
  
• Pay people fairly.
  
• Then do everything possible to take money off people's minds.

Seven Practical Employee Motivation Tips:

Once you have the 'money equation' right, the following practices can assist in creating a work culture that promotes employee motivation:

1. Treat employees as adults!
Keep rules, guidelines and policies to a minimum and encourage employees to make decisions for themselves. The best work places promote individual and group success and raise the self-esteem of employees. Create a work environment that is open, trusting, and fun.

2. Provide regular training.
Empower new and existing employees by providing good training in problem solving and process improvement. Empowered employees are more likely to perform well.

3. Involve employees in policy and procedure setting.
Ask employees for their input before implementing a new policy. Hold focus groups to gauge employee reaction to potential new guidelines. Discuss new policies in employee or team meetings. Allow time for questions and discussion. Then, enforce policies as consistently as possible.

4. Encourage open communication between you and the people who report to you.
Communication is key to a healthy, thriving organisation. Regardless of the size or stature of your workforce, there must be a clear and constant stream of communication between all employees and their managers. Share information about your business, your customers, profitability, mission, vision and company goals. The more people know, the more they can act independently.

5. Encourage creativity.
Provide a budget for employees to spend on new ways of working. Write your department's biggest challenge on a poster in a common area. Invite employees to add their solutions to the poster and review it weekly. Reward ideas and ensure that creativity is recognised and openly appreciated.

6. Address unacceptable behaviour immediately.
Almost nothing lowers the morale of your employees more quickly than seeing inappropriate work behaviour go uncorrected. Deal with low or marginal performers individually and in a timely manner, so they either improve or leave.

7. Ask employees what motivates them.
A company or department-wide survey to determine which incentives and motivation techniques employees' value is an excellent first step in developing an effective employee recognition and productivity program.

Develop a 'toolkit' of motivational techniques

Superior organisational performance can only be achieved through superior individual performances. Managers are expected to understand and apply motivational techniques to achieve higher and higher levels of performance from the same number (or sometimes fewer) employees. And because different people respond to different motivators, it is important for managers to have a broad repertoire of motivational tools and strategies available to them.

Before managers open their purse to motivate staff with money consider this. If your employees are already paid well and receive at least what would be considered a fair amount then additional financial incentives may not be the best choice of motivator. Why not focus on providing a work culture that enhances employee motivation instead. An environment that provides each employee with the knowledge required to perform their job well, that communicates what is expected of each employee and that provides mechanisms that show that management are interested in what the employee has to say.

And always remember - various devices (money included) can be used to get people to do something, but that is a far cry from making people want to do something. Perhaps the key to what really motivates people lies within the job itself. As Frederick Herzberg put it: "If you want people motivated to do a good job, give them a good job to do."

References:

1. Compensation & Benefits Review, March/April 1998 - Challenging Behaviorist Dogma: Myths About Money and Motivation, By Alfie Kohn.
2. Does Money Motivate? Alexander Hiam & Associates, 1999.
3. Frederick Herzberg, "Workers' Needs: The Same Around the World," Industry Week, 21 September 1987, p. 30.
4. Set Them Free: Two Musts for Motivation! Susan M. Heathfield.
5. Getting Everyone On Board by Jason Gracia.
6. Human Capital Magazine - issue 7.4, page 15, May 2009.

About Regent Recruitment Regent Recruitment is a consultancy that assists leading Australian employers to attract and retain talented staff on a contract, temporary or permanent basis. Whether we are filling one permanent role or recruiting contract staff for a 400-seat call centre, we deliver the same high level of service. Operating nationally, the company is unique in that it combines the capabilities of a large-scale multinational recruitment firm with exceptional service levels typically only associated with small boutique agencies. How can we assist you? We would welcome the opportunity to have a confidential meeting to discuss your staffing needs in more detail. If you are interested, in the first instance please call Howard Mereine, Group General Manager, on (03) 9909 7150 or e-mail Howard at hmereine@regentrecruitment.com.au. We look forward to speaking with you.

This article was licenced by Regent Recruitment for the Regent Recruitment client newsletter.
Written by Paul Quinn, Quinntessential Marketing Consulting Pty Ltd.



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The views and opinions expressed in this document are those of the authors and do not necessarily reflect the view of Regent Personnel Pty Ltd.