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How Companies Get Motivation Wrong
 

How Companies Get Motivation Wrong

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7 common mistakes companies make when trying to motivate their employees - and how to fix them

7 common mistakes companies make when trying to motivate their employees - and how to fix them

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    How Companies Get Motivation Wrong How Companies Get Motivation Wrong Presentation Transcript

    • How Companies Get Motivation
      WRONG!
      Kurt Nelson
    • Many companies get motivation right…
    • Many companies get motivation right…
      Yeah for them!
    • But many companies get motivation wrong
    • And some get it spectacularly wrong!
    • And some get it spectacularly wrong!
      Ouch!
    • And that’s not good
    • And that’s not good
      Decreased Motivation Leads to:
      Lower productivity
      Higher turnover
      Decreased sales
      Lack of creativity
    • In our work with companies across the country, we have had the opportunity to examine why this happens…
    • In our work with companies across the country, we have had the opportunity to examine why this happens…
      And understanding is the first step in getting it RIGHT
    • Here is a short list that describes just a few of the more common mistakes that we’ve seen
      Focus only on money
      No manager discretion
      No manager tools
      Too complex
      Wrong measure
      Communication
      Fixated on costs
    • 1. Focus too much on the drive to Acquire (i.e., the pay plan)
    • 1. Focus too much on the drive to Acquire (i.e., the pay plan)
      Companies that do motivation right have a comprehensive plan that emphasizes more than just pay. They focus on:
      • Teamwork
      • Work Environment
      • Work/Life Balance
      • Growth Opportunities
      • New Challenges
      • Commitment to Ideals
      • Corporate Identity
      • Broader Purpose for Employee
    • 2. Don’t give front line managers enough discretion
    • 2. Don’t give front line managers enough discretion
      Front line managers typically have the greatest impact on individual employees perception about the company.
      Limiting how they can motivate or not trusting them to do it right decreases their motivational effectiveness.
    • 3. Don’t give front line managers enough tools
    • 3. Don’t give front line managers enough tools
      Companies that do motivation right provide their managers with:
      • Motivational Training (e.g., “How to Motivate 101”)
      • Discretionary Reward Programs
      • Easy to Use Reports
      • Motivational Support from home office
      • “On the Spot” Awards
    • 4. Making incentives too complex
    • 4. Making incentives too complex
      While companies might want to make their IC plans more complex to try to ensure fairness or meet certain budget expectations…
      The morecomplex and harder they are to understand, the less effective incentive plans are at driving behavior change.
    • 5. Rewarding the wrong things
    • 5. Rewarding the wrong things
      Too often, companies good intentions can lead to rewarding the wrong behavior. The most common mistakes:
      Rewarding things that are not in alignment with strategy
      Reward things because they are easy to measure
      Rewards have become entitlements and perceived as “unchangeable”
    • 6. Not communicating enough
    • 6. Not communicating enough
      Highly motivating companies over communicate to their employees – regarding their:
      • Pay Plans
      • Total Rewards Strategy
      • Reward Culture
      • Company Mission
      All of these are vital to a highly motivated workforce.
    • 7. Focusing on the “cost” of motivational programs – not the results
    • 7. Focusing on the “cost” of motivational programs – not the results
      Focusing on the “cost” of a program is short sighted.
      The real focus should be on the motivation that the program instills and the results or “lift” the program has on performance.
      Cheapest isn’t always the best!
    • Does any of this sound familiar?
    • The real question is…
    • The real question is… what to do about this?
    • First recognizing where we tend to go wrong is key
    • First recognizing where we tend to go wrong is key
      We just covered that…
    • Then we merge theory and expertise to develop solutions using…
    • Then we merge theory and expertise to develop solutions using…
      The 4-Drive ModelEmployee Motivation
      of
      Lawrence & Nohria
      2002
    • Acquire
      Bond
      Challenge & Comprehend
      Defend
      The 4-Drives
    • Acquire
      Bond
      Challenge & Comprehend
      Defend
      We need to focus on ALL 4 Drives
      together (not just Acquire)
    • Then give front line managers the tools, the training and the discretion to use them effectively
    • Then give front line managers the tools, the training and the discretion to use them effectively
      Tools:
      • Easy to use sales or performance reports
      • Manager discretionary incentives (cash and non-cash)
      • Simple “On the Spot” Awards
      • Recognition programs – peer-to-peer, manager nominated, VP review
      • Training on how to use rewards effectively / motivate employees
      Discretion:
      • Provide Managers with clear objectives
      • Create rules that are flexible enough to accommodate Managers special situations
      • Monitor only for bias and cheating
      • Utilize online platforms to manage programs and provide flexibility
      • Direct access to IC/HR team
    • Simplify, simplify, simplify
    • Simplify, simplify, simplify
      Rework your incentive plans to simplify them:
      Reduce the number of items you’re paying on (3 or less is best)
      Focus only on key results that people have control over
      Simplify the math for calculating earnings/winning
      Limit the number of qualifiers, multipliers, kickers or other factors
    • Conduct an analysis on what behaviors your reward programs are driving
    • Conduct an analysis on what behaviors your reward programs are driving
      Conduct research to ensure that your programs are:
      Driving behavior that is in-line with company strategy (e.g., profit not just revenue)
      Measuring the appropriate results / behaviors and not just those that are easy to quantify
      Have not become so entrenched that they are perceived as entitlements and not incentives
      Leveraging (not duplicating) other incentives or pay plans in the behaviors they are rewarding
    • And make sure that this is ALL communicated with a PASSION!
    • And make sure that this is ALL communicated with a PASSION!
      Utilize live meetings, well done Power Point presentations, professional print and online communications, voice mails, flash e-mails, memo’s, manager talking points, posters, etc…
    • Finally – don’t let Purchasing focus you just on the direct cost of a program – make sure you look at how the program drives motivation and results.
    • Finally – don’t let Purchasing focus you just on the direct cost of a program – make sure you look at how the program drives motivation and results.
      A program that increases sales performance 1% at a $1Billion dollar company = $10 Million in additional sales
    • Finally – don’t let Purchasing focus you just on the direct cost of a program – make sure you look at how the program drives motivation and results.
      A program that increases sales performance 1% at a $1Billion dollar company = $10 Million in additional sales
      That might just be worth a few extra thousand!
    • Make sure that you don’t make a motivational…
    • Take Action Today!
    • To find out more on how to motivate your employees
      www.lanterngroup.com
      or our blog
      http://thelanterngroup.wordpress.com/
      ©2009 The Lantern Group – use permitted with acknowledgement