The American Society for Human Resources Management (SHRM) has identified employee engagement – inspiring and motivating people to excel at work – as the biggest challenge faced by its individual and company members. The traditional response of most organization leaders has been to throw money at the problem. In this executive brief, the author draws from his own wealth of leadership experience, and from the findings of numerous specialists in the field of leadership development and employee engagement, to offer a more compelling and effective alternative.

1. Banyan Way © 2015 Page 1
LEAP: MOTIVATING EMPLOYEES OTHER THAN WITH MONEY
The American Society for Human Resources Management (SHRM) has identified
employee engagement – inspiring and motivating people to excel at work – as the
biggest challenge faced by its individual and company members. The traditional
response of most organization leaders has been to throw money at the problem. In this
executive brief, the author draws from his own wealth of leadership experience, and
from the findings of numerous specialists in the field of leadership development and
employee engagement, to offer a more compelling and effective alternative.
TRISTAN B DE LA ROSA
Founder & Principal Coach
www.thebanyanway.com

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In a landmark study conducted by the leadership consultancy group, Zenger Folkman,
involving over 200,000 assessments on almost 20,000 leaders, 16 behaviors spanning
5 categories emerged as the most critical attributes of an effective leader (see box).
Of these 16, the best predictor of a leader’s effectiveness – the quality that most
differentiates the high- from the low-performing executives and that directly correlates
with employee engagement
& commitment – is “Inspires
and Motivates Others”.
Within this context, it is
worrisome that the Gallup
Employment Engagement
Index, reports that 42% of
the global workforce mention
being disengaged at work.
Based on a separate Cornell
University study, disengaged
employees are five times
more likely to quit their jobs.
On the other hand, organizations that have the most degree of employee engagement
report shareholder values that are five times higher than those whose employees are
least engaged.
Interestingly, if one were to ask organization leaders if they had an employee
engagement strategy, many would answer in the affirmative. They would proudly point
to their compensation and performance incentive programs as the crown jewel in such a
strategy, their “market-leading” twist to an albeit traditional “carrot and stick” model.
Money is important but…
The fact is that while money is important, it is not the most crucial determinant of
employee engagement. A study by DRInc, a leading executive search firm, found that
88% of employees quit for reasons other than money. In a McKinsey study on factors
driving motivation, respondents rated “Praise and Commendation from Managers”
ahead of “Increase in Base Pay”, 67% vs 63%. The “Opportunity to Lead Projects” is
almost as important as the money factor (62%) and far outweighs “Stocks and Stock
Options” (35%).
“Praise and commendation from managers” and the “opportunity to lead projects” are
but a few of the elements that make up LEAP – principles not built on money but which
effectively drive motivation. LEAP is an acronym for (L)earning, (E)mpowerment,
(A)cknowledgement, and (P)urpose.
Zenger Folkman Leadership Model
A. Character 1. Displays honesty and integrity
B. Personal
Competency
2. Exhibits technical and professional expertise
3. Solves problems and analyzes issues
4. Innovates
5. Practices self-development
C. Results Focus
6. Focuses on results
7. Establishes stretch goals
8. Takes initiative
D. Interpersonal
Skills
9. Communicates powerfully and broadly
10. Inspires and motivates others
11. Builds relationships
12. Develops others
13. Collaborates and fosters teamwork
E. Leading Change
14. Develops strategic perspective
15. Champions change
16. Connects group to outside world

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Learning: Helping employees grow to their full potential…
Blessing White, a global employee engagement and leadership development company,
reports that the number one factor across most geographies that impact employee
engagement is “career development and training”. This should not come as a surprise
for leaders. Most people join organizations not just to have a job but to flourish in a
career. Opportunities for professional growth, learning, and development are, therefore,
essential to employee performance and retention.
In a study by the American Psychological Association, the number one source of work
discontent is “limited opportunities for professional growth”. In the DRInc study on why
employees quit their jobs, a major factor is that “Management does not help employees
learn new skills.”
The responsibility of the inspirational leader then is to provide learning opportunities for
followers, to invest in their training and development. Doing so sends the message that
the company cares for the career of its employees and values their contributions.
Employees develop new skills that enhance their personal and professional worth. The
company gains from having a workforce that is not only better skilled but also highly
driven and motivated.
Many leaders stick to the notion that the responsibility for training and developing their
people rests with the Human Resources group. Nothing can be farther from the truth.
Employees must see their leader flying the flag, charging up front and fighting hard for
their growth and development. While Human Resources as a functional enabler can
provide more structured broader-based education and development programs (eg,
seminars, workshops), a leader can employ more direct and technically-relevant training
opportunities for his employees.
Among the tools that an executive can most directly and immediately use in developing
employees is on-the-job coaching. This involves sitting down with an employee to
establish her development goal and identify at-work opportunities to achieve this.
Throughout the coaching process and at pre-agreed milestones, the executive needs to
have regular conversations with the employee to monitor her progress and undertake
course corrections as may be needed.
Beyond on-the-job coaching and as noted in the McKinsey study mentioned earlier, the
“opportunity to lead projects” is a factor almost as important as “increase in base pay” in
driving employee commitment and engagement. A leader should consider assigning
strong performers to head challenging projects. This not only gives them the chance to
learn but, equally important, the opportunity to shine and be acknowledged. Other
ideas to consider along this direction include:
 Inviting good performers as observers or junior participants in high-level meetings
inside (eg, management board, executive committee) and outside the organization
(eg, senior client meetings);

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 Designating them as “alternates” in trade associations, business clubs, and other
organizations where senior leaders are official members; and
 Assigning them to high-visibility cross-functional/cross-division task forces with the
authority to decide in the leader’s behalf
Empowerment: trusting people and letting go…
Empowered employees are engaged employees.
This is not an assertion but an observed fact: Towers Watson, a leading global
professional services company specializing in human resources management, found
that 88% of engaged employees feel “they are empowered and believe that they can
positively impact the quality of their organizations”. In contrast, only 38% of disengaged
employees feel the same way about themselves and their organizations. Among the
major reasons people quit their jobs as reported by Gregory Smith, a noted leadership
development consultant, is that “Management does not allow employees to make
decisions or allow them the pride of ownership.”
The responsibility then of a leader who wishes to fully engage, energize, and motivate
his followers is to maximize opportunities for empowering them. We define
“empowerment” as one where a leader is willing to share authority and responsibility
down the line in order to accomplish the organization’s goals without giving up personal
accountability for the results. Delegation does not mean abdication.
In most cases, it is the second part of the definition – continuing to be accountable for
results – that stops executives cold from being more empowering. They are reluctant to
delegate, afraid that should their subordinates fail, this would reflect on their own job
effectiveness. Hence, they either monopolize the important tasks themselves or involve
subordinates but micro-manage, overseeing their work to the smallest detail.
Short-term, a non-empowering leader may assure himself that the work coming out of
his area is acceptable. However, in the medium- to long-term, with his insistence on
doing everything himself, he is overwhelmed and burns out, subsequently and
increasingly delivering bad results. He becomes blind to the bigger landscape he
operates in; fails to see the horizon and the strategic opportunities & threats facing his
organization, and loses good people. He may also eventually lose his own job, his
health, and his sanity.
A conundrum presents itself: how does a leader empower his people but, realizing he is
ultimately accountable for results, ensure they do not fail? Investing in their
development as discussed above, will go a long way to mitigating failure. But will not
stop it. The enlightened leader recognizes this fact.
Instead of being scared of failure, the inspirational leader willingly embraces it. Nike’s
“Just do it!” can be seen as an admonition for leaders to trust their employees and be

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willing to let go. While hoping for success and putting in place contingencies to avert
missteps, in the end the enlightened leader understands that failure is a possibility.
Rather than be cowed, he transforms failure – if it happens – into a learning opportunity.
Failure is an essential ingredient for discovery and growth. To paraphrase Sir Richard
Branson: “You are not learning if you are not failing.”
Importantly, innovation happens when one embraces the risk of failure. Thomas Edison
failed almost a thousand times before finally discovering the correct filament for his light
bulb. When his critics confronted him about this, Edison bluntly corrected them saying:
“I did not fail 999 times. I learned 999 ways how not to do it.”
In net, a leader views employee Empowerment not with dread but as a powerful
business principle. It creates employee engagement and drives motivation. With the
embrace of failure as a vital ingredient for learning, it builds a culture where
entrepreneurship and innovation thrive. It will also save him his own health and sanity.
Acknowledgement: recognizing work well-done…
In a simulated work experiment by noted behavioral economist and author, Dan Ariely,
participants in one group (the “Acknowledged Group”) were asked to decode a simple
puzzle. Each participant was then told to write his name and answer on a piece of paper
and to hand this over to a proctor. The proctor reads the participant’s name and answer,
nods his head, and places the paper on a stack. The participant is paid $0.60, and is
asked if he would like to decode another puzzle but for $0.06 less, or $0.54. The
participant could go on doing this, each time receiving $0.06 less than the previous
round. Every time a paper is submitted, the proctor reads the participant’s name and
answer, nods his head, and places the paper on the stack.
In a second group (the “Ignored Group”), participants were asked to decode the same
puzzles. However, unlike those in the first group, they were told not to write down their
names, only their answers. Upon submission and in full view of the participants, the
proctor does not bother to read the answers but simply places the papers on a stack.
Without knowing if an answer were correct, the proctor pays a participant the same
beginning and succeeding rates as in the first group.
In a third group (the “Shredded Group”), participants were asked to decode the same
puzzles, and like the second group write down only their answers. Upon submission the
papers are immediately shredded by the proctor. As with the second group and using
the same pay scale, the proctor pays even without reading the participants’ answers.
The “job” involved in this experiment may be prosaic but the implications of its results
are profound: people who are acknowledged and recognized for what they do are
significantly more inspired and motivated than those who are not. On average the
“Acknowledged Group” worked and submitted 60% more answers per participant than
those in the “Ignored Group”, and fully 100% more than those in the “Shredded Group”,

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8 vs 5 vs 4. (Interestingly, those in the “Ignored” and “Shredded” groups could
potentially have made more money by submitting more answers since these were not
being checked anyway. The participants in the experiment were clearly being honest,
but this may not be the case if this were scaled up to the real world.)
The responsibility then of a leader who wishes to inspire and motivate his followers is to
generously acknowledge their contributions. As noted in the McKinsey study, “Praise
and commendation from managers” rated highest in driving motivation. This idea is not
hard to learn. For many leaders though, it is hard to do. It is common sense. But it is not
common practice.
Leaders usually point to their formal employee recognition programs, many of them with
catchy names such as “The Employee Wall of Fame”, “The Chairman’s Club”, “The
Presidential Honor Roll”, and the like. While these programs are to be lauded, the
structured, oftentimes bureaucratic, and time-bound process in administering and giving
awards (monthly, quarterly, annually) robs them of the immediacy and spontaneity
crucial to recognizing and reinforcing exceptional work. A good job needs to be
acknowledged as quickly as possible in order to reinforce its value. An employee who is
recognized for a job well done 6 or 12 months later, and while in-between is ignored,
could hardly be faulted for being cynical of the award and of his superiors.
Acknowledging an employee need not wait for next quarter’s (or the year-end) awards
night. In fact, the opportunity to do so should be something that a leader can and should
be on the lookout for every work day. “Catch them doing something right” is good
advice, underscoring the need for leaders to be purposive in identifying good work by
employees as it happens.
Acknowledging in the moment can be simple and spontaneous, but warm and sincere
with words of affirmation such as “Well done”, “Good job”, and “Thank you”; or even with
something cool and physical such as a high-five or a fist-bump. These more immediate
forms of affirmation may be supplemented with a short e-mail, perhaps with a copy to
others in the team including more senior members so that they too may add their own
compliments or be similarly inspired in the future. For more meaningful achievements, a
celebratory gesture – coffee or maybe even lunch or dinner – might be appropriate.
In acknowledging employees, leaders need to recognize them as fellow human beings
and not just human resources to be utilized as automatons in pursuing corporate goals.
Executives most likely spend more hours each day with their people at work than they
do with their families. Yet beyond what is written on resumes, many of them only have a
superficial knowledge of their employees. Without stepping into more sensitive areas in
their employees’ private lives, executives should know more about their people beyond
what they see and learn at work, for instance: their families, what they do on their free
times, their dreams and personal aspirations. And a leader must equally open himself
up to his employees. In the words of Pope Francis – named the “World’s Greatest
Leader” by Fortune Magazine in 2014 – a leader “must smell like his flock.”

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As a result, work relationships are less stiff, opening the way for smoother, more
productive interactions. An invisible bond between the leader and his followers is
created as they come to realize
that he is not distant and
untouchable; but simply another
human being with similar
personal concerns, the same
issues with life, who loves and
laughs, feels pain and cries, just
like anybody else.
One leader who “smells like his
flock” is Herb Kelleher, the
legendary CEO of Southwest
Airlines. In a turbulent era when
airlines like United and Delta
were losing billions and
declaring bankruptcy, South-
west remained highly profitable.
For many years, it won the
unofficial “Triple Crown” of the
industry: fewest customer
complaints, fewest delays, and
fewest mishandled bags. For
Kelleher, “… you have to be with your employees through all their difficulties (and) you
have to be interested in them personally.” On Boss’ Day 1994, all 16,000 of his
employees took out a full-page print ad in USA today to greet him (see box).
It is easier for people to follow leaders who they feel are in touch with and understand
them than someone who is cold and aloof. As one executive puts it: “People don’t care
how much you know until they know how much you care.”
Purpose: finding meaning in work
In another experiment by Ariely, a group of participants was asked to assemble Lego
toys. Each participant would be paid $3.00 for the first toy assembled, $2.70 or $0.30
less for the second, $2.40 or another $0.30 less for the third, and so on. At the end of
each round, the participants observed their crafted toys being carefully, almost
reverently, stored in a box.
In a second group, participants were asked to assemble identical Lego toys, with each
one also being paid the same starting and succeeding rates as those in the first. The
difference versus the other group, however, is that at the end of each round the toys
On Boss’ Day 1994, the employees of Southwest
Airlines bought and paid for this full-page ad in USA Today. It
was addressed to Herb Kelleher, the company CEO.
Thanks Herb
 For remembering every one of our names.
 For supporting the Ronald McDonald House.
 For helping load baggage on Thanksgiving.
 For giving everyone a kiss (and we mean everyone).
 For listening.
 For running the only profitable major airline.
 For singing at our holiday party.
 For singing only once a year.
 For letting us wear shorts and sneakers to work.
 For golfing at the LUV Classic with only one club.
 For outtalking Sam Donaldson.
 For riding your Harley Davidson into Southwest HQ.
 For being a friend, not just a boss.
Happy Boss’ Day from Each One of Your 16,000 Employees.

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would be unceremoniously quashed before the very eyes of the participants and, with
no explanation, handed back to be reassembled.
As in the puzzle experiment, the “job” done here by the participants seems trivial but the
implications of its results are no less enlightening: people who see meaning in their
work are significantly more motivated than those who are frustrated and find no purpose
in what they do. The first group that saw their Legos stored in a box made 57% more
toys on average per participant compared to the second, 11 vs 7. With exactly the same
degree of effort, the participants in the second group could have made as much money
as those in the first yet elected not to do so.
More than money, employees need to appreciate the purpose of their work; and the
executive who inspires and motivates is one who helps them do so. A leader recognizes
that everyone longs to be part of a greater purpose. The worker running the bottle
capping machine in a soft-drinks line needs to know that he is part of a great enterprise
that refreshes and brings smiles to people. The encoding clerk in a hotel backroom
would appreciate knowing that she makes it possible to bring rest and comfort to the
world-weary traveler. The airline baggage loader would be glad to know that a little girl
halfway around the world would get her father’s plush toy gift in time for her birthday.
Most major organizations today have lofty, highly inspirational Mission & Vision
statements. However, in most cases, these statements remain simply as words
embossed on a plaque adorning the reception wall. Beyond impressing guests who
bother to read them, the words have little or no meaning for employees.
The responsibility of each leader then is to take the organization’s Mission & Vision
statement and help his employees understand how their respective jobs are vital in
helping towards its accomplishment. The same as the soft drinks worker, encoding
clerk, and baggage loader, each employee needs to connect what she does every day
to the company’s loftier purpose. It must be the aim of the leader to use this connection
as the motive force to inspire and engage his people.
To summarize…
The American Society for Human Resources Management (SHRM) has identified
employee engagement – inspiring and motivating people to excel at work – as the
biggest challenge faced by its individual and company members. The traditional
response by most leaders is to throw money at the problem. We suggest that leaders
consider LEAP as a more compelling and effective alternative: provide Learning
opportunities for employees to grow and flourish in their careers; Empower and allow
them pride of work; Acknowledge their contributions and recognize them as fellow
human beings; and help them find Purpose and meaning in their work.

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About the Author:
Driven by a personal mission to “take executives to the edge
and push them to fly – as leaders”, Tristan B de la Rosa is
the Founder & Principal Coach of Banyan Way, a Chicago-
based executive coaching and development company. He
has served in the Coaching Advisory Board & Faculty of the
School of Continuing Studies of Northwestern University;
and as a Coaching Resource & Facilitator at the Asian
Institute of Management.
Tristan brings an uncommon blend of masterful real-world
experience and rich multi-national & multi-cultural insight to
the Executive Coaching field. Tristan has held managing
director and other senior leadership positions in Fortune 100
companies, among them Johnson & Johnson, Kraft General
Foods, and Procter & Gamble; and has had direct working
experience in some of the world’s most dynamic markets,
including China, India, South East Asia, Brazil, and the
United States. Tristan is based in Chicago where he shares
a home with his wife, Marilyn.
Contact Tristan at tristan.delarosa@thebanyanway.com.