Mo Money, Mo Problems: How Money Can Hurt Employee Motivation

MO MONEY, MO PROBLEMS HOW MONEY CAN ACTUALLY HURT EMPLOYEE MOTIVATION THE ABILITY TO MOTIVATE EMPLOYEES IS ONE OF THE GREATEST SKILLS AN ENTREPRENEUR CAN POSESS; however, the path to motivation isn't paved with $100 bills. Employees are looking for emotional support and understanding more than financial benefits. 42% 90% 75% Currently, 42% of the global workforce says they are disengaged at work. 90% of leaders say employee engagement is Yet 75% do not have an employee essential to their businesses. engagement strategy. WHY IS EMPLOYEE MOTIVATION IMPORTANT? ENGAGED EMPLOYEES GET THE JOB DONE RIGHT. UNENGAGED EMPLOYEES ENGAGED EMPLOYEES DIFFERENTIATE YOU FROM COMPETITORS. COST YOU MONEY. According to Gallup researchers, disengaged workers cost United States businesses nearly $350 billion a year. Companies in the top 10% of employee engagement surpassed their competition by 72% in earnings per share. Engaged employees are 50% more productive than unengaged employees. MONEY IS A MOTIVATOR, BUT NOT THE BI ONE. Some may think that money or financial incentives are the most effective way to motivate employees but, according to McKinsey Quarterly, that isn't the case. MOTIVATING FACTOR: PERCENTAGE OF RESPONDENTS INDICATING EFFECTIVENESS: PERFORMANCE-BASED 60% CASH BONUS PRAISE AND COMMENDATION 67% FROM MANAGER INCREASE IN 52% BASE PAY ATTENTION FROM 63% COMPANY LEADERSHIP STOCK OR STOCK OPTIONS 35% OPPORTUNITY TO 62% LEAD PROJECTS IF EMPLOYEES DON'T WANT MONEY, WHAT DO THEY WANT? According to author Dan Pink, 3main factors lead to better performance, higher motivation, and personal satisfaction. 1. AUTONOMY Employees have an innate desire to be self-directed. Typical management overrides that desire and turns employees into robots that are told what to do and when to do it . not very motivating, as you can imagine. 2. MASTERY People simply want to get better at what they do. Overcoming a challenge or finding a creative solution to a problem is a characteristic that strongly motivates employees. 3.PURPOSE Perhaps the greatest employee motivator is cultivating a sense of purpose. Ifemployees feel like they are contributing to the greater good, they will be driven and energized in their tasks. EMPLOYEE MOTIVATION CHECKLIST! 5 LANGUAGES OF APPRECIATION IN THE WORKPLACE WORDS OF AFFIRMATION Encouraging and affirming words can reinforce an employee's desire to feel wanted or needed. ACTS OF SERVICE Helping employees get tasks done or working collaboratively on projects can motivate employees by evoking a sense of teamwork and purpose. QUALITY TIME 3 One-on-one time with a manager or other co-workers can lead to better insight into employees' needs and can increase motivation. PHYSICAL TOUCH This could be expressed through a high five, fist bump, or congratulatory handshake. TANGIBLE GIFTS The key to an appropriate gift in the workplace is thought, not the amount of money you spend on the gift. Taking the time to notice what your employees like (coffee, chocolate, sports, books) and buying them small, related gifts is a great way to motivate your workforce. SOURCES Gallup Employee Engagement Index www.stanford.edu/-nbloom/WFH.pdf www.mckinseyquarterly.com/Motivating people_Getting beyond money_2460 www.inc.com/ilya-pozin/9-things-that-motivate-employees-more-than-money.html www.appreciationatwork.com Clarity THE ENTREPRENEUR'S LIFELINE http://clarity.fm