It's Not About the Money

The constant stream of negative news in our industry makes it difficult to motivate employees and sustain morale. To borrow a line from “American Pie” (the song, not the movie), there seems to be a lot of “bad news on the doorstep”. It’s become a daily challenge for owners and executives to keep their teams focused and energized. However, don’t think hope has taken the last train for the coast; there are steps you can take that are simple, sustainable and require little or no money. Read on...

Understanding What Truly Motivates People

A really smart guy by the name of Dr. Frederick Herzberg led a study in the 1960’s and identified six factors that truly motivate people.

• Feeling of Achievement
• Recognition / Status
• Continuous Learning
• Responsibility
• Meaningful Work
• Advancement Opportunity

These motivators become self-evident when employees take the initiative without being asked, go the extra mile or become intensely focused on their work. And, they vary from person to person.

Notice how money is missing from the list above? That doesn’t mean it’s not important. Herzberg found six drivers that aren’t motivators but when overlooked, lead to dissatisfaction among employees. He calls them “hygiene” factors:

• Salary / Compensation
• Job Security
• Supervision / Mentorship
• Policies / Procedures
• Work Conditions
• Interpersonal Relationships

What You Can Do

First things first: let's recognize that two of the significant Hygiene factors– Salary and Job Security, are big question marks at the moment. As much as you would like to pay your employees more or assure them job security, the market conditions might not support it. That’s the cold, hard truth so no need to dance around it.

However, there are many things employers can do for their employees that have nothing to do with that. As Dr. Gary Williamson, an industrial psychologist with PSP Metrics notes, “Five of the six motivators have nothing to do with money or promotion, therefore there is no reason (for an employer) to not provide them.”

• Step 1: ask your employees to force rank what matters most to them among the following motivators: Feeling of Achievement, Recognition / Status, Continuous Learning, Responsibility, Meaningful Work.

• Step 2: do the same exercise for the Hygiene factors that you as an employer have control over: Supervision / Mentorship, Policies / Procedures, Work Conditions, Interpersonal Relationships.

Remember, these twelve drivers vary from person to person and can change over time. Recognition and Achievement might be high on the list for someone in his/her 30’s but shift to Meaningful Work as they mature. Your goal is to learn what really matters most to each employee today... the top 1-2 drivers for them in both categories that you CAN control... and do something about it.

Want to learn more? We came across this entertaining video that demonstrates what we’re talking about. Enjoy! http://www.youtube.com/watch?v=u6XAPnuFjJc

Credits:

• “One More Time: Answers for Motivating Today’s Employees”, Dr. Frederick Herzberg, courtesy of PSP Metrics.
• Dr. Gary Williamson, Managing Partner, PSP Metrics, Pittsburgh, PA

What Makes Companies Successful

Ever wonder what makes some companies more successful than others? Some insights were offered by David Gardner (cofounder of the Motley Fool) in an interview with business writer Will Deener. Gardner's stock picking strategy includes more than just what's on an income statement or balance sheet. The financial data has relevance, but he places as much or more emphasis on the following: what really makes a company tick...

• What is the company’s culture?
• What is the value of its brand?
• What is the personality of the management team? Does the CEO embrace a sense of humor? Tip: people perform better when they work with people they like.
• Is the company innovative and creative?

Gardner: “It may be hard to express those things as a number, but they’re a lot more tangible and real than a lot of things on an income statement. If you can’t make people smile or laugh, it doesn’t mean you’re a bad person, I’m just not interested in your company."

Regarding the ability to innovate or be creative: Gardner likes to invest in companies that have the ability to disrupt competitors through innovation. Example: Netflix, which blindsided its main competitor (Blockbuster) with a different delivery model of the same product. Since entering the movie rental arena in 2004, Netflix share have risen from $17 to $220 while Blockbuster struggles to reinvent itself and simply survive.

PS: if innovation is something you thrive on, check out Different by Youngme Moon. It's chocked full of case studies similar to the Netflix example.

Leadership in Tough Times

The burden of the economic recovery extends beyond unemployment statistics, business failures and the erratic financial markets. It forces us to modify our behavior on several fronts, personally and professionally. How it impacts the leadership role was a topic of discussion at a recent industry association meeting. Here are the highlights:

Communicate (more often)

• It’s not enough to simply communicate with your team– for maximum effectiveness it must occur frequently. This goes a long way to curbing speculation and helping team members stay focused.
• Withholding relevant information leads to speculation, rumors and hearsay. If bad news lands on the doorstep, better to share it than not.
• Share only what needs to be shared; don't over-inform. People deserve to hear the truth, but not beyond the facts that pertain to them.
• Take internal audits to gauge team members’ state of mind: what are they feeling, what are their needs, what can you do to support them?
• Tip: It’s perfectly fine to not have answers to every question or comment; listening is the first step to being an effective leader (and probably the most difficult for people in leadership!)

Model the Right Behavior

• You don’t have to be the first to arrive and the last to leave every day, just make sure you’re not a LIFO– Last In, First Out.
• Do more than is required and not just in your area of responsibility. Pitching in to help others– above or below your rank– is the at the heart of servant leadership.
• Remember, nothing kills morale more than a leader labeled as “Do as I say, not as I do.”

Engage the Team

• The ability to adapt to changing environments or market demands is critical to the success of any business. The same is true of the people on your team. Help them break free from the routine by encouraging feedback.
• Step 1: make certain everyone understand the basics well and are pursuing those standards consistently. No need to try building on a weak foundation!
• Step 2 : keep everyone focused daily on the “work at hand” or in Zen terms, “being in the moment”. This helps minimize distractions, gossip and needless speculation.
• Step 3: ask for input, ideas and feedback then, actually try some of them. Celebrate the successes (loudly), no matter how small the impact. In times like these, your team needs every win it can get.