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Successful Motivation

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Employee Recognition That Works! Successful Motivation Mary Anne Shew Business Vitality LLC RBA HR Exec Forum 4/1/2014


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2 Happy employees = productive employees Your Dream


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3 Self-motivation versus external “nagging” Your Dream


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4 Creativity unleashed Your Dream


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5 Budget pressures Problem


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6 Deadline pressures Problem


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7 Raises / bonuses / promotions in short supply Problem


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8 Solution: Think Differently


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9 The Motivation Match-Up


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10 The Motivation Match-Up


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11 Mary Anne Shew


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Understand Six Motivators Organize Rewards Match with Employees 12 What we’ll cover Preface: Set Context


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13 Context is everything…


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14 Employee turnover costs (See Employee Turnover Cost Handout) What could your company do with an extra $54,000+ every year? For 75-person company, 10% annual turnover of $30K-salary employees costs $54,000 per year, not including cost of productivity losses.


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15 Employee turnover costs (See Employee Turnover Cost Handout)


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16 Recognizing and valuing It’s a difference in experience


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17 Recognizing and valuing “I receive recognition when I do good work.” Across industries and countries: Average score is 55% favorable For top 10% of companies: 66% But rest of their scores in 80-90% range So even they don’t do as well as they could in recognition “I feel valued as an employee of this company.” When asked, average score is 41% favorable, 32% unfavorable


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18 Recognizing and valuing


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R&R is part of a system 19 Attachment to the company and willingness to give discretionary effort A local work environment that supports productivity and performance Individuals’ physical, interpersonal, and emotional well-being at work Well-functioning equipment Necessary supplies on hand Effective work processes Clear direction from supervisors Clear priorities Effective teams Respectful colleagues Expectations balanced against pressures Attitude towards immediate manager Senior leadership Work/life balance Goals and Objectives Company image


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20 R&R is part of a system What are you rewarding? If focus is on vital behaviors that have intrinsic satisfaction, and Social support is in place for vital behaviors, THEN external rewards work well.


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21 R&R is part of a system Vital behavior is the key concept A high-leverage behavior that makes the difference What does a person do that gets the desired outcome? Reward a vital behavior, and the outcome will take care of itself


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22 Examples of Vital Behavior Weight loss: Lost 30 lbs and kept it off for 6+ years Exercised on home equipment Ate breakfast Weighed themselves daily


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23 Examples of Vital Behavior Epidemic: Eliminated infectious worm spread through drinking water Strained all drinking water Kept infected people away from water source Entire village took responsibility for compliance


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24 Who’s On Your Front Lines? Supervisors and Managers


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25 What are their vital behaviors? (See Handout Pages 2-3)


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26 Leadership Management Supervision Emotional IQ Communication Goal Setting Time Management Conflict Management Research Manufacturing Engineering Production Product/Service Marketing Sales Finance Accounting IT How prepared are they for their jobs? Job: Managing people Promoted They started career here Job: Doing the work Now need to do these


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Build it starting from the top down If senior management doesn’t exhibit R&R vital behavior themselves, first-line managers won’t believe it’s an important part of their own job either 27 Culture of recognition


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28 Individuals—regardless of rank, title, expertise, or tenure—freely and readily recognize one another’s contributions Thoughtful, timely, personal Keep it fresh and meaningful Avoid “rote recognition” that has no real purpose or thought behind it Culture of recognition


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29 (See Handout Page 5) Culture of recognition TRUST is a key foundation for effective rewards and recognition Four components of trust: Sincerity, Reliability, Competence, Caring If Caring (a.k.a. “valuing”) is missing, R&R efforts will likely not pay off as you hope, even if other 3 components are in place


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Part 1 30


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An internal process that makes a person move toward a goal Can’t be directly observed Can only infer from behavior Internal: Survival, pleasure, achievement External: Money, award, connection to others 31 Part 1 What is motivation?


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Three internally-focused Material possessions Self-improvement Sense of mission 32 Part 1 Six Universal Motivators (See Handout Page 4)


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Three externally-focused Personal relationships Sense of belonging Status and recognition 33 Part 1 Six Universal Motivators (See Handout Page 4)


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Everyone is motivated to some level by all six motivators, some more strongly than others. Placing too much importance on any one motivator will cause that person to over-focus on that motivation. These motivators can be measured by an assessment. 34 Part 1 Six Universal Motivators


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People with a more balanced motivation mix tend to have more motivators to which they are drawn. These people respond to a wider rage of rewards. 35 Part 1 Six Universal Motivators


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People with a more focused motivation mix tend to have fewer motivating forces. This means they often respond more intensely to them. 36 Part 1 Six Universal Motivators


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How to know what works? Get to know your people Ask them what they like and want Surveys, 1-1 or group discussions, assessments Experiment No single way to reach everyone The Generations: See Handout p. 6 37 Part 1 Six Universal Motivators (See Handout Page 5)


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Part 2 38


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Principles of reward You get what you reward Must be in response to something significant Timely, specific, meaningful Immediate manager has huge impact 39 Part 2 Organize Rewards


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40 R&R is an ongoing investment Mostly of time and thought Do free things first Invest in teaching “valuing” behavior Evaluate what you already have in place for impact Get anonymous employee feedback through survey Part 2 Organize Rewards


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41 Consider having an employee group organize R&R awards and events. Teach them to incorporate the six types of motivation and match generational appeal Give them copies of 1501 Part 2 Organize Rewards


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42 Why go through all this?


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43 “Companies that manage people right will outperform companies that don’t by 30-40%.” --Jeffrey Pfeffer, Stanford Business School Professor 2012 Industry Profit Margins 2.9% Food & Staples Retailing 19.5% Pharma, BioTech, Life Sciences 8.4% Capital Goods 20.2% Software& Services Impact on your company?


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44 Cost to replace employee with salary up to $75K: 20% of salary --2012 Study by Center for American Progress


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45 “Effectively recognizing performance can increase employee engagement by almost 60%.” --Towers Watson Report: http://bit.ly/1bQv499


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46 “Companies with values-based strategic recognition, 91% of employees feel they have strong grasp on goals and objectives.” --Globoforce.com Respect Account- ability Integrity


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We’re in the home stretch… 47


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Part 3 48


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The best recognition is FREE 49 Part 3 Match Rewards to Employees


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50 Part 3 Match Rewards to Employees 1501 is a comprehensive, well-written, easy-to-read handbook for all aspects of reward and recognition The ideas listed were implemented at hundreds of companies across many industries


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51 Part 3 Match Rewards to Employees Use the 1501 book to Select ideas that fit your culture, budget, and employees’ interests Organize the ideas to match the motivators


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52 Part 3 Match Rewards to Employees Then Let employees choose a reward from what you’ve chosen (when appropriate), or take a guess yourself Use humor and fun too


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53 Part 3 Match Rewards to Employees


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54 Summary: The Motivation Match-Up Reward and recognition is part of a system Valuing employees sets the stage How well it works depends on the other parts


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55 Summary: The Motivation Match-Up


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56 Successful Motivation Resources


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57 Mary Anne Shew www.BizVitality.com | 585-746-9140 mashew@BizVitality.com Wishing You Motivation Success!


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