The key to unlocking staff motivation has become something of a holy grail for employers. But unless they really understand what makes their people happy, and therefore engaged with their job, it remains tantalisingly out of reach.
Traditional drivers of employee motivation range from cash incentives to less tangible rewards in the form of praise and recognition from the boss for a job well done. Then there are the quirky perks, like bring your dog to work days, creative activities, and social events that could potentially translate into higher levels of motivation.
As to which are the most effective incentives, countless workplace studies have yet to produce a definitive answer.
Is money an incentive?
A survey of 2,000 SME bosses by business development consultancy Sandler Training (UK) found that over half (56%) believe pay is what motivates their staff, which probably explains why 68% also said they gave their best staff more money in the hope that they will stay with the company.
However, research carried out by online accounting and payroll services provider Sage One found that for more than a quarter of small business employees, happiness at work is being offered food and drink by their employer. Other items on their wish list included music, flexible hours and chatting with colleagues.
Adecco’s research on happiness in the workplace listed a better salary (48%), a more supportive manager (25%) and flexible working arrangements (25%) as the most important factors in creating a happy team.
Adecco Retail’s managing director Alex Fleming says: “In carrying out the research we were surprised to see that improved technology and gadgets, free food and an improved office location came in last on UK employees’ wish lists. Ultimately it seems that good management and improved benefits trump gimmicks in motivating employees and creating a good place to work.”
Socially-concious businesses
There is another facet to workplace motivation, too, having an employer with a social conscience.
“The traditional motivators of financial bonuses and quirky benefits hold less sway with employees,” says Nina Aggarwal, founder and partner at Fusion Learning. “Today, more of them want to work for an organisation with a clear purpose and conscience; giving back to the team, the local community and the world at large. People are increasingly time-poor so if the company enables them to give back in some way through their work it is a major draw.”
Make praise part of your company culture
According to Helen Rosethorn, partner at global marketing consultancy Prophet, what truly motivates staff depends on how they are feeling about their job.
She says: “If an employee is disengaged, with one foot out of the door, actively job hunting, then praise is hardly likely to make a difference. The way to create and sustain engagement in any organisation is to offer recognition for a job well done, among other things of course.
“It needs to be a way of life, and yet truthfully few companies consider how they should recognise performance in the moment, leaving it to the discretion of poorly trained line managers.”
Faddy perks aren’t enough
As they compete for their share of talent, companies have resorted to throwing an assortment of perks into the mix, from extra holidays, to workplace chill out zones, although there is little evidence to show that these alone significantly raise staff motivation.
They might compensate for some short term failings in the employment deal but, longer term, their impact will be short lived unless the fundamentals of feeling valued and being recognised for contribution to the team and the company are in place.
What is crucial is that employers find the right balance between pay, perks and good management to keep staff happy and motivated. Richard Stone, owner of communications consultancy Stone Junction believes his company has found that balance.
He says: “We offer a range of benefits including flexitime, paid charity time, an annual non-vocational training bursary, dress down weekdays and flexible benefits, supported by two monthly target-based competitions that allow each individual to choose his or her preferred reward for achieving targets.
“As a result, doing a great job can result in extra holidays, trade or professional body membership, a book, a gig or technology vouchers, or almost anything with measurable value.”
Staff also enjoy a chill room, complete with table football, retro computer games, CDs, beanbags and coffee machines, and personalised mugs for every employee.
“But the bottom line is that this doesn’t make people happy,” says Stone. “It definitely makes them more happy if they are already feeling good, but by itself it doesn’t create satisfaction. Ultimately, benefits are just ‘stuff’ and stuff isn’t what is required drive us on.”
Let staff be proactive
He advocates people having greater control of their own working destinies and a belief that everything they do makes an impact on the results of the entire team. Stone Junction operates an appraisal system with smart objectives that allow each person in the team to achieve promotion and salary increases without ‘authorisation’ from their managers.
And in creating a culture where people feel recognised, valued and empowered, it is important not to overlook that fact that money does have a role to play in employee happiness and motivation, as research by incentive solutions provider Xactly recently revealed.
It found that for over a quarter (27%) of UK employees, a financial bonus was their main motivator, although it also revealed that a large portion of employers do not run any kind of monetary incentivisation programme.
Xactly’s vice president EMEA Tom Castley says: “These findings highlight the gap between what motivates employees and what businesses are doing to engage them. The best way to boost productivity is to boost employee engagement and financial incentives are key. It is vital for organisations to ditch the one size fits all approach and tailor their compensation schemes to positively encourage their satisfied and motivated workforce.”
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