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1、How Companies Get Motivation WRONG!,Kurt Nelson,Many companies get motivation right,Many companies get motivation right,Yeah for them!,But many companies get motivation wrong,And some get it spectacularly wrong!,And some get it spectacularly wrong!,Ouch!,And thats not good,And thats not good,Decreas
2、ed Motivation Leads to: Lower productivity Higher turnover Decreased sales Lack of creativity,In our work with companies across the country, we have had the opportunity to examine why this happens,In our work with companies across the country, we have had the opportunity to examine why this happens,
3、And understanding is the first step in getting it RIGHT,Focus only on money No manager discretion No manager tools Too complex Wrong measure Communication Fixated on costs,Here is a short list that describes just a few of the more common mistakes that weve seen,1. Focus too much on the drive to Acqu
4、ire (i.e., the pay plan),1. Focus too much on the drive to Acquire (i.e., the pay plan),Companies that do motivation right have a comprehensive plan that emphasizes more than just pay. They focus on:,Teamwork Work Environment Work/Life Balance Growth Opportunities,New Challenges Commitment to Ideals
5、 Corporate Identity Broader Purpose for Employee,2. Dont give front line managers enough discretion,2. Dont give front line managers enough discretion,Front line managers typically have the greatest impact on individual employees perception about the company. Limiting how they can motivate or not tr
6、usting them to do it right decreases their motivational effectiveness.,3. Dont give front line managers enough tools,3. Dont give front line managers enough tools,Companies that do motivation right provide their managers with:,Motivational Training (e.g., “How to Motivate 101”) Discretionary Reward
7、Programs Easy to Use Reports Motivational Support from home office “On the Spot” Awards,4. Making incentives too complex,4. Making incentives too complex,While companies might want to make their IC plans more complex to try to ensure fairness or meet certain budget expectations The more complex and
8、harder they are to understand, the less effective incentive plans are at driving behavior change.,5. Rewarding the wrong things,5. Rewarding the wrong things,Too often, companies good intentions can lead to rewarding the wrong behavior. The most common mistakes: Rewarding things that are not in alig
9、nment with strategy Reward things because they are easy to measure Rewards have become entitlements and perceived as “unchangeable”,6. Not communicating enough,6. Not communicating enough,Highly motivating companies over communicate to their employees regarding their: Pay Plans Total Rewards Strateg
10、y Reward Culture Company Mission All of these are vital to a highly motivated workforce.,7. Focusing on the “cost” of motivational programs not the results,7. Focusing on the “cost” of motivational programs not the results,Focusing on the “cost” of a program is short sighted. The real focus should b
11、e on the motivation that the program instills and the results or “l(fā)ift” the program has on performance. Cheapest isnt always the best!,Does any of this sound familiar?,The real question is,The real question is what to do about this?,First recognizing where we tend to go wrong is key,First recognizin
12、g where we tend to go wrong is key,We just covered that,Then we merge theory and expertise to develop solutions using,The 4-Drive Model Employee Motivation,of,Lawrence & Nohria 2002,Then we merge theory and expertise to develop solutions using,Acquire,Bond,Challenge & Comprehend,Defend,The 4-Drives,
13、Acquire,Bond,Challenge & Comprehend,Defend,We need to focus on ALL 4 Drives,together (not just Acquire),Then give front line managers the tools, the training and the discretion to use them effectively,Then give front line managers the tools, the training and the discretion to use them effectively,To
14、ols: Easy to use sales or performance reports Manager discretionary incentives (cash and non-cash) Simple “On the Spot” Awards Recognition programs peer-to-peer, manager nominated, VP review Training on how to use rewards effectively / motivate employees,Discretion: Provide Managers with clear objec
15、tives Create rules that are flexible enough to accommodate Managers special situations Monitor only for bias and cheating Utilize online platforms to manage programs and provide flexibility Direct access to IC/HR team,Simplify, simplify, simplify,Simplify, simplify, simplify,Rework your incentive pl
16、ans to simplify them: Reduce the number of items youre paying on (3 or less is best) Focus only on key results that people have control over Simplify the math for calculating earnings/winning Limit the number of qualifiers, multipliers, kickers or other factors,Conduct an analysis on what behaviors
17、your reward programs are driving,Conduct an analysis on what behaviors your reward programs are driving,Conduct research to ensure that your programs are: Driving behavior that is in-line with company strategy (e.g., profit not just revenue) Measuring the appropriate results / behaviors and not just
18、 those that are easy to quantify Have not become so entrenched that they are perceived as entitlements and not incentives Leveraging (not duplicating) other incentives or pay plans in the behaviors they are rewarding,And make sure that this is ALL communicated with a PASSION!,And make sure that this
19、 is ALL communicated with a PASSION!,Utilize live meetings, well done Power Point presentations, professional print and online communications, voice mails, flash e-mails, memos, manager talking points, posters, etc,Finally dont let Purchasing focus you just on the direct cost of a program make sure you look at how the program drives motivation and results.,A program that increases sales performance 1% at a $1Billion dollar company = $
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