What DOES and DOES NOT Motivate Employees???
What attracts talented people to your and what pushes them to leave the company?
Attraction
Everyone does things for a variety of reasons, but when it all comes down
to it. People are motivated and unmotivated by a few factors. Leaders need to know what the primary motivators
are for employees and potiential employees to want to come to their organization. Is it compensation
(money), is it health benefits, is it the atmosphere? From that point, leaders should be investigating what makes their people stay with the organization or company.
Taking that a step further what makes their employees want to give discretionary effort? (Discretionary effort is an
employee’s willingness to go above and beyond.)
So what is currently motivating employees in
the United States?
*Top 5: Attractors
1. Compensation
2. Health Benefits
3. Stability
4. Work-Life Balance
5. Location
§ Compensation: A fair market wage or slightly above, depending on qualifications,
will help attract talent. Usually to attract the best talent an
organization wants to be in at least the upper 50%, or first quartile.
§ Health Benefits: In a day an age
where healthcare is up in the air. It is becoming more and more important for employees to know
that when, and if needed, they and their families will have access to health care provided at a affordable
rate. Most people
currently are not fond of the idea of having a job that does not have benefits,
especially if they are the sole provider for their family.
§ Stability: Potential employees love the idea of
knowing long term that their job is secure. One of the best senses of security that employees can have in their personal life and
professional life; is knowing that an organization possess long term stability
along with their specific job role. Further, this allows employees to better plan their
career success and growth with a company.
§ Work-Life Balance (Although I hate this
term, I am using it for simplicity sake. Check out the blog post from May 5,
2013 “Work-Life – What?!?!”): This is the area that has seen the largest growth, according to the
CEB. The new generation entering into the work force wants to find, and walk,
that fine line of having it all. This means having the great career with a multitude of opportunities
and the thriving personal life. This is
a group of people who when asked if they would like a $200 bonus or an extra
day off, 90% of the time take the extra day off. (Not going to lie, I know I would take
the extra day off)
§ Location: I am not going to lie to you; this
bullet point actually shocked me when I saw it. I thought in this globalized
world filled with technology that were we live and the location of one’s job is
not necessarily as large a attraction factor as it is. However, after someone
thought and dialogue with peers, it seems as though this bullet is more about
the actual physical location of an organization on a candidate’s list of ideal places to live and work. For example as a
possible job candidate there are two different organizations. Of these two
organizations one is located in San Francisco, California and the other is
located in Danville, Illinois… There is a strong chance that the candidate may
investigate more keenly the position in San Francisco.
But let’s be completely honest, no organization wants just any talent. I
do not go to career fairs looking for “mediocre” talent. Companies want the best talent and the best teams. Understanding the
Top 5 Attractors and communicating those effectively to your employees can help
an organization attract the best talent.
Attrition
Now you have to begin to wonder what is about an organization that makes
people want to leave a job, risking unemployment or venturing out into new
territories. (Although sometimes that attrition can be a good thing, because not everyone is a
cultural good fit or meant to be in that position.) The point in determining attrition
factors is the attempt to minimize the loss of truly good talent. It really stings when you lose an employee
that you have intentionally developed and have great hopes for in the future. That
employee takes their knowledge and experiences to another organization.
*Top 5: Attrition
1. Future Career Opportunity
2. Compensation
3. People Management
4. Work-Life Balance
5. Respect
§ Future Career Opportunity: As a leader you need to be sure that
you are making time to have this conversation with all of your employees. On
the other side of the coin, as an employee you need to be sure that you too,
are actively and consciously have a plan for career development. This dialogue must be honest and realistic.
§ Compensation: Many people leave their jobs, their
roles, and their organization because they either feel that they should be
compensated better or have an offer from another organization that compensates better. This new
idea of talent poaching will cause great talent to leave a
good organization, unless the prior and following attrition factors are adhered
too.
§ People Management: Employees do not
quit companies, they quit supervisors! So when you have bad management, bad “leaders” (I quote “leaders” because I believe
there is no such thing as a bad “leader.” If this is the case than they were not
a leader to begin), and bad supervisors you are going to inevitability have terrible
turnover. People are leaving because of that “respect” issue. They have
supervisors, bosses, ect. that may be great at managing but terrible at leading. Please keep in mind that there is a difference and
hire for those positions by qualification and good fit.
§ Work-Life Balance: This is a hard area to define,
because this is a very subjective area to try to fit. However, in
many cases when an employee leaves an organization it is because they feel that
there is no balance. Employees perceive that they may be penalized for attempting to have both a great
professional life and a great personal life. Now, this can be something that is
either employee or employer driven, because to be completely honest, people do
take advantage of rules that will allow them to spend more time at home. However, if someone is failing in
their personal life, they are not bringing their whole self to work, and will
not see success as a leader, superior, and/or employee. Keep it in mind…
§ Respect: This is the primary reason that
employees who are not organized under a union, petition to organize under a union.
Or employees feel the need to involve a third party in your business. Leadership needs to be leaders, not just managers. Please
invest time and money into your leadership and this will help with attrition
and overall engagement throughout the organization.
The Bottom Line (Figurative or Literally)
As an organization we should really be focusing on the blend of both
attraction and attrition we want to make sure we are attracting the right talent and retaining the best talent. This is where communication is
highly effective, because these Top 5 list are truly based on perceptions. For
example, I may think my compensation is great and market based for my job and
performance. However, my peer may have a lack of understanding regarding market
based wages and need more clarity to understanding that their compensation is
actually pretty good. If this communication is not pursued that employee will
have the perception that their compensation is terrible. This same notion can be said for all of the
Top 5 Reasons for Attraction and Attrition.
Ensuring that we are maintaining fair and market based compensation. Leaders having the open and honest
intentional career planning discussion with their employees; while employees
actively engaging in that discussion and draft a plan for their leaders for future
career opportunities. Passionately create a corporate culture
that is ethical and upholds the values of respect throughout the entire
organization. In this day in age with the economic recession just past and the employment
downturn still affecting many people, ensuring that we research and understand
the cycles of business and uphold a level of stability that will make
certain the livelihood of the organization. Finally for the mental well-being
and productivity of all our employees create a culture that accepts employees
that have vibrant careers and thriving personal lives, or a good work-life
balance.
Be a part of a team. Lead with integrity. Remain committed to your
core values.
Sincerely,
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