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September 26, 2006

Astron Mythbusters
 


“I can make $10,000 a year more if I go to work for the company across the street.”

How many times have you heard a variation of that statement?

Employees do not always have the detailed understanding of compensation that we as Human Resources professionals do.  When confronted with such questions, how should we bust the myth that higher pay is always right around the corner?

  1. Compensation rates are driven by an organization’s compensation philosophy.  That philosophy is uniquely right for each individual organization.  While some organizations compete locally, others look to their industry for pay rates.  Still others use a combination of both.  What is your compensation philosophy?

 
  1. Compensation is one part of the total compensation equation.  Employees need to understand that their total package consists of base pay, benefits, the work environment, and all the intangibles that come from working at your organization.  Can you clearly delineate to employees the value of their entire compensation package?

 
  1. Experience is rewarded differently by different organizations.  Is your industry experience more important?  What about seniority and length of service?  Perhaps performance and not experience is what matters to your firm?

 
  1. Simply because pay data is on the web does not mean it is correct.  Using well known salary sources to determine your pay rates provides you with a defensible compensation system.  What data sources do you use for your annual market analyses?

Some people will always look to jump for the higher pay rate.  And in some cases, it may be worth it to let them jump.  Your organization needs great people to succeed.  Those people should be motivated by the total package your organization offers, not just one part of it.

 

How to Inspire Employees (Part One of a Two Part Series on Employee Motivation)

 


There is currently a shortage of good workers in the job market. If you currently employ these rare people in your organization, it is much less costly to inspire those workers and retain them, than to recruit new ones. But an effort to inspire employees can be a tightrope between motivating and patronizing. A good plan can make your company much more efficient and cost-effective, and a better place to work. In the first of this two part series on employee motivation, we look at 10 ways to inspire employees.

1.       It’s the same advice that one would give a guy going out on a blind date: listen, listen, listen. Who knows your company better than those who work there every single day? Take their suggestions and problems and actually put them into use.

The American Printer wrote about Kohler and Sons in St. Louis. The company was trying to catch more mistakes and get more suggestions for employees. They decided to reward the suggestions and the mistakes with raffle tickets. At the end of each month, names are randomly drawn from all the raffle tickets. Three employees are awarded movie passes to a local theatre. One suggestion is selected as the Idea of the Month, and that employee receives a gift certificate to a local restaurant. One idea is chosen as the Idea of the Year and the lucky winner is given the choice of a weekend trip to a Marriott Resort or a television.

"The results have been impressive," reports Kevin Kohler, president. "We generated more than 100 ideas last year, the most significant in the prep area. One idea that related to file integrity saved us approximately $60,000. This year, we're renegotiating with our trash company based on an employee suggestion, and we're also saving about $1,000 by buying cheaper ball point pens."

2.       If you’re getting better benefits from your credit card than your employer, there’s a little bit of a problem. There are many creative ways to give incentive to employees besides plain vanilla bonuses. Childcare, healthcare, flexible work schedules, and flexible vacation times can help to make workers more inspired and productive, by taking their minds and time away from other problems. Other types of benefits could be in free gourmet food options (such as that offered by Google) or free healthy snacks offered all day long (such as that offered by Bloomberg). Workout options in the building (such as those at Reebok’s headquarters which has an Olympic-sized swimming pool, track, and gym) or paid for by employers can lead to not only happier employees but also keeps employees healthier and in the office more.  Opportunities to workout create endorphins, which make employees happier.

3.       On the theme of benefits for employees, special employee participation events and other company sponsored benefits can help promote the company and keep employees motivated. For example, some companies have concerts or picnics. The National Football League (NFL) has a day every summer where it takes its employees to Giants Stadium and allow them to play on the field and participate in other events. Amusement parks are another popular place to bring employees. A lot of these events also involve the families of employees. Other companies provide company merchandise for employees to not only promote the company, but also to give as prizes for well-performing employees.

4.       Speaking of rewards based on performance, as seen above, rewards programs don’t always have to be cash-based. SCORE! Educational Centers offer gift certificates for employees who win monthly contests. Some companies give out movie passes. If the company is in retail or certain services, it can offer large discounts on their products and services.

Creativity can be used even if the rewards are cash-based. Some companies have systems where you can either take $100 now, or wait for $500 or other benefits later. This allows for flexibility if someone wants instant rewards or can wait to see a greater benefit.  

This reward system is part of People Performance Management, which the New York Times called “a business philosophy based on the notion that motivated, happy employees significantly boost profits…It's a tactic that the likes of Dell, Southwest Airlines and Starbucks have used to obvious success.”

Here's one example: Employees who have been with CDW, the computer products retailer, for more than three years ''get a paid trip for them and their families to any place in the U.S. when the company hits aggressive annual sales or profit targets.'”

5.       Another reward can be public or private recognition. Stew Leonard’s grocery store allows for shoppers to recognize employees that have gone the extra distance. Those comments from customers are posted on a bulletin board.  The person who received the most positive comments in a month gets a gift certificate and public recognition (as in “employee of the month,” but with more of a reward element to it).

The American Printer also wrote about the C.J. Krehbiel Company in Cincinnati. When employees find a better way to do something or come up with a suggestion that saves the company money, they are recognized in the company's quarterly newsletter, Press Check. The publication is circulated to the company's 225 employees as well as to clients and suppliers. A brief write-up explains the employee's idea and how it will benefit the company. A photograph of the employee is included as well. "We think it's important to get the word out when our employees make a contribution. It builds morale and it's something they can share with their families," explains Rick Hastings, vice president of marketing and sales.

6.       Get everyone on the same page. This sounds a lot simpler than it really is, but it’s vital for your company and your employees. If the goals of the employee and employer aren’t in sync, it could create not only a lack of productivity, but also a lack of inspiration for employees to do their jobs. Industry Week reported that:

* 40% of workers feel disconnected from their employers.

* Two out of every three workers do not identify with or feel motivated to drive their employer's business objectives.

* 25% of employees are just "showing up to collect a paycheck."

A bonus commission rate can help to eliminate this, as could stock option plans, which pin the earnings of the employee on the success of the company.  

Mission statements were made infamous by Tom Cruise’s character in Jerry Maguire (the reason he was fired at the beginning of the movie), but PROFIT magazine thinks that they may be a good solution: “Done right, a mission statement will guide and inspire your staff, help you decide how to allocate scarce resources and create shared values to turn your company into a competitive force. Unfortunately, too many firms do it wrong.”

7.       Sometimes the way to get people on the same page is to promote personal objectives and allow people to lead. Research conducted by Astron Solutions on over 7,600 confidential exit interviews, showed that 14.2% of respondents listed their primary reason for leaving as a change of career objectives. What if an employee could change their career objectives within a company? If you could find a way to accommodate their personal objectives within the company, retention, motivation, and productivity should go up.

“It’s important for both HR and line management to spend time with employees, says Jennifer Loftus, National Director of Astron Solutions.  “You’ve got to enjoy some leisure time with them to find out what makes them tick.  During a shared lunch or coffee break, you may discover that your star employee wants to get more involved with Research and Development, Sales, or some other field outside the scope of their current position.  Use this information to your knowledge, and redesign the job.  You’ll help your organization to grow, save dollars associated with turnover costs, and make the employee feel recognized in the process.”

Some companies also use leadership conferences for all their employees to inspire them in their jobs, says the (Oklahoma City) Journal Record in reporting on the 1,100 business owners and managers who attended Express Personnel Service's annual international leadership conference.

8.       To gauge how well workers are performing or working to achieve their personal goals, employee reviews can be a helpful tool. Instead of only doing reviews every year, doing quarterly or bi-yearly reviews and attaching them to salary increases can greatly help employees know where you see them. It is especially helpful in judging an employee’s progress towards their personal goals. Difficult, but attainable, goals jointly set by the employee and Human Resources can allow for employees to strive toward a goal and be rewarded when they succeed. And instead of refusing a pay raise when they don’t meet the goals put out in front of them, giving them 60 days to improve their performance and be reviewed again can give more motivation for the employee to go the extra mile. Think of a make-up exam in high school--no one ever fails those because they want to prove they can do better.

9.       Another way to inspire employees to reach their personal goals is to provide them with opportunities for career development and advancement. Cross-training, generous tuition assistance, refresher classes, and in-office lectures can provide an opportunity for employees to meet or advance their career objectives. Mojave Copy & Printing (Victorsville, CA) owner Howard Kack said in the American Printer: "Our employees are my most important asset. I want them to know that if they are willing to invest their time to learn more about the business, then I'm willing to invest in them," Kack says. He regularly sends employees at all levels to seminars on team-building and communication skills. Following each seminar, the attendee must make a five-minute report at the next staff meeting. This allows not only for the employee to gain knowledge, but also for them to pass that knowledge along.

10.   Our top ten list starts with dating advice (remember “listen, listen, listen”) and ends with dating advice also: Be Spontaneous. The Systemic Solutions for Management website provides this advice: “Many employees leave their jobs because they feel bored. Learn ‘guerilla inspiration.’ Perhaps close the office for an hour one morning to watch funny videos. Perhaps announce occasional half day vacations. Perhaps arrange donuts and videos for employees on random afternoons. Guerilla inspiration helps convince employees to stay with you.”

If you create a great environment like that, it makes employees want to come to work, keeps them inspired in the work they do, and also helps promote going the extra mile. If you need more suggestions, contact Astron Solutions today, or wait for our next issue where we talk about management’s role – especially the CEO – in employee inspiration.

 



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Copyright 2007, Astron Solutions, LLC

ISSN Number 1549-0467