Motivating Employees, December 2012

Learning Workshop: All About People

Motivating Employees
Research Questions
The businesses who attended the All About People learning group requested some
research on motivating teams and staff. This short research bulletin addresses
these issues, focusing in particular on the following research objectives:
Examine what motivates employees in the work place.
Explore how employers can get the best out of their employees through
motivation techniques.
Explore how employers can get the most out of new staff members.
Background
Motivation can be seen as the the inner force that drives individuals to accomplish
personal and organisational goals (Williams, 2010). Having a highly motivated team
of employees can be critical to the success of a business. Companies which
succeed in leading and motivating their staff will not only experience higher levels of
staff retention, but also increased profits, productivity and innovation (Business Link,
2010). Staff motivation is if anything even more important in small businesses where
cost issues mean that employers need their staff to devote a full measure of effort
to their jobs (Scanlan, 1973)
The research
Key motivations
The literature suggests that there are a range of factors which motivate employee
performance, stretching from economic incentives (such as pay and conditions) to
the type of work provided and the culture of the organisation. Some commentators
also make a distinction between factors which positively motivate employees and
those which prevent de-motivation and de-moralisation.
Stimulating and challenging work

Traditionally the human resources literature tended to focus on carrot and stick
initiatives to motivate employees, such as salary levels, and other external factors.
However Herzberg discovered that while such factors as poor pay, unnecessary
regulation and uncomfortable working conditions may explain de-motivation, their
absence does not necessarily make people work harder or smarter (Williams, 2010).
Instead motivation comes from internal factors, such as interesting and challenging


Motivating Employees, December 2012





work and increased responsibility (Williams, 2010). This is particularly significant for
SMEs which may struggle to address all of the factors behind de-motivation.

A number of commentators suggest that employees will be more motivated if they
are provided with stimulating and challenging work. Wallis (2012) argues for the
importance of providing employees with opportunities and challenges which will
allow them to demonstrate their value. Similarly Business Link (2010) suggested
that employees will be more motivated with varied and interesting work.

Rewards

In contrast to the above, Imberman (2012) argues that the economic crisis has
meant employees now see basic financial rewards such as salary, and particularly
job security, as much more important, compared to non-economic motivations,
including employee engagement.

In addition to large-scale incentives like a competitive salary, small small-scale
rewards like employee of the month have also been mentioned by some
commentators (Crimson Business, 2009). However, according to Imberman (2012)
while the absence of such initiatives as preferred parking places, service awards and
Christmas parties may demotivate and demoralise staff, they offer little positive
motivation in themselves, when compared to pay and conditions.

Work culture

Several commentators argue that employee motivation is influenced by the culture of
the business. Remillard (2012) argues that employees respond well to a
performance based culture, while others point to the need for flexibility, a good work-
life balance, and the provision of social events (Crimson Business Ltd, 2009). Sadri
(2011) suggests that the work-life balance is much more important to employees
than it was ten, or even five, years ago.

Goals and feedback

Many commentators suggest that employees respond well to formal procedures for
assessing and reviewing performance. The presence of a set of specific and
measurable goals which are in line with the needs of the business as whole are seen
as an important driver of employee motivation, as is setting the time aside to give
thorough feedback (Remillard, 2012; Bank of Scotland, n.d.).




Motivating Employees, December 2012





Engagement and involvement

Best practice human resources literature argues that employee engagement
practices deliver high returns in terms of motivation (Rehman, 2012). The Bank of
Scotland (n.d.) highlight the importance of involving employees in the business by:
keeping people informed about how the business is doing; discussing major changes
and decisions before they happen and as part of that decision-making process; and
the provision of training opportunities, including encouraging employees to ask for
training when they need it.

A framework for motivating employees

It should be noted that listening to what employees themselves are saying is an
essential step towards developing successful motivation techniques (Feuer, 2011).
Furthermore while managers may feel they are effectively delegating responsibility to
their employees, the employees themselves may have a very different perception of
their involvement in the organisation (Scanlon, 1973). However the literature does
provide an important framework for developing specific motivation initiatives.

Nohria et al (2008) developed a new model of employee motivation which
incorporates many of the factors listed above and sets out a number of actions which
employers can undertake. As well as the desire to acquire (which relates to
economic rewards and status) and the desire to comprehend (which involves
having meaningful work), Nohria et all also identify a desire to bond, where
employees feel proud of belonging to an organisation, as well as a desire to defend
which involves their concern around change (particularly any form of restructuring).
Importantly all four of the drivers are considered to be equally critical to motivation
(Nohria et al, 2008). For example, you cannot just pay your employees a high salary
and hope theyll feel enthusiastic about their work if bonding is not fostered and work
seems meaningless (Nohria et al, 2008).




Motivating Employees, December 2012





Drivers, levers and actions necessary for employee motivation:

Drive Primary Lever Actions
Acquire

Reward System Sharply differentiate good
performers from average
performers
Tie rewards clearly to
performance
Pay as well as your competitors

Bond

Culture Foster mutual reliance and
friendship among co-workers
Value collaboration and
teamwork
Encourage sharing of best
practices

Comprehend

Job Design Design jobs that have distinct and
important roles in the
organisation
Design jobs that are meaningful
and foster a sense of contribution
to the organisation

Defend Performance-
Management and
Resource-Allocation
Processes
Increase the transparency of all
processes
Emphasise their fairness
Build trust, being just and
transparent in granting rewards,
assignments, and other forms of
recognition

(Nohria, Groysberg & Lee, 2008)

Motivating new employees
Ensuring that the work itself is interesting and challenging is particularly important
when it comes to motivating new employees, where economic incentives (once they
have been hired) may not be initially so relevant. It is particularly important to make
sure any new employees are motivated from week one. While the literature on
motivating new employees specifically is more limited, Kelsey (2012) outlines 10 top
tips, which also provide a set of practical steps for making sure employees are given
stimulating and challenging work:



Motivating Employees, December 2012





















Conclusion
The research outlines some of the key factors behind employee motivation and de-
motivation and sets out some techniques which employers may want to consider
introducing to motivate their staff. While some of the literature does focus on
financial incentives, other commentators feel that the type of work provided and the
level of responsibility required are critical drivers for employee motivation, particularly
where new staff members are concerned. Consequently while small and medium
sized businesses (SMEs) should not ignore financial incentives, they could look to
maximise the non-economic motivations of employees, given the difficult financial
environment.

10 Tips for motivating new employees:
1) Paint a broad picture. Tell new recruits how what they do fits into the wider world.
2) Delegate meaningfully. Give them work tasks which present a meaningful
challenge, something which is important, from the start.
3) Practice one-minute management. Try to make work instructions brief and
beware of micro-management.
4) Be on hand but not domineering. If the new recruit gets stuck dont say thats fine
leave it to me, but offer them guidance on what direction to head in.
5) Insist on a complete project even first time. State the end result required and
expect a version of that result, not a half version. Even if they need to start again it is
better that they learn how to do this themselves for future reference.
6) Go through the whole project with them. Once they have handed over a complete
first project its important to go through it with them, providing both positive and
negative feedback where relevant.
7) If poor make them start again. Dont ever say thanks but itll take me 20 minutes to
do it myself as the employee will become increasingly convinced that theyre not up
to it.
8) Tutor them in the ways of the office (e.g. dress policy or time-keeping). It is
important that new team members feel part of the team as soon as possible and
offering guidance on the culture of the company is vital in this respect.
9) Get them in front of the client. It is important to make them feel involved in the A-Z
of the process as soon as possible and this usually involves getting them in front of
clients.
10) Listen to them. New employees, particularly if they are graduates, may have new
ideas about how the company can win work. It is important to listen to them even if
you decide not to act.
(Kelsey, 2012)


Motivating Employees, December 2012





Annex Business Case







Case study: PJ Locums

PJ Locums is a privately owned recruitment agency placing healthcare personnel
from overseas in the health and social care sectors. Developing and applying
leadership skills has transformed the business.

The company restructured the team in order delegate tasks and plan ahead, and
found it important to develop strategic measures and systems that staff can follow.

The company introduced:
- Weekly company meetings, staff surveys, team-building events, away-days to
gain feedback
- Training, appraisals and career progression
- Money: bonuses, a new commission system to encourage staff to exceed
targets
- Involve staff in decision making, create a collaborative working environment
- Company culture based on: trust, teamwork, communication and shared
goals

Results: In 18 months, growth accelerated dramatically, with turnover up from
1.25 million to 3.6 million.

Lessons learned:
- "When you're leading and motivating staff to achieve business goals, you can
lose sight of a life outside work. We had to force ourselves to ditch the 'work
all hours' mentality."

(Business Link, 2010)


Motivating Employees, December 2012





References:
Bank of Scotland (n.d.) Motivating and Retaining Key Staff. Available at:
http://www.bankofscotlandbusiness.co.uk/pdf/motivating-staff.pdf (Accessed: 17th December)

Business Link (2010) Lead and motivate your staff. [Online]. Available at:
http://webarchive.nationalarchives.gov.uk/20120823131012/http://www.businesslink.gov.uk/
bdotg/action/detail?type=RESOURCES&itemId=1077340434 (Accessed: 3rd December).
Crimson Business Ltd (2009) Keeping staff motivated. Growing Business [Online]. Available
at: http://www.growingbusiness.co.uk/keeping-staff-motivated.html (Accessed: 17th
December)
Feuer (2011) How best to motivate your team: Smart Business Chicago, 8 (9) p.30 [Online].
Available at: http://connection.ebscohost.com/c/articles/62654284/how-best-motivate-your-
team
Imberman, I. (2012) Motivating Employees: What Works? What Doesnt Work?. Foundry
Management and Technology [Online]. Available at:
http://foundrymag.com/feature/motivating-employees-what-works-what-doesn-t-work
(Accessed: 17
th
December)

Nohria, N., Groysberg, B. & Lee, L.-E. (2008) Employee Motivation: A Powerful New Model.
Harvard Business Review, 86 (7/8). pp 78-84. Available at: http://hbr.org/product/employee-
motivation-a-powerful-new-model/an/R0807G-PDF-ENG (Accessed: 17th December)

Rehman, S. (2012) A Study of Public Sector Organisations with Respect to Recruitment, Job
Satisfaction and Retention. Global Business and Management Research: An International
Journal 4 (1) pp. 76-89. Available from SERIO on request.

Remillard, B. Motivating Top Talent in De-Motivating Times. Ceramic Industry August 2013
[Online]. Available at: http://web.ebscohost.com/ehost/detail?vid=3&hid=25&sid=aa0a8aff-
0c40-4ad0-a162-
e8cd6e211d17%40sessionmgr14&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&A
N=78403295 (Accessed: 17
th
December)
Sadri, (2011) Meeting employee requirements: Maslow's hierarchy of needs is still a reliable
guide to motivating staff, Industrial Engineer [Online]. Available at:
http://connection.ebscohost.com/c/articles/66247063/meeting-employeee-requirements-
maslows-hierarchy-needs-still-reliable-guide-motivating-staff (Accessed: 17th December)

Scanlon, K.B. (1973) Motivating Employers in the Small Business. Journal of Small Business
Management. 11 (3), pp.1-6.

Wallis, A. (2012) How to Reward Your Top Sales Professionals. Aaron Wallis Recruitment
and Training Ltd. Available at: http://www.aaronwallis.co.uk/how-to-reward-top-sales-
staff.aspx (Accessed: 22nd November).

Williams, R.B. (2010) How to motivate employees: What managers need to know.
Psychology Today [Online]. Available at: http://www.psychologytoday.com/blog/wired-
success/201002/how-motivate-employees-what-managers-need-know-0


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SERIO Research Team
Research and Innovation Adrian Dawson
Plymouth University Lorna Bell
Tamar Science Park Charles Dorr
9 Research Way Ciara McFerran
Derriford Helen Scales
Plymouth, PL6 8BT
T: 01752 588997
F: 01752 588987
E: upresearch@plymouth.ac.uk
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