Modern Approaches in Employee Motivation

Modern Approaches in Employee Motivation

- Cash matters in people’s lives, but it’s not all that matters -

As we have been discussing throughout, Saloni & Ramesh (2012) confronts that the strategy to prevail International competition is to acquire the ‘Competitive Advantage’ with the application of “Human Capital” which is value adding, unique and sapient. Though the strategy was clear, the execution needed to be more pragmatic. That’s how the concept of motivation started to restyle itself towards the adaptation to the age of Globalization.

It all started with the Hawthorne’s studies which drastically changed the view on the employees from just an input to the production, to the key asset of an organization which determines the sustainable competitive advantage to the success of any organization (Ioan, Larisa & George, 2013). Magnus & Rune (2006) describes that the Hawthorne effect is the initial study which revealed the relationship between performance and the social psychology of an individual beyond the economic notion which was researched and developed further by many authors. This social psychology brings in a diverse combination of Individual traits aligning with their age, gender, skills, knowledge, experience and cultural norms which has also evolved over the years.

We being in 2020, live in an Interesting, yet challenging and complex phase of work era, by working with five generations, side by side (Kathy, 2016). Though the traditionalists have almost declined, we still have 1% of workforce lively contributing while the other past traditionalist has influenced and left their footsteps as values and practices to guide the generations behind. As we look in to the distribution of other generations, Kathy (2016) remarks the projection of workforce which would comprise 22% of baby boomers, 20% of generation X, and a major contribution of millennial (Gen Y) covering 50% along with the 7% of the new comers who are named Generation Z by the year end of 2020. This multi-generational workforce brings in a culture comprised of multiple set of values, practices and combinations of traits which urges to a modern approach towards motivation, time to time.

The concept of modern approach to employee motivation brought in by Daniel pink, 2009 blew up in the entire business world due to its sincerity and feasibility. Marijana, Gorica & Zoran (2019) explains that Daniel analyzed the discrepancy between the practices of motivation taken in a workplace and the actual practices that really turned out. As a result the author found that the motivation tactic has evolved through three major versions from which started in histories with Motivation 1.0 which is the “Hunger & Thirst”. This was followed up with Motivation 2.0 which is the “Carrot and Stick” approach. Though the above methods drove motivation with the common medium of money, the author confronts that it only longs for a short period. Amit (2017) says that the generations before Millennial were able to be applied with such methods with the alignment of command and control. But a radical change was demanded from the workforce behavior which comprised approximately 50% of millennial's, who are more tech - savvy, open to challenges, and pragmatic but less loyal, compared to previous generations.

Dina (2019) points out the research held by Ashley V. Whillans, an assistant professor at Harvard Business School which revealed that 80% of the American employees who are working for reputed U.S companies which spends more than a fifth of their budget towards the salaries, has disclosed that they are not recognized or rewarded.  The author further emphasized that this is because “Cash matters in people’s lives, but it’s not all that matters”. Belly (2015) further guides in this point by stating that it is a costly mistake of management to assume “Money = Happy Employees”.

The current trend of business has unfold the openness, with the transparency and bench-marking of salary scales, enabling fair and competitive wage policies. Merge (2017) says that if such wage scheme is implemented with the average of the region, the pay cheque will no longer be the carrot in front of rabbits. Dina (2019) also explains that the monetary rewards are practically applicable towards quantitative performance, while boosting quantities; but an intrinsic approach is needed to imply quality, creativity and superiority to the modern jobs that works with the perceptual sense beyond numbers, as the phase of “Hiring people to Job” has faded with the rise of “Talent Acquisition”, headed by the war for talents.

This is where Daniel introduced newest version of Motivation 3.0 which is Autonomy, Mastery and Purpose (Marijana, Gorica & Zoran, 2019). Since the modern social psychological trend of current generation, shows a pattern of continuous learning, with freedom to make themselves and the environment better, valuable and creative enabling self-development along with deploying trust, while eliminating hard and fast rules to the path towards organizations ultimate vision. The author also firmly stated that these intrinsic drivers would motivate employees in longer term compared to the monetary rewards, as the employee expects something beyond, when his basic need is satisfied as wage (Marijana, Gorica & Zoran, 2019).  John (2020) supports this statement with Gallups review which evidenced 87% of the millennial's, highlighting the need of career growth and opportunities from their job as a paramount factor.

John (2020) and Amit (2017) lists out some of the most effective, creative and pragmatic modern approaches that can intrinsically motivate employees to increase organization’s performance.

·   Providing employees with healthy work challenges – Millennials would love to take up challenging work to develop and distinguish their potentials rather than repeating the homogeneous tasks.

·       Eliminating hard and fast rules by implying flexibility and freedom in working environment – Managers should encourage employees to get the job done with their own style eliminating the fact of fear, to bring in creativity, innovation and efficiency.

·        Creating a better work atmosphere – This really has a huge influence in employee psychology. An ergonomic infrastructure with inspirational sayings and personalized cabins make employees feel work as a part of their life, improving their performance while a typical workplace arrangement impacts the employee to perform on or below standards, with the control mindset.

·    Creating a better place to work with the combination of friendliness and fun – Such work environment provides happy employees who are supportive as a team, and will have the spirit of enjoying what they do, resulting an extraordinary performance.

·   Make recognitions public – This allows employees to sense the feel of achievement and happiness which will further keep them motivated to sustain such performance levels in order to prevail their self-esteem.

·    Conducting Industrial training and workshops - The employees look forward to continuous learning, to update and enhance their knowledge and skills. This enables employees to excel in skills, while pushing them out of their attainable zone to exceptional performance with satisfaction. 

·      Making time for employees with continuous feedbacks – It is proven that simple phrases such as “Thank you’, “I trust you”, “Well done” and a small appreciation tap from a manager has an extensive influence on the employee. Also employees feel that they are valued when the management individually communicates to them building a positive relationship. This creates the willingness to contribute to the organization while enabling the management to understand employees very well. Also the continuous feedbacks navigate excellent performances.

·         Lunch and coffee outings – This enables to build team spirit with positive relationship with one another enabling employees to work and contribute, creative and innovative.

These factors listed above, will definitely help management by influencing employees to perform better on a longer run. Dina (2019) also emphasizes that, this modern way of motivating intrinsically is a best strategy to the organization since it implies for long term, by having a connection with employee emotions deeply, while enabling the highly positive reflection of increased performance which is cost saving to the organization. The author explains saying, since the monetary rewards are of short term; Incentives and bonuses have to be provided time to time to motivate employees. Whereas intrinsic motivation can be provided anytime with no or low cost involved triggering improved productivity for comparatively longer term.

Our organization also focuses on the intrinsic motivation, being comprised of millennial workforce as a major percentage. We focus on the workplace structure which is restyled every six months to avoid boredom, and improve performance with comfort. Also our board room is designed quite different from a typical meeting room while resembling itself with our values portraying the success path we have been through along with interesting infrastructure to encourage creative and innovative thinking. Our team leader conducts our team meetings out of office, being one among us to evaluate our performances in a fair approach. Also we have a staff representing team of creative and supportive staff members collaborated from multiple departments formed as a result of filtering continues survey results conducted by our new CEO who came in 2018. We also conduct recognition acknowledgement on monthly basis and staff birthdays with a small evening tea party to give a break in between continuous working hours to ensure employee happiness and satisfaction. We believe that these modern trends of motivation has influenced and encouraged us to work towards the vision of our organization with positive team spirit and enthusiasm.

CONCLUSION

“If I had nine hours to chop down a tree, I’d spend the first six sharpening my axe” said Abraham Lincoln. Likewise Employee Motivation is a most looked upon strategy which needs a close concentration to the correct execution which enables the acquisition of sustainable competitive advantage through the application of motivated employees to ensure organizations success. We have been discussing throughout, on the content on what it is about, what are the relative theories applied, why is it important, how has it evolved and how can it contribute by generating motivated and engaged employees.

Therefore I hereby conclude my blog with the note, that the motivated employees are the key asset of any organization who is to be mold individually by the management in order to distinguish the organizations success from its competitors, with the extensive competitive advantage propelling to higher level of achievements.

“Your employees are your company’s real competitive advantage. They’re the ones making the magic happen-so long as their needs are being met “- Richard Brandson -

References

·         Amit, S. (2017) EMPLOYEE MOTIVATION: A STUDY ON MODERN WORKPLACE MOTIVATION.  International Journal OF Engineering Sciences &Management Research, 4(4), pp. 68 – 77.

·         Belly, O. (2015) The Effects of Motivation on Job Performance: A Case Study of KCBCoast Region. International Journal of Scientific and Research Publications, 5(9), pp. 1 – 13.

·         Dina, G. (2019) Forget cash. Here are better ways to motivate employees. Forbes India [Online].Available at: < https://www.forbesindia.com/article/harvard-business-school/forget-cash.-here-are-better-ways-to-motivate-employees/53579/1 >. [Accessed on 14^th May 2020].

·         Ioan, M. A., Larisa, D. and George, B. (2013) THE IMPORTANCE OF EMPLOYEE MOTIVATION TO INCREASE ORGANIZATIONAL PERFORMANCE. Annales Universitatis Apulensis Series Oeconomica, 15(2), pp. 685 – 691.

·         John, H. (2020) 5 Ways To Truly Motivate Your Team In 2020. Forbes [Online].Available at: < https://www.forbes.com/sites/johnhall/2020/01/31/5-ways-to-truly-motivate-your-team-in-2020/#2cbd877c6b41 >. [Accessed on 13^th May 2020].

·         Kathy, G. (2016) What Motivates Your Workers? It Depends on Their Generation. SHRM [Online].Available at: < https://www.shrm.org/resourcesandtools/hr-topics/behavioral-competencies/global-and-cultural-effectiveness/pages/what-motivates-your-workers-it-depends-on-their-generation.aspx>. [Accessed on 12^th May 2020].

·         Magnus, H. & Rune, W. (2006) Recontextualizing the Hawthorne effect. Scandinavian Journal of Management, 22(2), pp. 120 – 137.

·         Marijana, A.G., Gorica, J. and Zoran, J. (2019) Modern approaches to employee motivation. EKONOMIKA: SCIENTIFIC REVIEW ARTICLE, 65(2),pp.121 - 133.

·         Merge, G.S. (2017) Why money is not an employee motivator. The Globe and Mail [Online].Available at: < https://www.theglobeandmail.com/report-on-business/careers/leadership-lab/why-money-is-not-an-employee-motivator/article 33755286/ >. [Accessed on 11^th May 2020].

·         Saloni, P. & Ramesh, C.D. (2012) Achieving competitive Advantage through HR practices: A case study. Journal of Strategic Human Resource Management,1(2), pp.35 – 43.