Motivation and Retention of Key Employees in an Uncertain Economy

Why do employees leave jobs? If you ask employers, they’ll probably tell you it’s the money. However, if you ask employees themselves, you’ll get a much different answer.

A recent Gallup poll did just that – asked employees what motivates them to stay in a job. It also measured the cost to employers of “disengaged” employees. According to the Gallup Management Journal, “actively disengaged” employees cost the U.S. economy between $292 billion and $355 billion a year. The survey estimates that 24.7 million American workers, or 19 percent, are actively disengaged.

Other research shows that the most common reasons employees name for leaving a job are:

• Lack of feedback from managers
• Bad managers
• Better job security
• More opportunity
• More responsibility

So what’s an employer to do when there simply isn’t any more money in the pot? How can you minimize the cost to your organization of unmotivated employees and turnover? First, don’t worry about the money too much. Yes, it’s important to have an equitable compensation package, especially as hiring picks up. But money actually falls pretty far down the list of factors that motivate and ultimately retain employees.

Providing Job Security in an Uncertain Economy
The Gallup survey highlighted that for both exempt and nonexempt employees, job security is of foremost concern. However, job security is changing in the current legal environment. The widespread adoption of clear at?will employment policies and fear of wrongful termination suits by employees have forced employers into a defensive position. An organization would take legal risks by promising job security to its employees.

Nonetheless, employees who feel that their company is doing well and is likely to thrive will have confidence in their chances of thriving along with the employer. It’s important to give employees this message from time to time.

Job Satisfaction – Individualize Your Efforts
Today’s workforce is diverse in many ways: gender, lifestyle, national origin, ethnicity, education, and age to name a few. Individuals within each group are motivated by different factors. When it comes to increasing your organization’s morale and motivation, one size does NOT fit all.

To begin to motivate employees, you must first get to know them. Sitting in your office and trying to motivate them by remote control just doesn’t work. To understand their motivational needs, you must get out onto the floor and try to discover their interests, aspirations, and pursuits. As you observe, talk, and listen to your employees, you will find that most are motivated by one or more of the following basic needs: security, acceptance, self?esteem, independence, and achievement. As you get to know your employees’ motivations, you’ll learn how to individualize your efforts to engender job satisfaction.

The Most Important Factor – Managers
As HR professionals, we’re no strangers to complaints about managers. The fact is, no matter how much “face time” HR gets with employees, it’s their direct supervisor that they interact with the most. It’s the direct supervisor who defines how employees think about their employer. It’s the direct supervisor who can make or break the employer/employee relationship.

Yes, managers are busy, but it’s imperative they understand that their number one duty is employee relations. Here are some things managers can do that will help build morale and motivation:

• Pay attention to body language. Does the manager’s demeanor send the message, “Don’t bother me, I’m having a bad day”? This unspoken message can cause employees to feel anxious and to hesitate before bringing the manager another “problem.”
• Don’t forget the Golden Rule. Many managers forget simple things like please, thank you, and good job.
• Make sure expectations are clear. Communicate early and often, and don’t forget to give employees the reasons why something is an objective.
• Offer praise and recognition on a regular basis.
• Provide feedback, even if it’s not so positive. Employees need to know as soon as possible after a project how they did.
• Make time to speak with employees. Ensure that they get the message “my door is open.”

Of course compensation is important. But it’s not the only (or even the most important) factor in motivating employees. Companies who have a handle on this basic truth will be able to compete more effectively and successfully.

Reprinted from Council’s HR Today newsletter. Click here for a free trial or to subscribe.

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