Motivation supplement 2003: Update

Book staff’s themed rewards Employees at Penguin are not just motivated by a love of books. Instead, the company uses opportunities arising from its business activities to create a varied and innovative programme, in many instances bringing its titles to life. The programme operates on two main principles: matching benefits with the company’s culture and building on opportunities that its business presents for all employees. Many events are inspired by the launch of new titles. When a book on balancing work and life was launched, for example, the company held a work-life balance seminar for staff. A new Elvis title, meanwhile, inspired a Blue Hawaiian evening. Themed events are a key feature of the company, particularly in the restaurant at its head office building where themed meals and costumes often accompany book signings. Alongside its motivation scheme, the company operates a programme for celebrating success and rewarding staff for their achievements. As a thank you to employees involved in the production of a book on the Rolling Stones, they were invited to the official launch party. If this isn’t enough, all employees qualify for two free books a day and a generous discount on all Penguin titles.  Rewarding in a tough climate Holidays remain a key feature of motivation and recognition schemes as organisations report strong profits and sales figures in a tough economic climate. Record profits prompted furniture retailer Durham Pine to offer staff a week’s holiday in Majorca to thank them for their work. Over 100 employees along with 173 partners, children and friends will take the trip in August and September. The week will not count as part of their annual leave and all staff will receive full pay while they are away. Employment law firm Peninsula took a more traditional approach. The company used a trip to New York to motivate its sales and marketing staff by awarding it to the top 70 performers. Cost-conscious organisations could follow the example of pizza manufacturers, Schwan, which negotiated discounted holidays to Disneyland Paris for staff. The firm’s social club organised the trip to allow members to socialise with colleagues in a relaxed environment. In return, staff pay a small annual membership fee. Employees do not even need to leave home for holidays to be motivating. Volvo boosted its holiday entitlement to reward employees during the economic downturn. The company added an extra two days holiday in April after staff indicated that they valued this benefit. Questions to consider when designing a motivation scheme • Who are you trying to motivate and why? • What motivates them? • What do you hope motivation will achieve? • What performance measures will you use when setting targets? • How will you communicate your motivation scheme? • How will you get staff buy-in to the scheme? • How will the scheme fit in with existing benefits? Three top tips Michael Rose, director of reward and recognition at Aon, has three top tips for organisations designing a motivational scheme. These are: • Don’t set out to design the scheme thinking that it has to be implemented across the entire company. Start on a local level and roll it out gradually. • Begin with something relatively simple to encourage employees to appreciate each other. • Don’t just think in terms of reward, but try to link recognition with training and development. Eight steps to motivation The Art of Motivation from Capital Incentives outlines an eight-step programme designed to motivate any employee. It recommends that employers: • Set goals that are achievable • Communicate effectively • Have lots of winners • Make frequent awards • Have a most improved award • Select an employee of the month • Present rewards with style • Encourage sustained effort Research Expensive rewards and incentives are not necessarily the most motivational tools Over three-quarters (82%) of employees are primarily motivated by being treated fairly and feeling valued at work. Recognising employees’ achievements can be highly motivating. Over a third (36%) of staff said that they are most motivated when they are made to feel important or involved with their organisation. Less than a quarter (23%) are motivated by a good benefits package. The number of organisations with a formal reward scheme, however, is rising. Just over half (52%) of employees now don’t have an incentive scheme in their current organisation compared with 64% in 2001. While vouchers are the most commonly used incentive, employees also place a great deal of value in team building activities. Around a third (31%) feel that they would be most motivated by company social events. A similar number (27%) would prefer an activity based away day. Over a third (36%) say that they look to Richard Branson as a motivational role model. Source: Capital Incentives Motivation Survey Motivation theories •Hierarchy of Needs by Abraham Maslow Motivation factors can be ranked in priority order. People typically worry primarily about survival needs, followed by safety, affection, esteem and self-fulfilment. Before they can move along the scale, people need to be motivated. •Factor Motivation Theory by Frederick Herzberg To motivate people, hygiene factors such as salary and working conditions need to be acceptable. Motivational factors include achievement, growth and recognition. •The Engaged Performance Model by the Hay Group For employees to be motivated six elements of engagement need to be satisfied: ~ Tangible reward – including pay, benefits and incentives. ~ Quality of work. ~ An enabling environment. ~ The opportunity for growth and development. ~ Work-life balance. ~ Inspiration/values – including whether staff subscribe to the organisation’s values. Further reading Recognising Performance by Michael Rose. Published by the Chartered Institute of Personnel and Development (CIPD). Cost ¬£13.99 (¬£12.59 for CIPD members). The Motivation Handbook by Sarah Hollyforde and Steve Whiddett. Published by the CIPD. Cost ¬£24.99 (¬£22.49 for CIPD members). Reward Strategies by Duncan Brown. Published by the CIPD. Cost ¬£26.99 (¬£24.29 for CIPD members). Total Reward. Published by the CIPD. Cost ¬£30 (¬£27 for CIPD members). 1001 Ways to Reward Employees by Bob Nelson. Published by Workman Publishing. Cost ¬£7.99 See also for further information.