Need to know:
- If organisational aims align with employees' personal goals, they will be more motivated and committed to contributing to success.
- Employee share plans allow staff to invest in their organisation, both financially and in terms of engagement.
- Personal development plans can help demonstrate to employees how their work and skill set impacts business success.
Success is a mutually beneficial proposition between the employer and employee. If an organisation is to thrive, its employees must perform to the very best of their abilities; in turn, employees benefit in manifold ways from their employer’s success, such as increased job security and higher remuneration.
Although this is the theory upon which the world of employment is built, the day-to-day reality of the workplace means the virtuous circle of success is not always readily apparent, or is too slow to manifest itself to act as an effective motivator.
However, the more aligned employees feel to the overall goals of the organisation, the more engaged they are in their work.
Ian Bird, business development director at Secondsight, explains: “Having a stake in the organisation can be the difference between an employee simply turning up and doing their job [or] driving them to succeed, as they have a longer-term vested interest."
Aligning personal and corporate aims
Employees are, by their very nature, stakeholders in their organisation. Nevertheless, in many cases, if they are to truly engage with the organisation, emphasising or enhancing their investment through benefits can boost motivation significantly.
However, it is not just about reward. Full understanding of the organisation’s aims is crucial, according to Kathryn Kendall, chief people officer at Benefex. “It’s critical that employees understand both what the organisation is trying to do, and why it matters, to both themselves, and to others,” she says.
Employees also need to know how the outcome affects them, Kendall adds: “If the organisation achieves those goals, what does that mean for them personally, for the business, and for the wider community? If the end result aligns with their personal values and objectives, the chances of them being motivated to deliver increase exponentially.”
Communicating clearly
Communication, rather than monetary reward, is the foundation for engagement, argues Dave Sykes, director at financial consultancy CB Financial. "Bonuses are regularly used, but more important are regular reviews, constructive feedback and development plans," he explains. "Individuals tend to like to know that they have a purpose within the organisation, and this regular communication strategy can be extremely effective.
An effective communications strategy, therefore, should use a mix of methods in order to engage staff, Sykes continues. This can include written literature about benefits, a benefits portal and face-to-face communication.
Developing staff
Setting personal development plans for employees is important to show how individuals’ targets and achievements contribute to the success of the business, says Alan Smith, UK managing director at One4all Rewards.
“Through our own research [The 2018 workplace happiness report, published in January 2018], we found that 18% [of employees] would be happier at work if they received more opportunities for training and development that were linked into the [organisation's] success targets,” Smith explains.
Financial gains
Meanwhile, financial reward undoubtedly continues to have a crucial role to play in affirming an employee’s commitment to the business.
Smith says: “To ensure a workplace is not only enjoyable but motivates staff, it is essential to offer a competitive salary and create an effective benefits package that is tied in to the success of the organisation. Providing reward schemes with bonuses tied to [business] success was a number one influencer of workplace happiness for 38% [of employees] we surveyed.”
Employee share plans are another frequently used tool to increase employees’ investment, quite literally, in an organisation's future.
However, Jo Taylor, managing director at talent and organisational design consultancy Let's Talk Talent, observes that this approach often has limitations placed on it by employers. “Stock options, in my experience, have always been limited to a senior management team, which ends up being a mark for people to achieve career development, and not always a motivator," she says.
Taylor cites an initiative implemented at telecommunications organisation TalkTalk in 2013, where senior management awarded every employee 1,000 shares in the business. "This had such an effect on morale and moved the people and culture agenda to another level," she notes.
Stock options, however, can only be truly effective if paired with a communications approach, adds Benefex's Kendall. This should explain to employees what the share plan is, how it operates and what the timescales and possible monetary reward associated with it might be. Demonstrating the value of an employee share plan in this way can then have a knock-on effect on staff loyalty, Kendall suggests.
Employee share plans have numerous advantages, notes Gethin Nadin, director of employee wellbeing at Benefex. Not only do these types of schemes encourage long-term savings, but they also award staff with a large sum of money in one installment. “These large sums of money can have a significant effect on the lives of employees; they can remove debt, provide a safety net or get employees on the housing ladder," he explains.
Transparency
As well as communication, clear objectives and, of course, monetary incentives, transparency is a key requisite for an invested, engaged workforce in the modern workplace.
Taylor concludes: “Google introduced their Objectives and Key Results [OKR] approach a few years ago and made this open across the whole [organisation] so that anyone can see what people are working on. The lesson here for HR is that transparency is critical in enabling people to feel that they have a say in how the business is run and how they can personally impact it.”
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