Working Smarter

The Best Retention Tool on the Planet

Posted by Joe Robinson

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Anyone who has ever waded through scads of resumes or interviewees to fill a position knows something most of us don’t: Talent doesn’t grow on trees. Finding the right skills combined with the right fit can be like staring at a fitting room mirror and wondering whether the new shirt or dress will work on you, or whether you’ll be back in a couple days to return something you have no idea why you bought.

There’s a lot on the line to get it right the first time, every time. Hiring the best talent is a painstaking art, and it’s expensive, replacing the most valuable people even more so. The costs run from recruiting and training to lost productivity while the position in unfilled. The tab to replace an employee earning under $50,000 is 20% of salary, reports a study by the Center for American Progress that examined 31 company case studies.

TURNOVER CONTAGION

It’s a bigger hit when it comes to hiring a new executive. The Center for American Progress found that it can run 213% of an executive’s salary to put someone new in a management chair.

High-turnover companies hemorrhage cash, but they rarely take into account the cost of the revolving door. Poor retention doesn't just hurt the bottom line, it also affects employee morale and commitment, as trusted colleagues leave. It can become a contagious, toxic cycle. 

The way out: Keep your people in the fold. Doing that isn’t rocket science. In fact, we have more knowledge than ever before about job satisfaction and how to keep employees happy—and better than that, engaged. 

First, there are companies that have already solved the retention issue, organizations whose employees love being there and seldom leave. The common thread at these firms is one consistent habit: Companies that take work-life balance seriously and walk the walk don’t have turnover problems.

SAS Institute, a $3 billion software company in Cary, North Carolina, has long topped the best places to work charts. Their turnover rate has ranged from 2% to 5% over the last four years in an industry that averages more than 16%. How do they do it? With exceptional work-life balance policies—37.5 hour workweeks, three-week vacations, on-site fully-paid daycare so you can have lunch with your kids, and on-site fitness center. You would have to have your noggin examined to leave a company like that.

WORK-LIFE FLEXIBILITY = INCREASED COMMITMENT

Policies that help employees take care of their responsibilities on both sides of the work-life ledger make people very loyal. It’s why study after study shows that flexible work programs increase satisfaction and engagement.

Researchers in several studies (Aryee, Luk, Stone; Halpern; and Houston, Waumsley) found that work schedule flexibility resulted in increased organizational commitment and reduced turnover intentions. Teleworkers are so happy with having some control over their schedules that they work longer than colleagues at the office and are 10% to 30% more productive (Pitt-Catsouphes, Marchetta, 1991). People who love their jobs do more willingly. That’s the definition of employee engagement.

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Modeling the behavior of companies that have great retention numbers can help improve loyalty, as can bringing work-life balance programs and practices to your organization, something we do here at Optimal Performance Strategies. The vast majority of management and staff have never received training in how to work in a way that aids work-life, and as a result operate in a retaliatory, reflex mode, which drives the opposite of engagement, stress and burnout.

Human nature is the same at every company. We feel appreciated and grateful when we feel valued. That’s what good work-life balance practices do. They tell employees the organization cares, and, as a result, so do employees.

ASK FOR NO PAYOFF, AND YOU GET ONE

Valuing employees brings us to the second strategy available to help keep talent on board—the science of human need gratification. It’s not widely known, but over the last couple of decades researchers have decoded the mystery of motivation. What makes people want to achieve? What makes them satisfied? If you know the answers to those questions, you're going to have happy employees. 

For a long time, it was thought that motivation was a simple carrot-and-stick affair. Offer an incentive, a bonus or promotion, and people would do what you want them to.

It turns out that, yes, people like money, but monetary and external rewards are not an engagement driver—because they are very ephemeral. The money wears off quickly, since we are all built with a been-there, done-that inner curmudgeon called habituation. We adapt to the new circumstance and get tired of it. The thrill is gone for a job promotion in two weeks, the research shows. Then you have to get another external boost to stay pumped up. Promoting people every two weeks would be great for business card printers, but not so much for the company.

There’s another kind of motivation, though, that lasts, and it’s one of the keys to employee gratification and effort: intrinsic motivation. You do something, not for an external gain but for an internal one—excellence, fun, learning, challenge, service, craft. When employees are intrinsically motivated, they are continuously interested in the work they are doing (Harackiewicz, Elliott).

UNLEASHING SELF-MOTIVATION

This is where human aspiration and company goals come together in work-life balance and engagement. As the University of Rochester’s Edward Deci and Richard Ryan have documented in their pioneering work, we all have three core psychological needs—autonomy, competence, and relatedness, or connection with others. We can only satisfy those needs if we have the right goal, an intrinsic goal.

Help employees satisfy those needs at work with an intrinsic approach, and you have staff more than satisfied; they feel gratified and aligned with aspirations at a core level. They won’t be going anywhere anytime soon.

This is something we help organizations do through our employee engagement programs. We show how to unleash the most potent motivation in your employees through the science of intrinsic motivation. We build the behaviors that make people feel valued, engaged, and competent—self-responsibility, initiative, shared decisions, perceived choice, and internalizing the meaning behind tasks.

We all have a job we have to do, but how we do it is where we can build in the flexibility that allows employees to gratify core needs like autonomy and competence. By tapping the needs of employees and communicating in a less controlling and more informational way, we can get employees to do what we want—because they want to do it.

Retention problems flourish when folks are too busy to do any managing or when the managing is based on the opposite of what motivates people. It all boils down to understanding what it is people really want, and the right way to communicate to them and empower them so that they are getting what they’re here for. And what’s that? Participation and involvement. They are not here to spectate.

Great work-life balance unlocks employee engagement, and great employee engagement opens the door to work-life policies that let people feel they can manage the full spectrum of their lives. That gratifies autonomy and competence in a big way, something that touches off satisfaction and its chemical victory dance by the brain’s party drug, dopamine. It's a sensation that makes them think it would be crazy to work anywhere else.

If you would like to find out more about our work-life balance and employee engagement trainings, click the button below for details.

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Tags: employee retention, employee turnover, employee engagement, job satisfaction, human resources

7 Surprising Ways to Boost Employee Morale and Engagement

Posted by Joe Robinson

Employee_Engagement

With only 29% of American employees engaged at work, it may be time to take a page from professional sports teams to boost morale. Hire a composer to write a company fight song. Deploy cheerleaders to the hallways and lunchroom. A bucket of chilled Gatorade over the head of someone who’s done especially good work might stimulate team spirit. Or might not. 

The sports world seems to know how important it is to keep the troops’ morale high, the business world less so. Aside from the rare thank-you note or gesture of appreciation, there isn’t a lot of thought put into building employee value, motivation, and commitment. If there is a focus, it’s on the wrong kind of motivation—carrot and stick, proven by a host of researchers, such as Edward Deci and Richard Ryan at the University of Rochester, to be demotivating.

The cost of the morale problem is huge, $300 billion in lost productivity every year, according to Gallup, not to mention the impact it has on retention, customer relations, innovation, and internal conflict. When engaged employees go the extra mile, they are 28% more productive, one of the many reasons employee engagement training programs, such as our program, "Supercharging Engagement," are so crucial. Studies show people can go from active disengagement to full engagement when you change how they think about their work.

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EXTERNAL IS EPHEMERAL

There are plenty of reasons for sagging morale—undelivered promises, lack of support, absentee managers—but the main reason is that few know where good morale comes from. Most of us have been operating in the dark when it comes to human motivation and need gratification, what it is that people need as opposed to want.

That’s not a surprise, since the culture tells us there is only one choice for motivation: the external kind—money, success, promotions, status, popularity. All of these intensely sought-after goals are based on the approval of others. They give us a quick bump in satisfaction before it vanishes like the last bite of cheesecake.

External motivation doesn’t last because it doesn’t validate us internally. It’s about what other people think, not you, and that’s very ephemeral. Opinions can change from moment to moment. You might get raves today, static tomorrow.

Research shows that the thrill of a job promotion, for instance, only lasts two weeks. Sorry about that. Then you return to however you felt before the promotion. We habituate to the new status, it becomes normal, and then we want more. It’s called hedonic adaptation. We are born to tire of even the best of fortunes and changed circumstances. Lottery winners revert to how they felt before they won the money (Diener).

What really drives humans is the self-propulsion engine driven by what is known as intrinsic motivation, acting for no outer payoff or pat on the back. The reward of intrinsic motivation is felt internally in the act of the experience itself. Deci, Ryan and a host of colleagues around the world have shown that intrinsic motivation is the most potent motivation and the one every manager and employer should want to stimulate.

ACTING FOR DEEPER GOALS

Why is intrinsic motivation so effective at increasing employee morale? Numerous studies in cultures across the globe have found the power of intrinsic values to increase self-esteem, well-being, positive mood, and vitality, all of which lead to more engagement.

Vitality is the key dimension of engagement: physical energy. Act for internal purposes and you get the best return of all, satisfaction, says Kennon Sheldon of the University of Missouri. He calls that dividend “self-concordence,” when we are acting for deeper goals or aspirations that are aligned with who we are. 

Intrinsic motivation is subtle, but it’s not completely out of our orbit. It’s the basic urge behind anything we do for fun, to learn, or challenge ourselves. When people operate from intrinsic goals—inherent interest, excellence, craft, challenge, learning, not for an outside payoff—they like what they’re doing more, remember it longer, and have full engagement in what they’re doing, research shows. One study found that “intrinsically motivated employees are continuously interested in the work that they’re doing” (Harackiewiez and Elliot).. 

What kind of difference could that make for your organization if everyone was absorbed in what they were doing? One of the most powerful elements of intrinsic motivation is its staying power. Studies show that if you are involved in anything that’s difficult or that requires persistence, intrinsic motivation is more effective in keeping you at it. Intrinsically motivated musicians and dieters who are in it for learning, the music itself, a healthier life and personal growth, not because others are forcing them to do it, stick with it.

CHANGING HOW WE THINK ABOUT WORK

Intrinsic motivation is powerful because it goes to the heart of human need satisfaction. What do we need? For most of human history, we haven’t had a clue, but over the last three decades researchers have found that when we act for goals that help us feel self-driven, competent, and connected to others, we feel gratified. People want to have a sense of choice in how they do their work, the opportunity to take on challenges that make them feel effective, and to collaborate with others for a larger purpose. 

Employees want to participate and contribute because they have to. It’s in the genes, part of a powerful self-initiative drive that will be left on the table if it isn’t coaxed out. How do you unlock this morale-booster? You can’t command employee engagement. You can only enable it by unleashing the employee’s own inner drive to excel, learn, and make a difference without regard to external payoff. It’s a process of changing how employees think about the work they do, and that requires a more collaborative approach. Here are a few tips on how to build morale through intrinsic engagement:

1. Increase choice in how people do their jobs. Choice makes people feel more autonomous and effective, which boosts satisfaction and commitment. We all have a job we have to do. How we do it, though, leaves room for adjustments. Let employees suggest ideas for improving bottlenecks, information overload, and task processes. Delegate decisions, not just minor ones.

2. Meet staff regularly. Employees with the worst engagement have managers with no time for them. On the other hand, 87% of those with the best engagement know their managers well (Blessing White).

3. Encourage innovation, input, and other viewpoints. Allowing employees to generate new ideas, even setting aside time to work on extra projects of interest (as Google employees do), and open communication let people feel they are contributing and are a valued part of the team.

4. Promote meaning. Why is your staff doing what they’re doing? Who is the customer and what’s the value that employees are providing? Detail the vision behind the work, the larger purpose, and build a noncynical climate. 

5. Find ways to keep people learning and growing. Development programs are a key lever of employee engagement and morale. Give staff time to learn new things and improve knowledge through employee trainings, and they can feel something at the top of the job satisfaction charts—progress. We are programmed to learn.

6. Offer positive and informational feedback. Pressure and threats make people resist, which isn’t conducive to extra effort. Language that reflects options and offers positive feedback helps employees feel self-responsible. Offer rewards as appreciation, not incentives. Acknowledge skills, which is a big nod to the person’s competence need—I like the way you did this/solved this.

7. Encourage staff to set challenging goals and the latitude to accomplish them. The more you can harness self-initiative, the more you increase the sense of value employees feel, which is great for morale.

Building employee morale is about allowing staff to feel enfranchised and involved in the pursuit of goals that tap into the intrinsic engine within us all that wants to do better, dig deeper. Harness it, and your employees get an internal bucket of Gatorade to celebrate progress and success. 

If you would like to unleash the engagement on your team with an employee training, click the button below for details:

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Tags: employee engagement programs, employee productivity, employee development programs, increase productivity, employee engagement, work life balance programs, job satisfaction, employee morale, increase employee morale, improve employee morale, intrinsic motivation, employee motivation

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