Performance vs. Motivation

Performance appraisals may send messages of mistrust and suppress the human spirit. Instead of depending on the motivation of inspired people, they can reduce employees to quantitative numbers, de-motivating them. Their best efforts cannot be turned on and off like a machine!

While performance appraisals may be used to weed out the bad, they can actually hurt the organization. More than a dozen leading business authors, academics and consultants have condemned and discouraged the use of performance appraisals, including Peter Block, Philip Crosby, Steven Covey, and the late W. Edwards Deming. Covey calls performance reviews by management today as bloodletting. Instead, he urges managers to develop win-win agreements with their employees about performance issues. An unintended result of that suggestion is that some employers do use his proposal of the performance model, but not fully, preparing documentation on an employee’s personal traits, rather than encouraging performance on a personal level with the development of win-win agreements based on trust and communication with management.

Deming encourages all leaders to use spontaneous and unplanned and unhurried three-to four-hour conversations with all employees at least once a year, with the primary goal of listening. These talks would not take the form of criticism, or performance feedback, but emphasis would be on a broader view of the work and to help clarify understanding of what employees need to perform their duties at a high level and to communicate how an employee’s efforts impact the company’s goals.

Alternatives to performance appraisals include these ideas:

1. Give an employee choice in accepting obligation and responsibility so work remains meaningful and effective.

2. Less structure and control over the individual employees often leads to increased motivation and productivity. Employees cannot be motivated to achieve their best results, but the conditions of openness and trust is the intrinsic motivation that unleashes the mind and heart-felt commitment to the objectives of the organization.

3. Concentrating resources in those areas most impacting workforce engagement, organizations will continue to see the return on investment through decreased employee turnover, improved productivity, and increased customer loyalty & retention.

4. Companies can survive and grow only if they are free to develop systems where variation, differentiation and diversity are valued as ways to innovate and improve.

Still Unconvinced About the Power of Employee Engagement? Look at the Data

A recent study of more than 300 organizations by the Aberdeen Group, titled, Beyond Satisfaction: Engaging Employees to Retain Customers, speaks volumes about the power of employee engagement.

Organizations who practice employee engagement report the following results:

• 22% year-over-year improvement in customer satisfaction/loyalty
• 21% year-over-year improvement in turnover/retention

In addition, the study reveals that eight in ten of these top companies attribute changes in profitability and/or revenue DIRECTLY to employee engagement initiatives. According to the Aberdeen Group, it’s never been more obvious that employee engagement is a necessary element in any organization.

“Top companies are moving beyond employee satisfaction — a one-way street which only measures if the employees needs are being met by the organization — to employee engagement, which is all about aligning individual, organizational and customer needs,” comments Mollie Lombardi, research analyst, Aberdeen. “It is no wonder that companies who provide their leaders with tools and training to engage their employees are achieving impressive business impact.”

If you haven’t been taking employee engagement seriously in your strategic implementation, why not? Instead of trying to keep employees happy or just keep them around- organizations must actively engage employees in creating their future and their usefulness within the organization- especially in a time when no one can afford the costly loss of employees.

Drivers of Motivation

These drivers influence the discretionary effort given by employees. The choice to give this extra effort comes from within. When these factors are present, employees choose to give more than just that which is required to get by:

• Job fit with personal strengths
• Accountability
• Knowing contributions are valued
• Alignment with personal goals and mission
• Strong leadership
• Stimulating work environment/team

The current economic situation can have both a positive and negative impact on motivation. The pessimist will see these difficulties as de-motivators. However, the optimist knows that difficult times can serve to unite the troops in a common effort and goal. There will be opportunities to challenge employees to stretch and grow in their positions. Here it is important to ensure employees are in the right positions and have strong leadership.

A Reward System Motivates Employees

Employee incentive programs are designed to reward employees that have excelled in their work. A reward system motivates employees to meet and exceed standards and improves overall performance of the company. The types of programs and rewards vary but the concept is the same for all incentive programs. The program is about recognizing the achievements and input of outstanding employees.

Human resources are integral to the success of any business or company. It is therefore essential in a highly competitive market to create a working environment that recognizes and rewards the contribution of employees. Third party employee recognition/reward programs help increase employee performance and in doing so increase the overall productivity of the company.

Apart from monetary remuneration it is important for employees to feel their work towards company goals is appreciated. Employee incentive programs are an opportunity for employers to boost company morale and to highlight the important contributions made by their employees. Employee recognition and reward programs motivate employees because they show a kind of specific appreciation that cannot be achieved with a paycheck. Employees who feel their work is really appreciated and their contributions are recognized are more motivated to achieve results.

Two way street: Recognition and Employee Engagement

I believe that authentic recognition is a vital behavior to promote employee engagement. For employee engagement to work I believe employers and employees must recognize things in each other.

1. What do employers need to recognize in their employees?
* Employers need to appreciate people for who they are
* Employers need to recognize people for what they do
* Employers need to build relationships

2. What do employees need to recognize in their employers?
* Show appreciation for their work
* Tell their managers what they appreciate and what they don't
* Recognize the value in the relationship and express it

Recognition Reigns Supreme

Personal recognition for doing a first-class job is important for employees, at times more important than dollars. Companies who don't appreciate the significance of employee recognition for their work contributions will continue to have turnover among their staffs. Those businesses who give some variety of award for superior jobs are able to maintain their employees and have better morale, according to studies done on this subject.

Employees are what makes a corporation, and by means of motivational awards to reward good performance is one technique to help your company be successful. Veteran workers are key to a thriving business as they know the consumers and strategy. They are helpful for many aspects of the business, they can train others and are recognized by your clients and other associates.

Your employees are the key to providing your customers with solidity and familiarity, and these relationships are vital to sustaining their business. Giving out motivational awards to your star employees helps maintain their loyalty consequently their longevity in the business which in turn helps sustain your client base.

How do you engage with, retain and motivate employees?

To give their best every day, employees need to feel they have a stake in the company’s success. Employee engagement results in part from understanding the company’s direction and the significance of an employee’s role in helping the company reach its goals.

Employee engagement is a key driver of organizational effectiveness and workforce performance. To fully engage and motivate you must identify the levels of engagement present within a given workforce population and set benchmarks by which you evaluate the level of engagement. Then you must analyze results to enable managers to understand and leverage the drivers of employee engagement unique to their organizations.

Finally, establish a systematic means by which accomplishments and achievements are noted, celebrated and recognized. In this way, you are reinforcing positive behaviors you wish to see duplicated. Success breeds success.

First, You Need a Foundation

An employee engagement program will not go far without first establishing the management infrastructure required to support its objectives. This means integrating your objectives into the overall business strategy, with clear vision, goals and metrics. It means having strong executive sponsorship and a collaborative structure for decision making and resource allocation. It requires a rewards and recognition program to support and reinforce objective behaviors. You will also need to put in place a project management structure to execute your strategy, and allow your initiatives to scale throughout the business. With such an infrastructure in place, you will be able to develop a strategy that fully engages employees, while fully realizing the benefits of their contributions.

Motivating

• Inspire/energize employees to commit to the strategy; show its benefits and the importance of their contributions.
• Solicit and address questions and concerns.
• Reward behaviors needed to support your objectives.
• Celebrate accomplishments.

The Bottom Line

Without fully engaging employees in your initiatives, you lose one of your most dynamic and powerful tools to build a culture of commitment, and potentially a competitive edge.

Motivation on a Budget

Many businesses find they aren’t just struggling with lagging revenue during the persistent recession. They also are forced to combat sagging employee morale. Here are some tips on how to keep spirits, and productivity, high.

• Communicate clearly. Be accessible, address concerns with openness and transparency, recognize effort frequently and offer appropriate, small rewards.
• Show employees respect and their value to the company. Find simple, cost-effective ways to acknowledge that they’re doing more with less, such as with an in-person thank-you.
• Build career paths. Employees understand that raises, bonuses and training might not be in the picture this year, but nurture growth in other ways, such as with new assignments or projects to let them shine.
• Remember recognition goes a long way. In the wake of Wall Street bonus scandals, incentive-based compensation is drawing more scrutiny, and moreover, hefty bonuses are not considered politically correct.
• Recognize everyone — not just top performers. Recognizing employees equally shows that “Everyone is in it together.”