Motivation and Compensation: It isn't all about money

     Everyone must put food on the table and find a way to squirrel out enough resources to keep Maslow happy with his famous five “hierarchy of needs” of physical (food), safety (get out of my cubicle), belongingness (include me in the information flow), esteem (I know what is going on around here) and lastly, self-actualization (I can lead the way.) We have discussed here previously Maslow and his description of these basic human requirements to get by, get along and get ahead, but what happens when you are just stuck trying to discern what is needed to motivate yourself or your team? Usually the answer is money. Show me the money, and I will show you the results. But, what happens when you don’t have the money for a pay raise or financial incentive, or worse, you have given that to your team, but they just can’t seem to get it done without your constantly micromanaging them?
     Enter the Law of Diminishing Returns, and the idea of a Break Even Point. The Law of Diminishing Returns tells us that there is a point where even with more effort or investment, results decline. The idea of a Break Even Point tells us that input (of money) equals output of effort up to a zero sum balance. That is to say, more money does not get you more effort past the psychological breakeven point. As I was asked in an interview once, “How much money do you need?” The hidden question is “How much money will make you lazy?” The point behind the question is “How do we motivate you when we can’t or won’t give you more money?” The correct answer is: It isn’t all about money.
     To that thought, here are some ideas to think about from an article I found in Inc. and offered up by entrepreneur Ilya Pozin. His company, Ciplex, made the Inc. 500/5000 list for 2011 of America’s fastest growing private businesses. Starting this company at age of 17, Ciplex is a digital marketing and creativity agency. Writing for Inc., Pozin’s article, 9 Things that motivate your employees more than Money, really caught my attention. When it comes to motivating yourself and your team, the answer may cost less than you think. Good stuff, so grab some coffee and think about this one for a minute. And there is no charge on this one either. 
According to Mr. Pozin:
     1. Be generous with praise. Everyone wants it and it’s one of the easiest things to give. Plus, praise from the Boss or leader goes a lot farther than you might think. Praise goes even further when you praise someone in front of others.
     2. Get rid of the managers. Love this one! Let people simply work as a team. There really are just some things that you cannot buy, and getting someone to come in early or stay late is an issue of motivation, not requirement. They may not do it for you, but they will do it for the group.
     3. Make your ideas theirs. It is all in the tone or turn of the phrase. “Do you think it’s a good idea if we do it this way?” is received much better than I need this done this way now. Remember, just because you say it harshly or loudly does not make it more accurate or necessary. (Unless of course the house is on fire.)
     4. Never criticize or correct. If you want adults, be adults. If you want children, treat people like children. Pozin suggests an indirect approach to get people to improve, learn from their mistakes, and fix them. Ask, “Was that the best way to approach the problem? Why not? Have any ideas on what you could have done differently?” Then you’re having a conversation and talking through solutions, not pointing a finger.
     5. Make everyone a leader. All you limelight huggers and glory hounds beware. You need to step away from the warmth of the spotlight and highlight your top performers’ strengths instead. Pozin suggests letting them know that because of their excellence, you want them to be the example for others.
     6. Take an employee to lunch once a week. Or just randomly do something nice for someone on your team. But, please don’t play favorites.
     7. Give recognition and small rewards. They don’t need to break the bank, but small tangible awards like dinner, trophies, spa services, and plaques are good places to start.
     8. Throw company parties. Remember when work use to be fun? Remind your staff that you’re all in it together.
     9. Share the rewards—and the pain. Be honest and transparent. Ask for opinions, and require a yes or no. You should not always agree for goodness sake. It is okay to have an original and intelligent thought that is different.

     If you never have any dissention, then you are not progressing as a team, and your entire effort is at peril if you lose the figurehead leader.

Thanks for taking a read this week, and I would look forward to your ideas as well.

You can't Lead Where you won't Go

Congratulations! You have just been promoted to manager in your organization, and even better, you are now the leader of everyone that you use to work with in your company. Wow! What a challenge!

But, how do you go from being peer-partner to partner-leader? Much of how this transition will play out will be driven by the kind of leader that you were BEFORE you were promoted. No matter where you are in an organization, you are in fact a leader. You may be the Consensus Builder, or you may be the Keeper of the Trust of the team. You may be the Quiet Leader that everyone feels comfortable around. You may be the Status Quo Breaker or the Question all the Logic kind of leader. You may be the “Why do we it that way?” kind of leader. At the end of the day, all are important to a team, but only one person can be the true out front, buck stops here leader when a promotion opportunity comes around. Company management does have a choice to go outside and avoid all of the political infighting that may come from promoting from within, but often you will see a true promotion up from the ranks as a highly motivating experience. In military terms, this “Field Grade Promotion” comes with recognition of leadership and character in adverse situations. Or it may mean that someone got a great offer, and just moved on, leaving a vacuum of leadership. Either way, what a great opportunity for the right person, so let’s take a moment to reflect on what it takes to navigate this challenging transition.

Keeping your team productive and hopeful during a new boss transition can be complex. Forging a workplace partnership is key to developing a loyal and engaged group. No pressure here, but trust in leadership is critical. According to a Gallup survey, people don’t just quit companies or leave because of compensation, they quit people. Getting on the employees bad side may be as simple as not asking for their opinions, not offering good feedback, or putting someone in a role that they are just not prepared to do and for which they are ill suited. People want fact-based praise and recognition for their work. And by the way, NOT scolding is not the same as offering lots of praise.

How do you keep employees from slowly disengaging and turning off? How do you keep them from becoming disillusioned and resigning inwardly? This does not happen immediately, but over the course of time during the routine work week. It is clearly important to keep motivation high.
The motivation level of employees has tangible economic ramifications for the company. In the group of engaged employees, there are lower rates of theft, fewer defective products, fewer work accidents, less employee turnover and lower levels of absenteeism. And those are only the direct costs. Motivated employees also work more productively, are more innovative and more responsive to customers. All these factors serve to increase the company's profitability. Highly engaged and motivated employees are also the ones with an elevated sense of emotional connection to their jobs. They feel valued and empowered.
Make no mistake, people like to work. According to a Gallup survey in Germany began in 2001, people were asked the following question, “If you were to inherit enough money to no longer need to work, would you continue with your job or would you quit?" As many as seven out of ten employees in Germany would not resign despite an inheritance that would provide them a financially carefree life. This indicates the fundamentally positive relationship between people and their work. Even two-thirds of those about to retire would continue working despite a large inheritance.
As you assume greater management responsibility, realize that these skills may not be that teachable. Just like social skills, and how we present our self as leaders, much is learned at the feet of our parents. Like it or not, we are taught how to treat others, and those early lessons may be a wonderful source to pull experience and insight. For others, they may be not so great to pull from in the work place. This is a primary driver behind the “Peter Principle” where a person is likely to be promoted to their highest level of inefficiency. In this respect, the best sales person can also be the worst manager. Selling skills and management skills are two distinct skills indeed.
Bottom-line, congratulations on your new responsibility. Keep your head up and your ethics higher. Seek out a mentor, and train yourself on the skills of leading others. Surround your self with a diverse and experienced team, praise them often, and get out of their way. Some of best leaders, both past and present, were only as good as the team that they were surrounded by in their office.