Keeping top talent is more important today than ever before. With workers resigning in droves as part of the fallout of the global COVID pandemic, organizations everywhere are feeling strapped.<\/p>\n
In addition to raising salaries and offering signing bonuses and stock options, leaders are looking for even more ways to attract talent and boost employee motivation in today\u2019s competitive labor market.<\/p>\n
With many workers now accustomed to working from home, some organizations are building on-site wine bars, covering commuting costs, or providing free lunch to encourage employees to come back into the workplace.<\/p>\n
It\u2019s almost as if we\u2019re in an \u201carms race\u201d of ever-escalating company perks, and it\u2019s not unheard of for businesses to go as far as paying for their employees\u2019 weddings or offering a monthly \u201cbeauty budget\u201d for manicures, pedicures, and haircuts.<\/p>\n
And such extrinsic rewards<\/em>\u00a0are clearly motivating for many people.<\/p>\n But as important as compensation and benefits are for motivating employees, we know they\u2019re not the only things that matter when it comes to keeping employees productive and engaged. <\/strong>These benefits are a part of a much larger motivation equation. Intrinsic rewards, such as psychological wellbeing, joy, learning, and personal fulfillment, matter too.<\/p>\n Many companies recognizing this are now embracing purposeful leadership<\/a>, making an intentional effort to help employees connect their personal values to organizational priorities and understand their individual contributions in terms of the impact of the business on society at large.<\/p>\n Plus, in today\u2019s era of employee activism, more workers are expecting their organizations to take a stance on hot-button social issues and are calling for greater organizational accountability on issues of equity, diversity, and inclusion<\/a> and other causes they care about. Silence on a subject can be a powerful statement in and of itself, so organizations should be mindful of how that can affect employee motivation and loyalty as well.<\/p>\n Many companies are also looking to improve employee retention post-pandemic with flexible work arrangements<\/a>, 4-day work weeks, or hybrid workplaces. Certainly, giving employees as much autonomy as possible in deciding when and where they work is helpful to increase employee motivation and engagement.<\/strong><\/p>\n Yet many organizations still <\/em>do not fully understand how best to motivate and engage employees.<\/p>\n First, understand the realities about employee engagement and motivation.<\/p>\n Lack of engagement isn\u2019t about lack of motivation.<\/strong> The difference between an engaged and disengaged person is not a lack of motivation, but the quality<\/em> of their motivation. The key to long-term engagement is the day-to-day shift to optimal motivation, when employees\u2019 work is aligned<\/em> (linked to a significant value), integrated<\/em> (linked to an important purpose or issue), or inherent<\/em> (naturally enjoyable, compelling, or interesting).<\/p>\n Relational engagement is as important as work engagement.<\/strong> A leader\u2019s investment in work relationships is a critical and unique aspect of employee engagement. A leader is engaged in multiple relationships at work \u2014 with peers, employees, stakeholders, and customers. Relational engagement is the degree to which a leader is energized, enthusiastic, and absorbed in working with others.<\/p>\n Career development boosts engagement.<\/strong> Studies have repeatedly shown that organizations with high employee engagement and motivation, with high satisfaction and retention rates, demonstrated consistently different talent management practices than those with low engagement. Talent development processes were key differentiators.<\/p>\n So what are the other important factors to consider when motivating employees? And what can employers do to boost employee engagement and motivation?<\/p>\n A team of our researchers looked at these questions.<\/p>\n Building on an established theory that people have different types of motivation at work, they looked at how motives work together to influence job attitudes that are important for employees\u2019 retention and performance. Our research has shown that managers who lack internal motivation are likely to have unfavorable job attitudes and may leave the organization.<\/p>\n Our research study<\/a> examined over 300 U.S. managers from numerous organizations, working at the middle, upper-middle, and executive levels. It measured levels of external motivation along with 3 types of internal motivation which, in combination, resulted in 6 \u201cmanagerial motivational profiles.\u201d The research team found that managers who lack internal motivation are likely to have unfavorable job attitudes and may leave the organization.<\/p>\n In contrast, managers who were the most satisfied with their jobs and committed to their organizations were either:<\/p>\n In both cases, managers needed internal motivation to unlock productivity.<\/strong><\/p>\n Researchers also found that externally driven motivation (powered by extrinsic rewards) wasn\u2019t necessarily damaging, but needed to be paired with internally driven motivation for the greatest success at engaging and motivating employees. Being simultaneously internally and<\/em> externally motivated is related to more positive outcomes than solely being externally driven.<\/p>\n That\u2019s why in today\u2019s competitive market, organizations can no longer afford to be uninspiring and soulless, even if they pay well.<\/p>\n High internal motivation is the key to unlocking employee engagement, satisfaction, commitment, and performance.<\/strong><\/p>\n If you\u2019re serious about fighting disengagement and building increased commitment to your organization, here are some tips to help you improve employee engagement and motivate employees:<\/p>\n If organizations want to develop and energize their employees, particularly their high potentials, they must recognize individual differences in managers\u2019 motives. Optimizing employee motivation is not as simple as implementing a one-size-fits-all incentive system. <\/strong>To truly optimize motivation, organizations must understand and address the wide range of motives that managers have for tackling their jobs.<\/p>\n Our research suggests that organizations can create environments that foster internal employee motivation in 3 primary ways: bosses, reward systems, and organizational politics.<\/p>\n Managers\u2019 immediate bosses play a critical role in facilitating their internal motivation, so HR teams should make clear what is expected of people leaders.<\/p>\n Individuals must believe that their bosses value their contributions and care about them as people. <\/strong> Employees who feel supported by their bosses have a sense of security and self-worth that allows them to draw on internal motivation. In contrast, when boss support is lacking, managers feel threatened and insecure and will draw on less internal motivation. So, ensure your managers are always helping to build greater psychological safety at work<\/a>.<\/p>\n Bosses should also behave in ways that allow managers to use their inner resources, <\/strong>including holding coaching conversations<\/a> to encourage problem-solving, rather than imposing solutions. They should listen to their employees\u2019 ideas, understand their interests and preferences, and find ways to align opportunities, projects, and job assignments with work that their employees will find personally meaningful.<\/p>\n Extrinsic rewards are a fundamental part of organizational life. Their impact depends on how the rewards are designed and administered.<\/p>\n Affirming rewards motivate employees by recognizing managers that fulfill important, challenging (but not impossible) goals<\/strong>. Common rewards such as pay increases, bonuses, stock options, promotions, and recognition are affirming if<\/em> they\u2019re tied to important goals and<\/em> are not administered in an oppressive manner.<\/p>\n Provide access to development opportunities.<\/strong> Today, employees simply expect their organizations to provide them with opportunities for growth. Providing\u00a0leadership programs<\/a>, as well as coaching and mentoring, particularly for new leaders<\/a>, can help managers build self-awareness, understand their own strengths and weaknesses, and grow as leaders.<\/p>\n And importantly, HR leaders should work to ensure that managers and supervisors know how to show boss support for development<\/a>.<\/p>\n In many organizations, the environment is highly politicized and managers feel that they must engage in political behavior (e.g., connecting to players with clout, manipulating others, stifling honest criticism, going along with others\u2019 ideas and actions) to maintain or advance their own status.<\/p>\n While political skills are important<\/a> for individuals to have, a highly political environment interferes with managers\u2019 internal motivation, as they work to maintain their image and gain external approval, rather than acting from within.<\/p>\n Organizational systems and leaders should ensure that rewards and promotions are based on valid measures of qualifications and performance,<\/strong> rather than connections to powerful people, and that bosses are savvy enough not to be duped by shameless self-promotion<\/a>.<\/p>\n So by all means, to boost employee motivation, offer the compensation, benefits, and perks that they need, deserve, and expect. But also pay attention to bosses, fine-tune reward systems and opportunities for development, and limit organizational politics.<\/p>\n Doing this doesn\u2019t eliminate the need for a solid compensation system \u2014 a solid compensation system remains a critical factor in employee engagement and motivation \u2014 but by focusing on these 3 levers as well, organizations can significantly increase employee buy-in and commitment.<\/p>\nBoth Extrinsic and Intrinsic Rewards Can Attract Talent, Motivate Employees<\/h3>\n
What Really Drives Employee Engagement and Motivation?<\/h3>\n
Tap Internal Motivation to Unlock Productivity<\/h2>\n
\n
How to Boost Employee Engagement and Motivation<\/h2>\n
How to Improve Employee Engagement<\/h3>\n
\n
3 Ways to Boost Employee Motivation<\/h3>\n
1. Expect bosses to provide support and encourage self-direction.<\/h4>\n
2. Create rewards systems that affirm.<\/h4>\n
\n
3. Minimize organizational politics and promote fairness.<\/h4>\n
A Closing Word on Motivating Employees<\/h2>\n
Ready to Take the Next Step?<\/h2>\n