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1、How Companies Get Motivation WRONG!Kurt Nelson .Many companies get motivation right.Many companies get motivation rightYeah for them! .But many companies get motivation wrong .And some get it spectacularly wrong! .And some get it spectacularly wrong! Ouch!.And thats not good.And thats not goodDecrea
2、sed Motivation Leads to: Lower productivityHigher turnoverDecreased sales Lack of creativity .In our work with companies across the country, we have had the opportunity to examine why this happens.In our work with companies across the country, we have had the opportunity to examine why this happensA
3、nd understanding is the first step in getting it RIGHT . Focus only on money No manager discretion No manager tools Too complex Wrong measure CommunicationFixated on costsHere is a short list that describes just a few of the more common mistakes that weve seen.1. Focus too much on the drive to Acqui
4、re (i.e., the pay plan).1. Focus too much on the drive to Acquire (i.e., the pay plan)Companies that do motivation right have a comprehensive plan that emphasizes more than just pay. They focus on: TeamworkWork EnvironmentWork/Life BalanceGrowth OpportunitiesNew Challenges Commitment to IdealsCorpor
5、ate Identity Broader Purpose for Employee.2. Dont give front line managers enough discretion .2. Dont give front line managers enough discretion Front line managers typically have the greatest impact on individual employees perception about the company. Limiting how they can motivate or not trusting
6、 them to do it right decreases their motivational effectiveness.3. Dont give front line managers enough tools .3. Dont give front line managers enough tools Companies that do motivation right provide their managers with:Motivational Training (e.g., “How to Motivate 101)Discretionary Reward ProgramsE
7、asy to Use ReportsMotivational Support from home office“On the Spot Awards .4. Making incentives too complex.4. Making incentives too complexWhile companies might want to make their IC plans more complex to try to ensure fairness or meet certain budget expectationsThe more complex and harder they ar
8、e to understand, the less effective incentive plans are at driving behavior change. .5. Rewarding the wrong things .5. Rewarding the wrong things Too often, companies good intentions can lead to rewarding the wrong behavior. The most common mistakes:Rewarding things that are not in alignment with st
9、rategyReward things because they are easy to measureRewards have become entitlements and perceived as “unchangeable .6. Not communicating enough.6. Not communicating enoughHighly motivating companies over communicate to their employees regarding their: Pay Plans Total Rewards Strategy Reward Culture
10、 Company Mission All of these are vital to a highly motivated workforce. .7. Focusing on the “cost of motivational programs not the results .7. Focusing on the “cost of motivational programs not the results Focusing on the “cost of a program is short sighted. The real focus should be on the motivati
11、on that the program instills and the results or “lift the program has on performance. Cheapest isnt always the best! .Does any of this sound familiar? .The real question is .The real question is what to do about this?.First recognizing where we tend to go wrong is key .First recognizing where we ten
12、d to go wrong is key We just covered that.Then we merge theory and expertise to develop solutions using .The 4-Drive Model Employee Motivation ofLawrence & Nohria 2002Then we merge theory and expertise to develop solutions using .AcquireBondChallenge & ComprehendDefendThe 4-Drives.AcquireBondChallen
13、ge & ComprehendDefendWe need to focus on ALL 4 Drivestogether (not just Acquire).Then give front line managers the tools, the training and the discretion to use them effectively.Then give front line managers the tools, the training and the discretion to use them effectivelyTools:Easy to use sales or
14、 performance reportsManager discretionary incentives (cash and non-cash)Simple “On the Spot Awards Recognition programs peer-to-peer, manager nominated, VP review Training on how to use rewards effectively / motivate employees Discretion: Provide Managers with clear objectivesCreate rules that are f
15、lexible enough to accommodate Managers special situationsMonitor only for bias and cheating Utilize online platforms to manage programs and provide flexibility Direct access to IC/HR team .Simplify, simplify, simplify.Simplify, simplify, simplifyRework your incentive plans to simplify them: Reduce t
16、he number of items youre paying on (3 or less is best) Focus only on key results that people have control overSimplify the math for calculating earnings/winningLimit the number of qualifiers, multipliers, kickers or other factors .Conduct an analysis on what behaviors your reward programs are drivin
17、g.Conduct an analysis on what behaviors your reward programs are drivingConduct research to ensure that your programs are: Driving behavior that is in-line with company strategy (e.g., profit not just revenue)Measuring the appropriate results / behaviors and not just those that are easy to quantifyH
18、ave not become so entrenched that they are perceived as entitlements and not incentivesLeveraging (not duplicating) other incentives or pay plans in the behaviors they are rewarding .And make sure that this is ALL communicated with a PASSION!.And make sure that this is ALL communicated with a PASSIO
19、N!Utilize live meetings, well done Power Point presentations, professional print and online communications, voice mails, flash s, memos, manager talking points, posters, etc .Finally dont let Purchasing focus you just on the direct cost of a program make sure you look at how the program drives motivation and results. .A program that increases sales performance 1% at a $1Billion dollar company = $10 Mi
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