| Employee Motivation Strategies | | | | employees' talents and motivation, managers could |
| 19th January 2006 | | | | invest more time in strategic planning and further |
| Author: R.L. Fielding | | | | motivating employees. |
| When people think of honoring employees for jobs | | | | Be Wary of Financial Incentives and Rewards |
| well done, they may typically think of monetary | | | | Certainly, monetary incentives and rewards could be |
| rewards. However, these may be neither necessary | | | | part of your employee-recognition program. However, |
| nor the best type of reward. Once offered, cash | | | | it is critical that these incentives not be the only or |
| bonuses can come to be expected and quickly | | | | primary strategy for motivating and retaining |
| forgotten, especially if they are the only recognition | | | | employees. |
| employees receive. | | | | On the surface, financial incentives may seem to be |
| By contrast, frequent, positive feedback provided | | | | the most meaningful forms of motivation for |
| within an enjoyable, team-oriented environment makes | | | | employees. However, the short-term benefits may be |
| a tremendous difference in employees' sense of being | | | | far outweighed by long-term disadvantages, which |
| valued and, as a result, their commitment to your | | | | could turn your costly financial incentives into serious |
| company. With or without financial rewards, these | | | | deterrents to employees' productivity. As a result, your |
| cultural aspects of the workplace could be the | | | | company's profitability could suffer, and you may be |
| smartest investment in the staff and business. | | | | faced with further costs of replacing employees who |
| Recognize and Reward High-Quality Work | | | | leave for more satisfying work environments. |
| Employees are bound to be much more productive | | | | Typical of human nature, people tend to think about |
| when they work in a positive, supportive environment. | | | | what their employers have (or haven't!) done for them |
| For example, Tejas Securities Group, Inc., a full-service | | | | recently, especially if they do not feel appreciated. |
| broker/dealer and investment banking firm, strives to | | | | Furthermore, a brief word of gratitude only when a |
| maintain an enjoyable, family-oriented atmosphere in | | | | financial reward is presented will not be perceived as a |
| which all employees focus on achieving team goals. | | | | sincere expression of appreciation. The easiest and |
| This company goes an extra step by bringing in | | | | most cost-effective way to avoid this pattern is to |
| catered lunches every day for all the employees to | | | | maintain open communication with positive feedback |
| enjoy together. "In this environment, everybody wins. | | | | and encouragement at all times, with occasional |
| We enjoy the dynamics of striving toward our goals | | | | celebrations - where presentation of cash rewards or |
| together as a team," said Kurt Rechner, President and | | | | announcement of new financial incentives, if any, |
| Chief Operating Officer of Tejas Securities Group. | | | | should be just a small part of these events. |
| Praising employees for achieving their goals is | | | | Similarly, if cash bonuses are presented on a schedule, |
| important in maintaining an enjoyable work | | | | such as around the holidays, they probably come to be |
| environment. Management can show their appreciation | | | | expected. This reaction could be avoided if bonuses |
| with positive feedback, however, if they go a bit | | | | are given randomly, when you have extra money to |
| beyond verbal praise, they can enhance employees' | | | | share with employees. However, before deciding to |
| motivation without spending a lot of money. For | | | | present cash bonuses, determine if that money could |
| example, celebrate successes with bagels or pizza. | | | | be better used to expand your business. Express to |
| Invite employees to share their experiences in, and | | | | employees how their contributions resulted in the extra |
| coworkers' contributions toward, accomplishing the | | | | cash flow, and rally them up for investing that money |
| goals. Peer recognition will further reinforce employees' | | | | into exciting new possibilities for themselves and the |
| sense of teamwork and commitment. Conclude the | | | | organization. |
| celebration bypresenting mugs, T-shirts or other | | | | In addition to cash bonuses, other types of monetary |
| tangible items that will serve as reminders of their | | | | rewards are profit-sharing plans and Employee Stock |
| success and inspiration for ongoing achievement. | | | | Option Programs (ESOPs). Profit-sharing plans are |
| With these good intentions, there are still potential | | | | simple types of retirement plans in which employers |
| drawbacks. For example, improvements in | | | | contribute an amount of money equal to a certain |
| performance may be temporary, rather than long term. | | | | percentage of eligible employees' salaries. With |
| In addition, employees could lose their intrinsic | | | | ESOPs, the company contributes to a trust, and these |
| motivation: they can become motivated solely for | | | | funds are allocated to individual employee accounts. |
| gaining a tangible prize, especially if it's a substantial | | | | Also, employees can reserve part of their paychecks |
| monetary reward, rather than for experiencing the | | | | to purchase shares of the company's stock. |
| satisfaction of accomplishment. These challenges can | | | | Profit-sharing plans offer a strong incentive for |
| be avoided by maintaining a positive, motivating | | | | employees to be more involved with the company. |
| atmosphere. | | | | The staff is more likely to work as a team and accept |
| Inspire Employees' Creativity and Empower Them to | | | | greater responsibility for increasing the company's |
| Use It | | | | profitability. Another advantage is that financial benefits |
| Recognizing success is critical, and equally important is | | | | are measurable and objective. As a result, |
| inspiring employees to work toward achievements. | | | | management would not risk showing favoritism, which |
| Your staff will be inspired by knowing their | | | | would cause this motivational strategy to backfire. |
| contributions are valued and that management is | | | | On the contrary, profit-sharing plans can also have |
| confident in their capabilities. At Tejas Securities Group | | | | potential drawbacks. They do not guarantee that |
| for example, "The Chairman's Cup", a silver chalice | | | | employees will be focused on customer service, |
| inscribed with its name, is awarded each month to an | | | | productivity or other essential elements for the |
| employee who is recognized for their individual | | | | company's success. If profit levels are ever too low to |
| contribution to the overall team's success. The winner | | | | be shared, employees will feel disappointed or even |
| is then announced in a company wide meeting and is | | | | resentful. Even if this does not occur, employees may |
| awarded the cup to display at their work station. | | | | object to the lack of acknowledgment for their |
| Rechner noted "This announcement and award has | | | | individual achievements. Of course, this particular |
| become a fun and highly anticipated event, recognizing | | | | disadvantage can be overcome with strategies |
| the ongoing importance of individual contribution to the | | | | discussed previously. In any case, a negative situation |
| company's success." | | | | would lead to lower employee morale, which inevitably |
| Inspire creativity by providing freedom, time and other | | | | diminishes employees' motivation and performance. |
| resources to employees. Ask them what they need to | | | | On the positive side for ESOPs, employees directly |
| maximize their innovative thinking and productivity, and | | | | gain a sense of ownership, usually at levels |
| provide it with enthusiasm and encouragement. | | | | proportionate to how much stock each employee has. |
| To further stimulate employees' creativity and | | | | The potential disadvantage, similar to profit-sharing |
| confidence, support continual education through | | | | programs, is if stock options do not work out. |
| classes, seminars, subscriptions and memberships. | | | | Furthermore, emotional stress often associated with |
| Make information easily accessible through a work | | | | fluctuations in stocks could interfere with employees' |
| library. Ask employees to offer new ideas, request | | | | productivity. |
| proposals for new projects, and share employees' | | | | Certainly, financial incentives and rewards can be true |
| suggestions through publications, meetings and | | | | motivators, but only when balanced against the |
| recognition events. Most importantly, take action on | | | | potential drawbacks and packaged with ongoing |
| those ideas that have potential benefit for the | | | | verbal recognition, encouragement and support. At |
| company, and recognize employees who made any | | | | Tejas Securities Group, for example, "We supplement |
| resulting achievements possible. | | | | our employee-recognition program with an ESOP. The |
| While encouraging creativity and rewarding success | | | | employees' sense of ownership and the stock |
| may come somewhat easily, it may be more difficult | | | | investments' potential are icing on the cake - on top of |
| to stay optimistic when mistakes are made. However, | | | | the essential substance of open communication, |
| this is where positive reinforcement is even more | | | | teamwork and positive reinforcement," Rechner said. |
| critical. Employees will be much less likely to offer | | | | Launch a Positive, Ongoing Cycle with the Best |
| ideas if they are intimidated by management's | | | | Choices for Your Staff |
| reactions to possible mistakes. Keep in mind and | | | | When handled in a consistently positive manner within |
| express to employees that mistakes are learning | | | | a team-oriented atmosphere, all of these strategies |
| opportunities, which could lead to innovative ideas that | | | | contribute to an ongoing positive cycle: motivated |
| have a major, profitable impact on your company. If an | | | | employees are encouraged to be creative, which |
| idea doesn't work out, recognize the initiative and | | | | leads to accomplishments that gain recognition, which |
| effort. Employees will feel further inspired and satisfied, | | | | strengthens their sense of job satisfaction and boosts |
| knowing that management truly listens to their ideas | | | | their motivation. With all of these factors in place, staff |
| and supports their efforts. According to Rechner at | | | | members will produce more for the company. |
| Tejas Securities Group, "management's openness to | | | | The entire process should be continual and even begin |
| staff members' input, feedback, ideas and suggestions | | | | with the hiring selection. "It's essential to start with |
| is the cornerstone of good communications and strong | | | | quality people as the foundation, and then motivate |
| employee relationships. Everybody wins when they | | | | them to succeed," said Rechner at Tejas Securities |
| are all part of a supportive team." | | | | Group. It takes hard work, some money and a bit of |
| All of these steps contribute to a sense of | | | | luck to recruit employees who have the technical skills |
| entrepreneurship and empowerment, which are | | | | and personal qualities you need to strengthen your |
| essential to reinforcing teamwork and dedication. | | | | business. Maximize your investment in these individuals |
| Empowerment should be initiated on three levels: | | | | by establishing and maintaining a positive relationship |
| encouraging employees to be more active in their | | | | with them. |
| work; involving staff members to improve processes | | | | Company Information |
| and procedures; and enabling them to make more and | | | | Tejas Securities Group, Inc., a Texas corporation |
| bigger decisions. | | | | ("Tejas Securities"), is a wholly owned subsidiary and a |
| In addition to motivation and job satisfaction, | | | | primary business operating unit of Tejas Incorporated, |
| employees benefit with strengthened confidence to | | | | a publicly traded financial services company. Tejas |
| accept and pursue new responsibilities. Once a few | | | | Securities Group is a full service brokerage and |
| employees succeed, their enthusiasm and motivation | | | | investment banking firm that focuses on the following: |
| would become contagious throughout their teams or | | | | (i) proprietary research on distressed debt and special |
| departments. As a result, those groups would become | | | | situation securities, (ii) trading and other brokerage |
| more enthusiastic, proactive and therefore, successful, | | | | services to value-based institutional and retail investors |
| which further stimulates their team spirit. | | | | active in fixed income and equity instruments, and (iii) |
| Ultimately, your company has much to gain by | | | | corporate finance and strategic advisory services to |
| empowering staff members. By maximizing | | | | middle-market companies within our target industries. |