Employee Engagement and Motivation PDF

Employee Engagement and Motivation Understanding Employee Engagement Employee engagement refers to the level of commitment, passion, and enthusiasm an employee brings to their work and role in an organization. It’s about how invested employees are in their jobs and their company’s success. ˆ En...

Employee Engagement and Motivation Understanding Employee Engagement Employee engagement refers to the level of commitment, passion, and enthusiasm an employee brings to their work and role in an organization. It’s about how invested employees are in their jobs and their company’s success. ˆ Engaged Employees are mentally and emotionally invested in their work as well as contributing to their employer’s success. ˆ It is crucial that managers and leaders communicate effectively to make employees feel valued, respected, and heard. ˆ HR’s role is to provide management with data about engagement levels and to design programs with employee engagement in mind. What is Engagement? Employee engagement is an HR concept that describes the level of enthusiasm and dedication employees feel about their jobs and their employers. Engaged employees are more likely to be productive and perform better, even if there are no incentives and rewards on immediate offer. Think of all the people who take badly paid jobs in start-ups or NGOs because they “believe” in Employee Engagement and Motivation 1 what they are doing. They are motivated by more than their paychecks, and while compensation may be a motivating factor, more pay doesn’t necessarily lead to more engagement. In fact, many employees who are disengaged “work to rule” - they do just enough to keep their jobs, but they won’t go out of their way to help the organization succeed - in fact they might be the reason why an organization fails to meet its strategic goals. Employee Engagement and Motivation 2 According to the Corporate Leadership Council, highly-committed employees try 57% harder, perform 20% better, and are 87% less likely to leave than employees with low levels of commitment. According to the Society for Human Resource Management (SHRM), there are three categories of employees: ˆ Actively disengaged: act out their unhappiness and undermine the organization. ˆ Disengaged: put in time but have no passion for their work. ˆ Engaged: work with passion and feel connected to the organization. Measuring Engagement Engagement should be measured often so that action can be taken to increase it. You can measure employee engagement in a number of ways: ˆ Annual employee engagement surveys. ˆ Pulse engagement surveys. ˆ Employee net promoter score (eNPS) ˆ Employee aps with analytics features. ˆ Performance reviews and feedback meetings. ˆ Exit interviews. ˆ Internal communication receptiveness. ˆ Metrics like voluntary turnover rate, absenteeism and productivity Employee Engagement and Motivation 3 Pulse Surveys: a short set of questions sent to employees regularly to gather feedback and gauge feelings about specific topics like management support or inclusivity. They are different from employee engagement surveys, which are designed to measure overall satisfaction and engagement and shorter too, with 10–15 questions that take less than five minutes to complete. Engagement Metrics: Metrics can be used to measure employee engagement within an organization. It is important to note that some of these metrics should be evaluated in a contextual setting, taking into account specific external factors. ˆ Employee Net Promoter Score (e-NPS): This metric measures employee loyalty, satisfaction, and commitment by asking employees how likely they are to recommend their organization to others. ˆ Voluntary Attrition Rate: This metric calculates the percentage of employees who voluntarily leave an organization. A high rate may indicate low engagement levels, but it should be considered alongside the reasons for attrition. ˆ Absenteeism Rate: This metric tracks the number of unplanned absences taken by employees. A higher rate often reflects poor employee engagement. ˆ Productivity: This metric focuses on the output that employees deliver relative to the input. Engaged employees tend to have higher productivity levels. Different parameters should be used to measure productivity across different functional areas. ˆ Leave Days Used: This metric examines the number of vacation days or paid time off used by employees. A healthy amount of vacation days taken can indicate good work-life balance and higher engagement levels. Employee Engagement and Motivation 4  ˆ Employee Health and Wellness: This metric considers stress levels, burnout, and the number of sick days taken. High engagement is often associated with lower stress and better health. ˆ Employee Ratings and Reviews: This metric involves monitoring employee feedback on platforms like LinkedIn or Glassdoor. Positive reviews and high ratings generally reflect higher engagement levels. Strategies for Motivating Employees As HR management theory evolved, there have been many interesting theories about how motivation functions to increase productivity. What really matters are the practical skills and actionable strategies that management can use to get results. ˆ Theories on motivation range from Taylorism, and Maslow’s Hierarchy of Needs to McClelland’s Three Needs Theory, Adams’ Equity Theory, Vroom’s Expectancy Theory, and the Porter-Lawler Expectancy Model. Employee Engagement and Motivation 5  Motivation Theories HR management theory is highly focused on motivation. So, let’s take a quick tour through the main theories of motivation: ˆ Scientific Management/Taylorism (Frederick Taylor, 1911) Employees are motivated primarily by money. To increase productivity, tasks should be standardized and simplified. Financial incentives lead to increased worker effort. ˆ Hawthorne Experiments (Elton Mayo, 1920s) Employee productivity is influenced by factors beyond just financial compensation. The attention and care shown to workers can significantly impact their motivation and output. Workers are not solely motivated by money; social and psychological factors also play a role. Employee Engagement and Motivation 6  ˆ Maslow’s Hierarchy of Needs (Abraham Maslow, 1943) Individuals have a hierarchy of needs, ranging from basic physiological needs to self-actualization. | Physiological needs: These are basic needs for survival, such as food, water, and shelter. In the workplace, this translates to a need for a paycheck to afford these necessities. | Safety needs: Once physiological needs are met, people seek security, stability, and protection from harm. In the workplace, this includes job security, health insurance, and safe working conditions. | Love and belonging needs: After feeling safe, people desire social connection, intimacy, and a sense of belonging. In the workplace, this means feeling connected to colleagues and having positive relationships with managers and teammates. | Esteem needs: When people feel a sense of belonging, they seek recognition, status, and a feeling of accomplishment. In the workplace, this translates to receiving praise, positive feedback, promotions, and increased responsibilities. Employee Engagement and Motivation 7  | Self-actualization needs: At the highest level, individuals strive to reach their full potential and find meaning in their work. In the workplace, this means having opportunities for creativity, autonomy, and personal growth. Lower-level needs must be met before higher-level needs can become motivators. Motivational strategies should align with the individual’s current level of need. Employee Engagement and Motivation 8  ˆ Herzberg’s Two-Factor Theory (Frederick Herzberg, 1968) Job satisfaction and dissatisfaction are influenced by different factors. Hygiene factors (e.g., salary, working conditions) can prevent dissatisfaction but don’t necessarily lead to motivation. Motivators (e.g., achievement, recognition) are intrinsic to the work itself and drive true motivation. Employee Engagement and Motivation 9  ˆ McClelland’s Three Needs Theory (David McClelland, 1960s) Individuals have three primary needs: achievement, power, and affiliation. The dominant need varies among individuals and influences their motivation. Motivational strategies should be tailored to the individual’s dominant need. ˆ Adams’ Equity Theory (John Stacey Adams, 1963) Individuals are motivated by a sense of fairness and equity in the workplace. Employees compare their input/output ratio with that of their peers. Perceived inequity can lead to demotivation and attempts to restore balance. Employee Engagement and Motivation 10  ˆ Vroom’s Expectancy Theory (Victor Vroom, 1964) Motivation is seen as a result of a an individual’s expectations and preferences concerning “Valence”, “Expectancy”, and “Instrumentality”. | Valence: Valence is the subjective value an employee places on a potential outcome or reward. For example, if the outlook of obtaining a company car is very attractive to an employee, then their valence for this outcome will be high. In contrast, if the employee is not particularly interested in receiving a company car, then their valence for this outcome will be low. | Expectancy: Expectancy is an employee’s belief that their effort will directly result in achieving the desired performance level. For example, if an employee is confident, they will be able to reach a performance target, then their expectancy for this outcome will be high. In contrast, if they are doubtful as to their ability to reach the performance target, then their expectancy will be low. | Instrumentality: Instrumentality measures an employee’s belief that their performance will be rewarded as promised. For example, if an employee is confident that if they reach a performance target, they will receive the reward (e.g. company car) that their manager promised them, then their instrumentality will be high. In contrast, if they doubt that their manager will provide them with the reward initially promised, then their instrumentality will be low. According to the Expectancy Theory, the higher Valence, Expectancy and Instrumentality are, the higher Motivation will be. Employee Engagement and Motivation 11  Intrinsic vs Extrinsic Rewards Rewards are either intrinsic or extrinsic. ˆ Intrinsic rewards are internal and intangible, such as the satisfaction from mastering a new skill. ˆ Extrinsic rewards are external and can be financial or non-financial, such as praise or a promotion (they can also include intangibles like the ability to work remotely or participation in a mentoring program). Ideally, employees’ work aligns with what they find intrinsically motivating. While managers cannot directly provide intrinsic rewards, they can influence situations and design roles to support employee motivation. Employee Engagement and Motivation 12  Motivation Strategies Motivation theories can be useful as a subconscious backdrop for leadership decisions, but they don’t provide direct, practical applications for day-to-day work situations. Managers should augment their knowledge with skills that can be applied more practically such as: Rewards and Recognition Rewards and recognition are crucial for boosting employee morale, productivity, and engagement. Effective Forms of Recognition Both monetary and non-monetary forms of recognition can be effective ways to boost employee morale, productivity, and engagement. Some examples include: ˆ Monetary rewards: Base pay, bonuses, incentives, commissions, and profit-sharing. ˆ Benefits: Health insurance, retirement plans, paid time off, disability insurance, and life insurance. Employee Engagement and Motivation 13  ˆ Work-life balance: Flexible work arrangements, wellness programs, and family-friendly policies. ˆ Career development: Training, education, and opportunities for advancement. ˆ Recognition and rewards: Non-monetary forms of appreciation, such as awards, public recognition, and employee of the month programs. ˆ Culture and environment: A positive work atmosphere, company values, and social responsibility initiatives. Non-monetary recognition can also be very effective: ˆ A sincere “thank you” can be a powerful motivator. ˆ Time off and flexible work arrangements are highly valued rewards. Employee Engagement and Motivation 14