Экономические науки/6. Маркетинг и менеджмент

Okhrimenko I.Y., Doletskaya G.M.

Donetsk national university of economic and trade

named after Mikhail Tugan-Baranovsky, Ukraine

Secrets of effective employee motivation

The job of a manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. But that's easier said than done! Motivation practice and theory are difficult subjects, touching on several disciplines. In spite of enormous research, basic as well as applied, the subject of motivation is not clearly understood and often poorly practiced. To understand motivation one must understand human nature itself. And there lies the problem! Human nature can be very simple, yet very complex too. An understanding and appreciation of this is a prerequisite to effective employee motivation in the workplace and therefore effective management and leadership.

The objective of the report is to give recommendations on how to motivate employees effectively using financial and non-financial incentives.

Research and observations show that well motivated employees are more productive and creative. There is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it's thirsty - so with people. They will do what they want to do or otherwise motivated to do.

Job performance is considered to be a function of ability and motivation. Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. Incentive system always consists of two main blocks: financial and non-financial incentives. Non-financial incentives aimed at increasing employee loyalty to the company while reducing the costs of compensation to employees of their labor.There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation.

·                     Positive reinforcement / high expectations

·                      Effective discipline and punishment

·                     Treating people fairly

·                     Satisfying employees needs

·                     Setting work related goals

·                     Restructuring jobs

·                     Base rewards on job performance

These are the basic strategies, though the mix in the final 'recipe' will vary from workplace situation to situation. Common types are the following incentives: promotion, empowerment, power increase, the percentage of economic benefits, the recognition, the best place at the table at the meeting, the head verbal thanks to the presence of colleagues, material premium to the reference "for what", life and health insurance , an extraordinary paid leave, the guarantee to preserve jobs, lower loan rates for training, housing, payment of the cost of repairs and petrol private car, long-term employment contracts, the ability to communicate directly with the supreme leader, payment for medical services, etc. However, there is no standard package of incentives, it should be targeted, targeted to a specific employee.

There is no doubt that motivation is the crux for good performance. There is no doubt that we live in a money-motivated world. Any amount of human relations cannot compensate a lack of monetary reward. If the reward is right, good human relations will give that extra zest to a team, motivating them to give their best efforts. Insufficient monetary reward cannot be compensated by good human relations.

Merit must be measured and rewarded regularly, if it is to be encouraged and sustained. The 'gold banana' in Foxboro has its origin in just an ordinary banana which one of the pioneers could muster on the spur of the moment when he discovered extraordinary performance by one of the employees.

There is an indication from various surveys  that the blue-collar and white-collar workers do not attach the same importance to financial incentives. This is probably more due to differing value system of the two, rather than the importance each attaches to the money. To be effective, the reward should be 'tailored' to each individual, but only as part of the total compensation concept. It is essential to develop an overall program within which each compensation package must be individualized. If you have an out-going people, don't stick them in a back room and have them spend all day adding numbers. They will soon get bored, start making mistakes, and either quit or get fired. Don't put a shy, introverted person into sales and have them make cold calls. They will hate it and won't make many sales. Don't put a dreamer in charge of your accounting and don't put a detail-oriented person in charge of strategic planning.

So after all, and contrary to common belief, money is not the prime motivator. Though this should not be regarded as a signal to reward employees poorly or unfairly.

The secret to motivation magic simply is to respect employees as individuals and treat them as adults. Too many companies feel they have to keep secrets from their employees. They treat them like children who can't handle the truth. They feel they have to "shelter" or "protect" the employees from the harsh realities of the business. It's wrong. If you want your employees to be motivated, to out-produce their peers, to deliver more than they ever have in the past, be open and honest with them. Treat them like the adults they are and not like your children.

When you treat people as professionals, let them know that they are important contributors to the teams' success, and that their ideas matter, they will look for ways to improve their own performance. They will look for ways to innovate. They will seek out improvements and enhancements so they can increase their performance.

To draw the line, we can create six secrets of effective employee motivation: treat each employee with respect and as an individual; provide fair compensation including benefits; clearly communicate expectations, goals, rules; put employees in places and situations where they can succeed; get them involved and keep them informed - give them any information that tells them how their work fits into the overall company effort; provide training and show them advancement opportunities. Help your employees turn a job into a career. Unexpected and irregular incentives motivate better than projected, they almost become a part of the same salary.

References:

1.    Сколько и как платить дополнительно. Available from: http://www.management.com.ua/hrm/hrm012.html

2.     Employee Motivation: Theory and practice. Available from: http://www.accel-team.com/motivation/index.html

3.    F. John Reh «Employee Retention Tips». Available from: http://management.about.com/od/employeemotivation/a/EEretention09.htm