adminThe conclusion in the report was that companies that try to link the objectives of change programmes to the compensation of staff find that it rarely enhances their motivation for change to the extent desired.
The reality is that in many companies, it is a challenge to incorporate a meaningful link to a change programme within compensation systems that are based on many things.
However, many studies have found that for human beings satisfaction equals perception minus expectation.
I once attended a training session where an experiment was carried out. The co-ordinator asked participants to build blocks of trains. The first group was told to put their finished blocks under the table and were advised that it would be broken down later.
The second group had their work broken down right in front of them, and were given back the disassembled pieces for use to build another one if they wished to do so.
The difference in meaning was small. Both figures were all going to be broken down eventually, however it made a big difference in people’s motivation and willingness to work.
The first group that had their blocks stashed under the table had built 11 structures on average, and the second had seven.
In another instance I recently stumbled upon an article in one of the weekly magazines which discussed Gordon M. Bethune, who after turning around Continental Airlines, sent an unexpected US$65 voucher to every employee when Continental made it to the top five for on-time airlines.
John McFarlane, former CEO of ANZ Bank, sent a bottle of champagne to every employee for Christmas with a card thanking them for their work on the company’s “Perform, Grow, and Break-out” change programme.
Most change managers like me would refer to these as mere token gestures and argue that their impact is limited and shortlived.
Employees might have a different opinion and say that the rewards have a positive impact on change motivation that lasts for months, if not years.
It is a costly mistake to get lost in the false theory that more money equals happy employees.
Let’s face it, cash will always be a major factor in motivating people and a solid compensation plan is critical to attracting and keeping key personnel.
That is not the same as additional cash as a way of motivating – cash is not always the only answer and in many cases not even the best answer. If employees would receive commission vouchers frequently — because they are unanticipated they get spent and forgotten quickly.
A company can choose a point system as opposed to cash. This type of programme is very popular with employees because they purchase things they would never normally have the money to afford.
Those points may then be used to purchase an enormous variety of things.
For the sober-minded managers, what motivates them is seeing the final/end product.
I tend to agree with them because seeing the fruits of your labour will drive you to achieve more.
Depending on your level of social appreciation, seeing that the work you have done helps others is bound to motivate you.
You must appreciate that in the 1980s, good leadership was usually synonymous with assertive decision-making. Leaders were celebrated for their courage and risk-taking when shaping corporate strategies.
Times have, however, changed. Today, leaders go beyond the day-to-day operations and are expected to be social scientists, and the great leaders of today and tomorrow.
These must be gifted individuals who have mastered the art of motivation.
The ability to understand people and to be able to tap into their respective motives are the skills that make the difference in today’s society.
Till next week, may God richly bless you.
Shelter Chieza is an adviser in management issues. She can be contacted at [email protected]
Online Reporter