Many entrepreneurs are thinking about this way of increasing business efficiency as a system for motivating staff in an organization - we will look at an example in this article. Rewarding employees can be more than just monetary. For many modern people, it is important to feel successful, in demand, and to see prospects for development. A prestigious job is associated not only with high income, but with a variety of bonuses and corporate programs.
Non-material incentives for employees are beneficial to the employer, since in such conditions labor productivity increases. Well-motivated employees perform better and are loyal to their employer. If an enterprise has any well-thought-out motivational program, it is a leader among its competitors.
Goals and objectives of motivation
Before introducing certain employee motivation programs into an organization, the manager (or HR specialist) must clearly formulate their goals and objectives. As a rule, the goal is to increase employee loyalty to the company and improve their performance. The list of tasks is more significant:
- Improving employee qualifications - some programs allow you to “upgrade” work skills, get rid of weaknesses and increase efficiency. Achieving new skills should be rewarded. For example, if an elderly employee did not know how to use a computer when he joined the organization, but learned how to use it a few months later, this achievement should be noted.
- Ensuring employee stability. Personnel turnover can greatly harm a business. In any case, novice workers work less efficiently than experienced ones. In addition, constantly open vacancies give the company a bad reputation: people wonder why everyone is leaving. A loyalty program should create in employees a desire to work for the company for as long as possible.
- Achieving the highest results. An employee with a high level of motivation achieves greater results. This is necessary for the competitiveness of the enterprise.
It is necessary to clearly formulate the purpose and objectives of the motivational program
What do motivation programs consist of?
Conventionally, all incentives for employees can be divided into 2 types : material (economic) and intangible (non-financial).
Economic ones include:
- free meals/meal allowances;
- payment for transport/service transport (relevant for remote enterprises);
- compensation for gym fees/medical procedures;
- training;
- preferential mortgage programs/housing provision.
Financial incentives mean a lot to employees , as it clearly demonstrates to them that the employer really cares about their well-being and is interested in their work. However, not every entrepreneur is ready to spend money on motivating employees and compensating them for any expenses. Then it’s worth considering non-material methods of encouragement:
- praise from superiors/installation of an honor board;
- opportunity for promotion and career growth;
- friendly atmosphere in the team;
- company prestige;
- corporate events.
With non-material incentives the situation is much more complicated. Not all people need praise from their superiors, and many perceive awards with diplomas and presence on the honor board as a relic of Soviet times. Corporate events greatly contribute to team building, but not all employees enjoy them. A calm atmosphere in the workplace is one of the guarantees of employee stability, but it is impossible to directly influence it. The prestige and reputation of the company is also a long-term achievement of its leaders.
The ideal solution would be a combination of material and non-material methods of encouragement in proportions beneficial to the entrepreneur and sufficient to achieve goals. Next, let’s look at an example of how company managers manage to implement motivational programs.
Features of motivation in accordance with different types of employees - 5 main types
All employees can be divided into several categories depending on their character and attitude to work. Knowing the type of each person, it is easier to choose the most effective methods of motivation. Even if the type is mixed, this approach will still work.
So, take a closer look at your colleagues, analyze your observations and draw conclusions about who works in your team.
Type 1. “Toolkit”
For such people, the main thing is the size of the salary. They do not attach their souls to either the team or the institution. This does not mean that their relationships with colleagues are bad. They can be quite friendly. But if a competing company offers such an employee a salary higher than yours, he will leave without hesitation or regret.
How to motivate toolmakers? Of course, with money. High salaries, bonuses and cash bonuses. If necessary, a system of fines is also used.
Type 2. “Professional”
For such an employee, work is a means of self-expression. The main thing is that he finds his work interesting. Therefore, he takes on the most difficult tasks and loves innovative directions. Professional interest in work can encourage him to complete a large volume in a short time.
Since the entire being of a professional is filled with passion for his work, the amount of salary fades into the background for him. It is best to motivate this type of employee by elevating him to the rank of expert. That is, constantly ask for his advice and emphasize his professionalism and contribution to the enterprise.
Type 3. "Patriot"
An employee of this type does not separate his mission from the general one, just like success. He lives for work and feels like an integral part of the company, and a necessary one. It is very important for him to know that his enterprise needs him.
Such employees often manifest themselves as social leaders in their teams. You can motivate them financially, but it will be much more effective to express gratitude and emphasize its significance and irreplaceability.
Type 4. "Master"
Despite the fact that such a person works for hire, the main thing for him is independence. He does not accept any control in the work process. It is easier for him to take full responsibility for risky decisions.
An effective motivation for this type of employee is to recognize his authority and provide freedom of decision-making. Monetary incentives for such employees are secondary.
Type 5. "Lumpen"
This is the most hopeless case. No activity, initiative, desire for professional development and growth. Lumpen seeks only to minimize effort in performing work duties.
Finding effective motivation for such an employee is very difficult. Most likely, it doesn't exist at all. Since he is equally not interested in material rewards, career growth, praise and certificates of honor.
The most likely way to influence the lumpen is through increased control and an authoritarian management style, since the danger of punishment is the only thing that can somehow excite him.
You will find information on ways to increase motivation in the article “Motivating Employees.”
Simple ways to motivate yourself that don't require planning
Many entrepreneurs want to manage well-motivated employees, but few are willing to spend a lot of effort on this. Some managers use very simple, long-term methods that do not require constant monitoring:
- Joint meetings and “planners” , when not only managers, but also ordinary employees are present at the meeting. This way employees feel involved in the process and feel important. In addition, at such meetings, the “direct communication” mode is activated, when an employee, without intermediaries, can report an idea and hear a response directly from his superiors.
- Feedback. The easier it is for an employee to communicate his suggestions for improving productivity, optimizing or solving problems, the more interested he is in work. The ability to write to a special email address or leave a note in the mailbox will give every employee the opportunity to speak out.
- Recreation areas. A good solution would be to equip a special room for employees to relax. Many leading companies have already done this and demonstrated how taking a comfortable break improves productivity. Such an area should have comfortable furniture (a sofa or armchairs), a table, a kettle and a coffee machine, and possibly some magazines and books. Some even manage to set up a table tennis table.
- Support from family members. New Year's gifts for children, trips to sanatoriums and camps, fundraising in case of some difficult life situations and help to the employee's relatives will play a very important role for many. It is important for a person to know that in case of any difficulties, the employer will support him and will not become an obstacle in solving problems.
Many people perceive awarding certificates as a relic of Soviet times.
The most common motivation programs
Next, let's look at what ready-made examples of motivational programs are available. The diagram of each of them will also be described below. Check out the full list, analyze and select the program that is most suitable for solving problems within your company.
Point system
One of the simplest programs, when an employee is awarded points for fulfilling certain indicators (and deducted for non-compliance). At the end of the month, the points are summed up and employees receive remuneration according to them. This could be a cash bonus, an extra day off, or some other reward. The point system is quite easy to use and requires only careful calculation and honest ranking. It is better to appoint an employee responsible for counting. For example, a simplified diagram of the scoring system looks like this:
- The “incentive” fund for a month is 20 thousand rubles. It is announced in advance that 10 thousand is awarded for 1st place, 7 thousand for second place, 3 thousand for third place.
- A specific list of achievements for which points are awarded is determined. A responsible person is appointed who monitors the awarding of points.
- Over the course of a month, employees collect points and compete. On the last day of the month, a rating is compiled, according to which the award is awarded.
Japanese reward system
The Japanese are known throughout the world as hardworking and efficient workers. This is largely due to the Japanese motivation system, which is built on several key principles.
- The most important thing is loyalty to the company. The longer a person works in one organization, the better. Only employees of this company are appointed to high positions, and not specialists transferring from other organizations. For every six months or year of service, the employee will receive a monetary incentive.
- Loyalty to the corporate spirit. When moving to a new place of work, a person’s “experience” is reset to zero. The Japanese rarely change jobs voluntarily, and also obey most of the employer's demands, for example, working overtime, refusing vacations, in order to earn a good reputation.
- A person's career is constantly evolving. If an employee shows good results, he is necessarily promoted. A situation cannot arise where a talented specialist “sits” for a long time in a position that he has outgrown. Employers carefully monitor the progress of their subordinates and reward those who grow professionally.
As you can see, the Japanese motivation system is very specific and is based on employee loyalty to the company and career opportunities. It will not be suitable for Russian realities, but you can borrow from it the principle of constantly rewarding good, loyal employees who have been working for you for a long time.
Grading
In the USA and Western European countries, a more complex system of personnel motivation is widespread - grading. With this approach, a list of indicators is established for each position, for the achievement of each of which monetary incentives are provided. This creates several payment options for each employee: without meeting targets, with them being partially met, or at most.
As a rule, the “grades” or indicators are:
- working hours;
- number of subordinates;
- meeting sales/production standards;
- level of discipline;
- speed of problem solving.
In fact, each employer sets the “grades” and their prices independently. This is precisely the approach that vacancies are based on, where the salary is indicated within two numbers, for example from 20,000 to 50,000 thousand. Such a system requires serious development and planning so that all indicators are assessed fairly. However, in practice, grading is implemented quite simply, and employees quickly understand what exactly is required of them.
Conduct a survey among employees to learn more about their vision of motivation
Combined program
Most likely, an entrepreneur will have to combine several approaches and methods of motivation at once , and combine material incentives with intangible ones. Most likely, you won’t be able to create a truly effective incentive program the first time. Here it is important not only to correctly plan motivation and expenses for it, but also to be creative and find out what exactly employees are interested in.
For example, it is important for young professionals to see a career ladder in front of them, to feel like they are part of a prestigious company and to work in a modern office. More mature professionals value stable income, corporate spirit, a clear reward system and a variety of benefits.
Older generation employees need a calm atmosphere in the team, the attention of their superiors and the opportunity to contact them directly, feel like a sought-after specialist, use their accumulated experience and learn something new in a comfortable environment.
Plan your motivation system taking into account who works for you. Find out more about your employees, perhaps conduct a survey and find out directly what your employees need, besides money.
Driving force at work - what is it?
It has long been proven that motivation as a process relates to the psychophysiological reactions of a person. Back in 1937, the American neurologist J. Peipets spoke about the connection between internal motivating factors and the functioning of the limbic system of the brain. Other authors have studied the relationship between motivation and instincts. For example, Maslow’s well-known pyramid describes a hierarchy of human needs, which clearly shows the uselessness of the “spiritual” without basic goods.
The motives of each of us depend on complex combinations of the results of thinking, conscious and subconscious decisions, emotions and circumstances. It is impossible to completely control the formation and development of motivation, but with the right approach, the most favorable conditions can be created for it. For this purpose, a motivational system is created in the team: a set of incentives and processes within the company that are aimed at increasing the efficiency and productivity of employees.