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What employees want vs.
what managers "think" they want
Managers are potentially offering the wrong incentives
Success is only possible when employees are connected to a common vision of the future of the
organization. Management typically develops incentive programs they feel will drive employee
behaviors to achieve their organizational goals. Typically these incentive programs are based on
management's perception of their employee's desires. However, research shows that management
has historically been out-of-touch with employee desires.
Managers mistakenly believe their employees have monetary motives and designed their incentive programs for
attaining goals and hitting company benchmarks to raises and bonuses. However, surveys dating back to 1946 have
consistently shown employees to be most motivated by shows of appreciation for their work (see chart below).
Caribbean or Cash
One large appliance sales company wanted to motivate their employees to sell more televisions. They announced
that the person selling the most would win a trip for two to the Caribbean. Sales went up and they thought the
program was a success. However a third party took a look at the results and saw that comparative sales were up
only for a small percentage of salespeople. Sales were flat for the balance. Further study showed that the sales
increases, when compared to competition, was actually a decrease. What was thought to be a success was really a
failure as the company lost market share.
The majority of their salespeople were not motivated by a trip because they could not afford the daycare for their
children while they were away. They obviously had no reason to want to win the contest. The next year they ran the
contest with an option to take the trip or have a cash bonus. They had much better results.
Even Better Results
As the historical surveys show, prizes and cash are not the way to connect individuals on a daily basis to corporate
objectives. Although they are good for big events, they are too expensive to connect employees to the
organizational vision daily. Employee assessments that show motivation, such as MaxImpact's Sales Perspective or
Profile XT, provide insight as to how to develop the best motivational and connective programs. Companies using
assessments learn the most cost effective ways to provide employee incentives.
Survey Results
Historically, employee preferences have not changed, neither has the incorrect management view.
what managers "think" they want
Managers are potentially offering the wrong incentives
Success is only possible when employees are connected to a common vision of the future of the
organization. Management typically develops incentive programs they feel will drive employee
behaviors to achieve their organizational goals. Typically these incentive programs are based on
management's perception of their employee's desires. However, research shows that management
has historically been out-of-touch with employee desires.
Managers mistakenly believe their employees have monetary motives and designed their incentive programs for
attaining goals and hitting company benchmarks to raises and bonuses. However, surveys dating back to 1946 have
consistently shown employees to be most motivated by shows of appreciation for their work (see chart below).
Caribbean or Cash
One large appliance sales company wanted to motivate their employees to sell more televisions. They announced
that the person selling the most would win a trip for two to the Caribbean. Sales went up and they thought the
program was a success. However a third party took a look at the results and saw that comparative sales were up
only for a small percentage of salespeople. Sales were flat for the balance. Further study showed that the sales
increases, when compared to competition, was actually a decrease. What was thought to be a success was really a
failure as the company lost market share.
The majority of their salespeople were not motivated by a trip because they could not afford the daycare for their
children while they were away. They obviously had no reason to want to win the contest. The next year they ran the
contest with an option to take the trip or have a cash bonus. They had much better results.
Even Better Results
As the historical surveys show, prizes and cash are not the way to connect individuals on a daily basis to corporate
objectives. Although they are good for big events, they are too expensive to connect employees to the
organizational vision daily. Employee assessments that show motivation, such as MaxImpact's Sales Perspective or
Profile XT, provide insight as to how to develop the best motivational and connective programs. Companies using
assessments learn the most cost effective ways to provide employee incentives.
Survey Results
Historically, employee preferences have not changed, neither has the incorrect management view.
| What Employees Want vs What Managers "Think" They Want |
|
Sources: Foreman Facts, Labor Relations Institute of NY (1946); Lawrence Lindahl, Personnel Magazine
(1949). Repeated with similar results: Ken Kovach (1980); Valerie Wilson, Achievers International (1988),
Bob Nelson, Blanchard Training & Development (1991), Sheryl & Don Grimme, GHR Training Solutions
(1997-2001)
(1949). Repeated with similar results: Ken Kovach (1980); Valerie Wilson, Achievers International (1988),
Bob Nelson, Blanchard Training & Development (1991), Sheryl & Don Grimme, GHR Training Solutions
(1997-2001)
Although the survey takes snapshots at various point in time, the collective historical value remains the same:
Management does not understand what it takes to motivate their people. On the contrary, High Performance
leaders understand the value of assessing their people so that they know their people better than their people know
themselves.
Contact MaxImpact at 248-802-6138 to learn more about assessments.
© 2006 Max Impact Corporation, Rochester Hills, Michigan, USA. All rights reserved.
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| February 24 2008 |