You are on page 1of 4

EXECUTIVE WHITE PA P E R

A new study on employee motivation and performance lays the


groundwork for creation of the SITE Foundation Motivation Index Y.

MOTIVATIONIn The Hospitality Industry


n Introduction
n About the Research
n The CANE Model
n Implications for Employers
n About the Researchers
n Where to Get the Study

INTRODUCTION

E
mployee turnover within the U.S.
fast-food and hotel industries
costs those industries in the
neighborhood of $140 billion annually. In
more bite-sized terms, it will cost rough-
ly 100% to 200% of an employee’s base
salar y to recruit and train a replacement.
Although the turnover rate for these
industries hovers between 78.3 percent
and 95.4 percent on a national basis, the same economies, the same chains, the managers can use to reduce turnover in
some fast-food restaurants and hotels same cities, and the same regions. All their fast-food or hotel operations.
experience much lower rates, and have things being equal, then, what accounts
significantly greater success retaining for the differences in turnover rates? And About The Research
employees. Overall, higher levels of more importantly, what can managers do Hotel and fast-food employees from
motivation and motivated performance to reduce turnover at their properties? twenty-two job sites located in the Orlando,
translate into a 53 percent reduction in The Site Foundation is seeking to Florida area were surveyed in October
worker turnover. answer those questions by studying
It is generally understood that employ- employee motivation and performance in
ment in these industries is often consid- the fast- food and hotel industries. The
ered to be temporar y, or stop-gap study - Motivation in the Hospitality
employment, with workers leaving even- Industry - measures key indices of moti-
Published by: The SITE Foundation
tually for what they will consider “green- vated behavior using the widely recog- Copyright 2004. All Rights Reser ved.
er pastures.” And certainly, different nized CANE (Commitment And This paper is an edited version of a full
report by the same name written by Steven
economics are at work depending on the Necessary Effort) Model of Motivation. J. Condly, Ph.D., Educational Studies Dept.,
College of Education, University of Central
region, the type of establishment, etc. The following describes key findings from Florida, and Robin DiPietro, Ph.D., Rosen
School of Hospitality Management,
However, turnover rates also vary within research to date and offers methods University of Central Florida.
EXECUTIVE WHITE PA P E R

Employment in these industries is often


considered to be temporary, or stop-gap employment,
with workers leaving eventually.

2003. All told, 545 responses were people are motivated to perform a
received. Mid-scale hotels contributed specific task. IMPLICATIONS FOR
14.9 percent of the responses; fast-food EMPLOYERS
restaurants contributed 85.1 percent. A The CANE Model Simply put, the study demonstrates that
follow-up phase conducted in February The following chart illustrates the certain behaviors have various impacts
2004 surveyed the same job sites. dynamics at work in the CANE Model. It on turnover in various ways, and these
The survey instrument was modeled is followed by an explanation of the ten differences suggest strategies employers
after the CANE Model (Richard Clark, predictor variables and questions in which might use to reduce turnover. These
1998). The CANE Model helps us to the employee might express the effect of include:
understand the various aspects of why the variable on his or her behavior. n Turnover is less when employees
have a high level of value for their work.
These employees persist more than col-
leagues who report low levels of value.
Employers can help employees value
(Commitment And Necessary Effort) their work through consistent praise,
recognition, and special incentives.
n Turnover is less at work sites where
employees feel supported by the organi-
Perceptions of Capability Affect Task Value Goal Commitment
zation. Organizations can increase the
Self-Efficacy x Emotion x Importance g Choice level of support their employees feel by
listening more, understanding employee
Agency Mood Interest Persistence
Utility issues, and taking action accordingly.
n Employees who feel better about
Self-Efficacy g Effort their jobs persist more, exert more
effort, and are less likely to leave.

2
EXECUTIVE WHITE PA P E R
n Older employees tend to be more
THE CANE MODEL motivated, persistent, exert a greater
effort, and are less likely to leave in the
Ten predictor variables identified by the CANE Model guided the investigation of the
face of difficulties.
hospitality industry. These included: self-efficacy, agency, emotion, mood, importance,
n Salaried employees are more moti-
interest, utility, choice, persistence, and effort.
vated than hourly employees.
n Women are more likely to say their
Self-Efficacy The belief that one can organize and n Can I Do This?
work is more interesting, more impor-
execute courses of action to obtain n Do I Have What It Takes?
tant, and more useful; however, turnover
desired goals (Bandura, 1997).
for women is higher than men.
n Will I Be Permitted To Do n When employees feel they cannot
Agency The belief that you will be supported
in doing a task or allowed to perform This and Be Supported? perform certain tasks, managers should
the task in accordance with your n Can I Do This Under These reduce the size of complexity of the task
goals. Circumstances/Conditions? into smaller “chunks.” This helps the
employee to build self-efficacy.
Emotion Negative emotions produce avoidance n How Do I Feel About This n Employees who perceive their work
behaviors (tardiness, inattentiveness, Task Or Job? conditions to be unfair and/or unreliable
job abandonment); positive emotions need evidence that the system is there to
energize (choosing a task, staying help them be effective. If negative per-
longer on a task, etc.) ceptions are cor rect, management should
rectify them.
Mood Moods bias people’s thoughts, not n How Am I Feeling In
their actions. General? Conclusion: When tasks are being
avoided or devalued, a carefully targeted
Importance People tend to commit to tasks when n Is This Task “Me”? incentive system can solve the problem
they identify with the task. in both the short- and long-terms.

Interest People can commit themselves to n Do I Like This?


tasks even when the only thing they
About the Researchers
get out of it is pleasure from doing This summary of a SITE study is an edit-
the task. ed version of a full report by the same
name written by Steven J. Condly, Ph.D.,
Utility Willingness to perform A to secure B. n What’s In It For Me? Educational Studies Dept., College of
Task utility is often the most powerful Education, University of Central Florida,
motivator. If the answer to the ques- and Robin DiPietro, Ph.D., Rosen School
tion at the right is “nothing,” people of Hospitality Management, University of
are unlikely to commit to the task. Central Florida.

Choice Buy-in or the first step. This is that n Do I Agree With This?
actual goal that people have selected; WHERE TO GET
it differs from intention in that it THE STUDY
involves some sort of action or
response and not mere thought or For copies, contact
words (Kuhl, 1986). The SITE Foundation:
Frank J. Katusak, Executive
Persistence Continued choice in the face of obsta- n Can I Continue To Do Director
cles. When people persist, they gen- This? 304 Park Avenue South
erally succeed.
11th Floor
An energy-based behavior involving n Is It Worth The Effort?
New York, NY 10010
Effort 212-590-2518
actual thinking rather than rote per-
formance. When people exert effort, f.katusak@sitefoundation.org;
they increase the likelihood of suc- www.sitefoundation.org
ceeding in a task. <http://www.sitefoundation.org>

3
WE’VE COME A LONG WAY
SINCE THE CARROT
Give Sales Force Motivation the Attention it Deserves
m Improve sales representa- m Improve team field force per-
tive performance an average of formance by up to 45% with a
22% with a carefully designed, properly structured incentive
implemented and monitored program
incentive program
m Ninety-two percent of sales
m Quota-based incentive pro- representatives surveyed indi-
grams are proven to yield the cated they achieved their goals
greatest results because of incentive programs

Your Program Costs Can Be Based on


Results and Payable Upon Success
n
Research Shows Why Certain Incentive Programs
Work While Others Don’t

Get a free summary of the research, “Incentives, Motivation and Workplace Performance: Research &
Best Practices,” conducted by the International Society of Performance Improvement, 2002. Contact
Frank Katusak at 212-590-2518 or f.katusak@sitefoundation.org. The complete study is available for $50.