CHAPTER 11 UNDERST 10t

ANDING ENGAGEMENT I MOTIVATION AND RETENT

d!tM½HiH+I
Erigagernen~ pays
ds like Baileys, Bunda berg Rum, Guinness J . .
Bran I d'1ng premium drinks prod F ' ohnnie Walker and Smirnoff have made Diageo the
id's ea ucer. our of th e company,s five values are closely l1nke ..
. d to driving
wor .
agement.
eng
Be the best
• Freedom to succeed
• Proud of what we do
• Value each other.
• D.ia geo measures. .employee engageme nt th roug h six • 9uestions in its annual employee survey.
. . the most pos1t1ve response to all si x 9uest1·ons Iabels an employee as super-engaged, the
Giving . .
s f h • · d
!eveIthe company
. .1s targeting. Quarterly urveys o t ree or four 9uestions on topical issues aroun
measure progress bYfram1ng . .1n terms of whether they,re doing
· t he 9uest1ons ·
ernp IOYee sat1sfact1on
better compared to a year ago.
Th e phrase 'Know.me ' focus . on me and va Iue me, gu1·des leader-managers, conversati·ons wit· h
· · and development pIans. Th e
· career asp1rat1ons
and d'1scuss1ng
ernp loyees when . setting ob1ectives
J

senior leader~hip t~am has a monthly agenda item on employee engagement and the team holds
regular meetings wi th groups of 20-25 employees so they can ask 9uestions and say what's on their
minds.
Results have been impr~ssive . The percentage of super-engaged employees doubled from
25 per cent t~ 50 per cent 1n thre_e years and voluntary turnover dropped from 18.4 per cent to
6
13.5 per cent 1n 12 months, prov1d1ng a measurable saving in recruitment costs.

Three foundations of engagement

Engagement is rational as well as emotional. It revolves around commitment to your:
• day-to-day work
• direct leader-manager
• organisation
• work team and colleagues.
Organisations can invite engagement in three areas, which you can think of as the three Cs oJ
engagement: connection, contribution and credibility.
I

' Connection.
Understanding aii<:l.--relafing to your organisation's goals and vision, and how your work contributes to
them, combined with a sense of community and camaraderie within the organisation, creates bond5
between employees and their organisation. Keeping employees informed about what is happening in
the organisation, as well as seeking their ideas for improvement through effective upward feedback
channels, deepens the connection between employees and the organisation. Employees need to feel
trusted and respected as individuals, so discussing their interests outside work, as well as their work
goals and career aspirations, increases the connection still further.
 PART 3 LEADING AND MANAGING OTHERS

@ IN PRACTICE
any s h
ares and car

agem ent afte r dea th dry services , corn P I ays the part ner
Eng I ge pt the dec ease d
Free gourmet food, fitness classes and hairc uts, ,aun rked ther e, Goocess o
I you ve wo if the
washes - what next ? Regardles s o f how o~g F 1o year s plus ac 19 (or 23
th e1r salarOyOor onth until they turn .d a pow erfu l
or spouse of a deceased employee half am d prov1 e
hI.ld ren US$10 d ·ve eng agem ent an .
17
c hin to do.
employee's shar es, and pays the t g
child is a full-time student) . Alth ough that muS .n h b ause 'it's the right t
. ' k. h. pproac ec
incentive to stay, Google says 1t s ta ,ng t is a

thei r stre ngth s. And thos,e

Contribution . . . bs - jobs that use
the orga
. .
msa twn s
t JO trib utes to
The right employees need to be placed. m the ngh . f 1 wor k that con h .
desi gned and prov ide mea ning u d f them and that t ey rece ive an
jobs mus t be well 0
to know prec isely wha t is expe ~te . ( d the bes t perf orm ers don't
perf orm ance . Peop le need h · tnbu t10n an
. . . g to do thei r jobs wel l and to
of rewa rds and reco gnit1 0n for t elf con
appropriate level l and tram m
s, too s . c hi'gh perf orm ers to see poo r
work just for money). People also need the resource ·t' f ustr atm g ior
use I s r
know that poo r performance is addressed, beca
aths a cha nce to lear n
performance ignored (and even rewarded). . . . . h • les clea r care er Pb 'Id, eng age men t
t elf ro '
For many employees, autonomy and flexibility m . d k wled ge a1so UI ·
ski 11 s an no
and grow in thei r job, and opportunities to develop

Credibility · gn·t Y as wor thy of thei r com mit men t

· n £or mte
· · a reputat10
Employees regard orga nisations that have e
cont ribu tion , and corp orat e soci al resp onsi bility, emp loye r bra nd and emp loye r valu
and
ents of enga gem ent.
proposition are increasingly seen as imp orta nt elem to
orta nt. You can sho w you are com mit ted
Employees' dire ct leader-managers are also imp
trib utio ns. You can
I the orga nisa tion and acknowle
dge and appreciate employees' effo rts and con
,
actions. You can han dle diff icul t situ atio ns well
dem onst rate your hon esty and integrity with your n
com mitm ent, trea t emp loye es as indi vidu als and show loya lty to you r wor k team . Eve n whe
inspire earn s
be hon est - th is stop s the r u mou r mil l and
the news is not good, employees expect you to
employe es' trust. er,
ions , between 1:mplo;·ces, thei r lead er-m anag
Wh en coun tless mom ents of trut h, or interact '
; ,- ❖ ,·in ~·cal ly rew ard 1ng
i . , , 1 ,. , , 1:-:1
itself add u1o tc"1 ..'.:)') work
othe r leader-managers and the or0aanisation
resp ecte d and valued • I11 r· J11· v.:: e.,...11•v-:ron men t employe es b ond
experien ce, emp loye es feel appr ecia ted, 1

their ability. '

with the orga nisa tion and perform to the best of
 Engaged
employees

Satisfied, but not

•e
engaged employees

Actively
disengaged
employees

FIGURE 11.1 Levels of engagement

Good news
·
In Australia and New Zealand, 24 per cent of employees are engaged while 60 per cent are not engaged
and 16 per cent actively disengaged. The resulting ratio of engaged to actively disengag ed employees, l.S:l,
is one of the highest among all global regions and similar to results from the USA and Canada (1.6:1).
Australia is among the global leaders in the ratio of motivated and productive (engaged) employe es verSus
the negative and disruptive (actively disengaged) employees in its workplaces.
Most of our employees (60 per cent) fall into the 'satisfied but not engaged ' category , meaning
they lack the psychological commitm ent to maximise their efforts on behalf of their organisa tions.
Here's how we can raise our engagement levels:
• align the organisation's leaders to its values and vision
• align every employee's role with the organisation's mission
• monitor employees' psychological safety.11
You probably know which is the most sought-after employer - Googl.e. Another highly sought-
after employer is NetApp, a US multinational storage and data managem ent compan y. In an industry
where continual forward movement is mandatory, engaged employees are a must. To find out how this
company. engages. its Australia n employees (without the beanbags, death b ene fit s an d free gourmet
cafeteria) , go onlme to CourseMate Express and read the short case st d 'A .
u y, n engaging culture.,

How to be an engaging leader-manager

Engaging leader-managers share many character istics But h . .
one of them. Some are energetic extroverts othe h. d
per aps surpnsm
.
gl 1· .
Y, persona 1ty 1s not
' rs s y an quiet· some . .
practical and still others intellectual. Their behaviour tow d th . ' are creative, others highly
. ar s
, Engagmg leader-managers are described as protectors st cl£ e1rteams ' h owever, is . .
,
environments and willing to stick their necks out. They listenea ast, able toke 1 .
very consisten t.
I t0 ep ca mm busy and confusing
, them. They re approachable, honest and open, supportive and emp1oyees
' , valu th
, . ' e em as people and involve
encouraging a d th
. n ey develop people's skills
 - · ·• -•-.1,1v1 v11V/-'\I IVl'I /-'\1'4U f'\L-1'- 1 1
"' -· ·

d 'keep things interesting'. The qu .

a.ri 1
chapter · Unders
10· tanding l d a ity their relatio h·
. . ea ership, for of m b .
ns ips with employees invites engagement. (See
and Chapt~r S: Bmldmg effective working re::~oa o~t the pivotal nature of effective workin
g relationships
Engaging leader-managers are d nships, to find out how to build them.)
.
0O struct1ve and correc tive . goo
feedback . two-waY communicator .
s and give frequent positiv ..
c . Ch t 15· p e,
5.3 in ap er · rov1'd•mg formal a ' dusing . an enc ouragm . .
g, informal, coaching style (see Section
1 ·
ection 29•2 m · Ch
apter 29: Encou rag· n informal per ~ormanc . ce for more on
e guidan
S • mg a learnin • feedback and
espect an d ta ke an interes t in people a . d' . g environment and developing employees). They
\ne they have high standa rds set cl s m ividuals and develop and nurture their
ti ' ' ear goals and skills. At the same
I,q
uickly, firmly and fairly. When they n d
their teams, per £orman ce, they do so w·th
expectations, and address performance problems
ee to resort to d1· · l ·
1 sm1ssa m order to protect their team and
/ Engaging leader-managers see th b. e~pathY and follow the correct procedures.
TheY motivate employees and give the ig picture and t ake ·immed"1ate action when
\ em when em autonomy wh.11 plans go wrong.
necess ary. When empl k' . l h
e ma mg it c ear t ey are there to support
I th
hand them a solution on a plate. oyees need help' they gut.de t hem to solve problem
s, rather than
: Engaging leader-managers build
1downs' and help each other out. Th strong teams where members work well together, 'share ups and
he team as a whole and ey a_re clear about the contribution of individual team members
to t presen t their team · · • 1·
. ply chain They e . m a positiv e 1ght to the rest of the organisation and
its sup · ncourage ideas and •
workflow and work metho ds. suggestions and are willing to make changes to improve
Engaging leader -mana gers let te
.a am memb ers work to their streng ths and let them be themselves,
not a d1Uerent person at work than th
. . ey are at h ome. When you work to your streng ths, you can
be more invest ed m your work and
, wh en you don,t have to preten d to be somet hing you're not,
oure free to engage more freely w·th
Y i your work team. (For · more on workin • g to your streng
ths
see Section 5.5 in Chapt er 5· Streng th · .
· emng your persona1skills and for more on feeling . able to be'
yourself, see Chapt er 32: Movin g from diversity to inclusion.)
Here are some other behaviours that engaging leader-managers share. They:
• agree clear goals
, • allocate resour ces fairly
• encourage work- life balanc e
• engage in fair and open decision-making
• · provide employees with development and learning opport unities
•. provide leader ship people can respect
provide worth while, meani ngful work that fits into the organisation's and
employees' value
systems and that m atches employees' skills, streng ths and interes ts.
\ Disorganised, egotist ical, pessim istic micromanagers all need to learn to change
their ways. But
there is hope for them. Engag ing manag ers aren't engaging from their first appoin
tment. Their ability
to engage employees grows over time, along with their confidence and self-aw
arenes s (as discussed
in Chapter 5: Streng thenin g your person al skills).12
You can find out how Lisa Paul, head of the Comm onwea lth Depar tment
of Educa tion and
Training from 2004 to 2016, engag ed emplo yees - despit e signifi cant budge
t cuts, with a clear
strategic direct ion and by genuin ely caring about them. And if you wear specta
cles or sungla sses,
you've probab ly been to Bright Eyes, Budge t Eyewear, Laubm an & Pank,
OPSM or Sungla ss
Hut. To learn how their owner, global Italian eyewe ar firm Luxot tica, raised its
low moral e and
engagement by 15 per cent, impro ved its retent ion by 8 per cent and lowere
d its recrui tment
costs by 30 per cent in just 18 month s, go online to Cours eMate Expre ss
and read the short case
study, 'A surpri singly quick fix'.
 . ., . nd on
' hat motiv ates. .
W
I I often have pet theories about what motivates other people, based on their expene nce a
'lazines s
' d
an
peoP e otivates them. Three .of the most commo n explana tions of motivat ion are 'fear',
1-.at rn
, Do these rea 11 y motivat e people? Let's see.
I 'fl'loneY ·
w11
I
F ar7
e . •book, Who Killed Channe l 9?, foundin g executive produce r of Channe l 9's 60 Minutes , Gerald
In ti1s wrote of the I ate me d"ta owner, Kerry Packer's manage ment style:
. .
\ stone, .
d of in himself.
Packer ... occasion ally referred to a sad flaw in his characte r, a trait he was ashame
'I don't know any other way to manage people than through fear .. .'.15
a fire und~r
Is fear a good motivat or? Threats of losing your job or being reprima nded may light
lly true m
ou for a while, but gener~lly the effect doesn't last long or work very well. This is especia
Y where jobs are plentifu l. . . .
areas .. . . negativ e
The positive motivat ion of gaming someth ing you want works better than the
ber these
motivation of fear and threats. If you're tempted to motivat e through fear, remem
sequences: . h
co n . ancient fig t ,
• fear sets off an automa tic adrenal in respons e in the body that triggers the
flight or freeze respon se - employ ees instinct ively want to hit manage rs
who manage
lest they do
through fear, run from them, or do nothing (or at least as little as possible ),
somethi ng else 'wrong' .
• fear loses its power as people become accusto med to the threats.
work.
• To motivate employ ees by fear, you must supervi se them often and closely; it's hard

Laziness?
saying is often
There are no unmoti vated people, only unmoti vated employ ees. This popula: r
many anglers
true. Have you ever watche d people rushing off home at the end of their shift? How
you know skiers
do you know who leap out of bed at 3 a.m. to go on a fishing trip? Or perhap s
1

ating the run

who are happy standin g in freezing temper atures waiting for the chair lift, anticip
ing they want
down the mounta in? People are motiva ted to do things when they receive someth
in return.
Neithe r
Most people a ren't inheren tly lazy. You probabl y don't like being letharg ic and bored.
jobs and feel
do most employe es. People welcom e leader-m anagers who can help them enjoy their
vated employ ees
\ satisfied doing them. So you don't have to worry about transfo rming lazy, unmoti
s into desirab le
I into industriuus 'workah olics'. You just need to channe l their existing energie
work perform ance.

Your brain;- , eward networ k

/ By mapping the human brain with advance d t ec hnol ogy suc h as fun c ti ona l magnet ic resonan ce
found a number of
imaging (fMRI) and using advance d statistic al techniq u es, neurosc ientists have
16
of them, the reward
brain network s and subnetw orks that guide our percep tion s a nd behavio ur. One
I network, activate s in respons e to enjoyme nt. What ha s th at to do with motivat ion? Plenty.
r What motivates?
11
CHAPTER UNDERSTANDING ENGAGEMENT, MOTIVATION AND RETENTION
297

1
peoPIe Often
.
•
have pet theories about what mo t·1vates other people, based on their experience and on
what motivates th em. Three of the most common explanations of motivation are 'fear', 'laziness' and
I ·money'. Do these really motivate people? Let's see.

Fear?
In his book, Who Killed Channel 9?, founding executive producer of Channel 9's 60 Minutes, Gerald
\ Stone, wrote of the late media owner, Kerry Packer's management style:
Packer ... occasionally referred to a sad flaw in his character a trait he was ashamed of in himself.
/ 'I don't know any ~ther way to manage people than throu~h fear ...'.1s
Is fear a ~ood motivator? Threats of losing your job or being reprimanded may light a fire under
you for a while, but generally the effect doesn't last long or work very well. This is especially true in
areas where jobs are plentiful.
The positive motivation of gaining something you want works better than the negative
1

motivation of fear and threats. If you're tempted to motivate through fear, remember these
I consequences:
I • Fear sets off an automatic adrenalin response in the body that triggers the ancient fight,
flight or freeze response - employees instinctively want to hit managers who manage
through fear, run from them, or do nothing (or at least as little as possible), lest they do
something else 'wrong'.
. Fear loses its power as people become accustomed to the threats.
I • To motivate employees by fear, you must supervise them often and closely; it's hard work.

Laziness?
There are no unmotivat-::d people, only unmotivated employees. This popular saying is often
true. Have you ever ,-va t.·: \· ,,: I-'~:,)ple rushing off home at the end of their shift? How many anglers
do you know who leap (1 , ' ; ; :.,_.d at 3 a.m. to go on a fishing trip? Or perhaps you know skiers
who are happy standing ::·. ,. : 1.:,.:t.ing temperatures waiting for the chair lift, anticipating the run
down the mountain? People are motivated to do things when they receive something they want
in return.
I Most people aren't inherently lazy. You probably don't like being lethargic and bored. Neither
do most employees. People welcome leader-managers who can help them enjoy their jobs and feel
satisfied doing them. So you don't have to worry about transforming lazy, unmotivated employees
into industrious 'workaholics'. You just need to channel their existing energies into desirable
\
work performance.

Your brain's reward network

_By mapping the human brain with advanced technology such as fu~cti~nal magnetic resonance
imaging (fMRI) and using advanced statistical techni9ues, neurosc1ent1sts have found a number of
16
brain networks and subnetworks that guide our perceptions and behaviour. One of them, the reword
network, activates in response to enjoyment. What has that to do with motivation? Plenty.

•••
298 PART 3 LEADING AND MANAGING OTHERS
d they cost less.) Here
better. (An
ften even
s, 0 . t treating Ipeopl e
• • • . II materialt"one . . -rnak1ng, no d. d.
Immaterial rewards work JUSt as we as to mo ivate·· · n·• an inc u 1ng
c • d n use . d transparen t dec1s1d.ong inforrnatio '
are a rew non-matena1rewar s you ca l ,n
. n not withho
• A culture of fairness such as equitable, fair an_ b curios·tI Y
' mmun1catio ' •fie that t hey cur
differently for no clear reason ; open co
not excluding people . h for but not so spe c' f Chap ter 19:d.Increasing
.Ii enough to reac · 19 1o .
• Goals and targets that are spec,. c . onJo . b ose in Section c· h ter 13: Bu1I 1ng
purp
. Section •
13 2 of ap
and flexible thinking (see the d1scussion . b
.. d t am purpose ,n h discussion on JO
performance and product1v1ty, an e
productive work teams). . . resting problerns (see t e
a ing a learning
• Intrinsically interesting work, such as solving ,nte
design in Section 19.1). . . f Chapter 29: Encour g
291 0
• The opportunity to learn (discussed in Section ·
environment and developing employees).
l • Social approval (discussed below).

d logical. Empl oyees calculate

Money? · is mind ful an . · fi th ·
they receiv e m retur n or e1r
Economic rationalists tell us that huma n behaviour much mone y ruled by thelf · h eart s as much
how much effort to put into a job based on how
. that peop1e are
efforts. It sound s sensible, but then agam, we know
fi rman ce, can work . But that's
as their heads. . 1. for per
f s or pay blue-collar o bl"
jobs followed esta 1.shed
For repetitive or routine jobs, ~nanc1a mcen ive ' . _ and
th . h. d becau se these jobs are pretty
mostly old economy, 20th-century Jobs, where bo white d wh1c 1s goo , with exter nal rewar ds and
. them
steps. These jobs are now often automated or outsource ' .
dull and unsatisfying. That's why you have to coax peopl e mto domgd t· k' Even when mone y boosts
O 'carro•t and s IC
Id
d ·
h d th oney is in your hand
threa ten them with external punishment - t e goo 1 · achieve an e m '
productivity in those monotonous tasks, once t he goa is
productivity tends to fall.

Carrot-and-stic k motiv ation

You've no doubt heard the term carrot-and-stick motivation.
o'
This comb inat·;c_;r, !--~ar and mone y
belief. :nfoct , :-/ •· , ·.•:..·,o:-ite is actually
motivation is anoth er common and persistent, but erroneous,
but only in th() :;; ,..~, ; ,2rrn and ultimately,
true. Offering reward s may occasionally increa se motivation,
e's sense of t,. , r., ·, ,:·ny. It's much more
they reduce motiva tion, perhaps because they undermine peopl
well for its oHn :;d:.•.:.
effective to conce ntrate on internal motivation -· doing ajob

calling for creati ve and emotional

Most jobs in Australia today are knowledge and service jobs
disincentivise, or reduc e perfo rman ce.
work and brain power. Financial incentives can actually
becau se each situat ion is different
Heuristic tasks, where you have to work out what to do each time
urced and, becau se they'r e gener ally more
and calls for a no~el ~olution, can't ~e a_ut~mate~ or outso
enjoyable and sat1sfymg, they need mtrms1c motivation.
c l
Not convinced? Study after study shows that money does not mot·1vat e, at 1east not 1or ong.
. . more in order t . k. .
, People will forgo movmg to a Job that pays substantially o rema m wor mg m a p1ace
1

J
r where th ey en jo y th e
CHAPTER 11 U NDERs

wo rk an d ca n
TANDING

d deve1op the·
ENGAGEMEN T, MOTIVATION AND RETENT

•
ION
299

ua l re sp ec t use an d wo rk with others in

an at m os ph er e of m ut Ir skills and talents an

I
/ Na
I
er
. 1h in k ab ou t it: Your
fo rm an ce an

five weeks. H owever,

d
d be

.
m an ag er .walk
ca us e we th in
P turally you wo ul d be pl ea se d an d pyouhre
,
. k s up, to you and says 'M f . nd, in recogn ition of your excellent

1f you'r e lik m os t p
e
ke th em fi
er
eo
ap
p I
a terrific p , n y wne h
s,
e,
in
yo
gr at
u wo
it
ul
erso ' e ave d ec1d
d h
.
ed to double your pa ·
u e, wokrk r eaII y ard for three, four or ev
d .
your increased
y,
en

earning
.
s an co m e to ta
. Th ey wo ldqhu 1c ly learn how to spend
gr an ted .
em m ig ht m ot 'ivateor . u t en cease tO mo tivate you (although the
I fear of lo sin g th you ti a lit tle wh ile I
. . of or anger).
Money 1s im po rta nt , co ur se _ eo .
le is w p . pi e ne ed to pay their bills But as explamed later in this
m os t pe op g· f; ·
, chapter, m on ey for l an d se c . ha t Is known as a hy tene actor that h eJps satis ·
fy their lower
ys io lo gi ca Th f
I order, or ph un ty need s. ere are except 10 ·
ns, o co ur se s I go
to work ju st fo r th
e m on ey Th ey m ay n d • . · ome peop e really do
;i1 0u sly choose ~ hig
· ee It badly or th ey m
in g jo b fi h-paying but
not necessarily sa tis fy
psychological, hi gh er
or de r ne:; so m e ot he r re as on . Fo r ex a! p~ :n
O t~y may be gettm g most of their

give th ei r ch ild re n a go od lif e ~md et away fro m th e wo rk pla ce

· r ey may wa nt to earn money to
. th fi an e uc ate th em
• . 'd to
m of a b on us, pe rfo rm a 1·t · I 1
Money (m e or ne e in ce nt ive or pay rise), when 1s c ear y pa1
o pe r fior m an ce' ca
n m ot ·1vate. In thi oney itself that
rewar . d go d s _c~s e, th ou gh , it isn't so much the m
r
w ha t it sy m bo lis es - ecognit1on of good performance.
motivates bu t ra th er

ffil IN BRIEF
iv at e
Using m on ey to m ot . . t reward s in
de th ei r ti·m e c:ro r m on ey ·' th e ' re mo re int er es ted ,n work tha
t
People no lo ng er tra el es s pa y- n I d . yees,
oth er ways. Ne ve rth ,
1
or - pe rrn, rm an ce inc en tives can he P att ra ct an ret ain. emplo
. ( b 'd 1· c:
mo ne tary
. th a 'drive to ac qui re se e e low) · He re are some gu, e mes ,or using
particu larly th os e wi
. . :
1nc en t1ve s to m ot iv ate en su re th at
ee n th e em I ee s, ta rgets and th e organ isa tio n's goals to
lin k be tw . P oy
• th Estab b ar fi h
ffih rta cle
. lis ation .
e e nt ire or ga nis ts.
eir e_ 0 s en e t t, , easily measured targe
de nv ind ing , bu t no t impossible - to -a tta in t.
,on pa c kage so
d un era
• Establ'.sh cle ~r an r ce nt to 15 pe r
t I
ce nt on top of th e to a rem
t o :::<',--, l C• pe , .
• M ak e it po ssible ,.
:; ,•1orthwn ile. nsfer
t hat t h e ex tra e fh::,r•~ ym en ts as a wa y to tra
a hig h ba se pa y - don't use inc entive pa
i,; ..~, .' .-, t_..-,p of
• Pla ~e th e _in ce n~
,.-\.,;o/ c:rnp ioyees. th e degree of diffic ult
y of a task.
busines s nsk t o 1,,c:r·.· nc e to ac co mm od ate
• Rewa rd ef fo rt as
.,.,.,~!i cl:. pe ,fo rrna

ndamenta l attribu tion

m ot iva te pe ople is known as a fu
ne ss an d m on ey sit ua tiona l
Saying th at fe ar, la zi rs do wn to so m eo ne 's pe rsonality, ignor ing
ou
pu t observ ed behavi say of som eo ne who is
not motiva ted
error, or th e te nd en cy to e yo u're te m pt ed to
be ha vi ou r. So ne xt tim th e sit uation may be
explanations for th e ha t's ju st ho w th ey ar e', co nsider what in
d m ot iv ated ), 'T
(or who is en ga ge d an
bet it's the
ha vi ou r: If m os t ot he rs be ha ve simila rly, yo u ca n
causing th e be ha ve in th at sit uatio
n?
• How do ot he rs be havio ur.
n, no t pe rs on al ity , th at 's dr iv ing the be
situatio uc tu re or
ul d yo u be ha ve in th at sit uation? , like group dynamics , the incent ive str
• How wo ur
us es of th e be havio sing perform ance an
d productivity
Look for hi dden ca Ch ap ter 19 : In cr ea
. (Sec tio n 19.l in
unchallen gi ng wo rk
es to look for.)
describ es ot her ca us
30Q
PART 3 LE
ADING AND MANAGING OTHERS

0
C.. THE BIG PICTURE
Extrinsic ve... · · • motivation
• .. u s 1ntnns1c . .
! ~ad itional management practice is based on a set of princ iples, many of whose origins date bac k
ore than 100 years : hierarchy, planning and co ntrol , spec ialisation , standard1sat1on and using
ex_temal , or e xtrinsic, reward s to motiva te. G e ne rations of manage rs have mined th ese
principles and many seem to ha ve reac he d their natural end with the end of th e
industrial economy.
Whe_n yo_u 're tempted to bribe pe ople to be productive, consider:
• Wikipedia, the world 's largest encyclopae dia, written by volunteers. . ..
• Habitat for Humanity, a not-for-profit organisation that builds homes for low - income famili es
around the world , through volunteer labour and donations.
Linu x, the operating system voluntarily coded by once-upon-a-time hackers. .
. All three are e xamples of non-hierarchical c ommunities of self-managed volunteers working
wi th0 ut job descriptions for internal or intrinsic rewards such as a sense of shared purpose a nd
emotional satisfaction. ' '
In the long run , fear and force are outdated and unsuccessful motivators. Other motivation
methods that may have worked in the past, particularly money and competition , are also less effective
than they once were for most employees.

Climate, culture and content!

1 Since laziness isn't a widespread problem and the carrot and stick don't motivate, what does? We've
looked at the three Cs of engagement (connection, contribution and credibility). There are also three
Cs of motivation: climate, culture and content. Research consistently identi fi es these intangible
1
factors as much more effective ways to motivate people. They are the h igher order, psychological
needs that we discuss below.
That doesn't mean motivation is simple, though - hence the leader-rn ~;-,"-F;·.o'·s' lament: 'People
can be a source of joy or an absolute misery.' Motivating others is one of t I··.· • , c -fc:;t challenges that
leader-managers face.
Sections 4.2 and 4 .3 in Chapter 4: The informal organisation exain, ;:.: ,. ,r;1ate and culture.
Job content is the third important piece of the motivation puzzle. Monoto,),_,,_,,;, boring jobs drain
interest and motivation and are a source of stress. Even when the surroundings and co-workers
are congenial, dull jobs can cause problems. Humans, like most living things - even amoebas -
constantly seek stimulation, and when they aren't stimulated, they can fall into repetitive, harmful
patterns of behaviour.
Environmental stimulation and job challenge fine-tune the brain, which is why job rotation and
good job design increase job satisfaction and motivation as well as productivity. Job design refers to
a job's content, or its specific duties, accountabilities and tasks. Well-designed jobs give employees
autonomy, responsibility and the chance to work in teams. They provide variety, interest and challenge
as well as opportunities to learn and grow, use skills and contribute ideas. Job placement _ putting
the right person in the right job - is also important in motivating people, as we see below. (The Want
to key in Section 19.1 of Chapter 19: Increasing performance and productivity explains job design
and job placement.)
r CHAPTER 11 UNDERSTANDING ENGAGEMENT, MOTIVATION AND RETENTION
301

-Hopeless and futile lab~ur .

Do you know th e st0 ry 0'. Sisyphus·7 The gods condemned him to ceaseless effort rolling a rock up
to the top of_ th e mountain, from where it would fall back down. They believed that there is no more
dreadful punishment than hopeless and futile labour.
The founder of cy?ernetics, Norbert Wiener summed it up when he said, 'If the human being is
condemned and reSt n~ted to perform the same functions over and over again, he will not even be a
good ant, not to mention a good human being.'17

What do people need to be motivated?

To 'light the fire within', you need to find the answers to these three questions:
1 What does this person need to live a happy and satisfied life?
2 What does this person need from their work?
3 What happens when this person's needs are not met?

Values, beliefs and needs

Values, beliefs and needs are powerful motivators for most people. Values express what a person
holds dear and believes is right and wrong, good and bad, important and unimportant. Each person's
values and belief systems - about themselves, others and the world around them - are unique to that
person, based on their upbringing and life experiences.
Although we're all different, we are also alike in many ways. Everyone shares the same basic
eeds (in different strengths and combinations) and these needs combine with people's values and
eliefs to motivate and guide their behaviour. Figure 11.2 gives some examples.

§I IN BRIE~:.;j)
How needs drive beh,::iviour
An action is the basic •.: r:·:. J behaviour. When you feel hungry, you are motivated to eat. You might
go out and buy some r ,- i lo- ,; quick snack, you might cook a big meal, you might even go out and
steal some food if you •. ·.·· •.' •'. dngry enough. Sometimes consciously, but usually unconsciously,
you do what seems rri: :-. ' .. L ,;1 to provide what you want with the most positive, or fewest negative,
conse9uences.
This means that e·>'<-'rything people do, they do for a reason, whether they are aware of the reason
or not. When people a~e hungry, they eat. When people are lonely, they try to make friends. When
people need the respect or approval of others, they behave in ways they think will earn them respect
or approval.

We consider four ways of thinking about motivation below. They help to explain the basic needs
that most people share. These needs motivate everyone to varying degrees, although for most people
they are buried in the unconscious and they are not aware of them in their day-to-day lives. As
you did with the approaches to leadership explained in Chapter 10, read through these ideas about
motivation, and work with those that make most sense to you.
 302
PART 3 LEADIN
G AND MANAGING OTHERS

Ane.d
Hunger; the need to feel less lonely;
to feel respected or approved of

NEEDS
which satisfies

The goal A motive

N_ot feeling hungry; To find food to eat;
friendship; respect or GOALS MOTIVES to have someone to
approval from others talk to; to do something
to earn respect or
approval from others
to obtain

ACTIONS
Action
Buying a snack; acting in a friendly
manner towards a colleague; showing
a colleague how to do something or
helping out a workmate

FIGURE 11.2 How needs drive goals

Maslow's hierarchy of needs

Mahatma Gandhi spoke of people's basic needs when he said: ' ... those hungry millions who have no
lustre in their eyes and whose only god is their bread.' 18
Human beings have physiological and psychological needs, which Abraham Maslow grouped into
categories and arranged into a hierarchy. Figure 11.3 illustrates Maslow's hierarchy of needs, with

~ - -- - - -- - - - -- - -- - - - - - - - - - -- --- - - -- -----,

.,.____ Transcendence needs

- - - - Self-actualisation nc~·d:
··•·....
- ~- - Esteem needs
\~
__;;,..,_ _ Social needs
_.,.., ...

Security needs

_ __,.,___ Physiological needs

FIGURE 11.3 Maslow's hierarchy of needs

Adapted from the ideas of A Maslow, 'A Theory of Human Motivation', Psychologicol Review, Vol. 50. No. 4, 1943, p. 370.
 CHAPTER II UN 30 3
DERSTANDIN G ENGAGEM D RETENTION
ENT, MOTIVATION AN

or de r ph .
he most basic, or lo w er ' ys1olog ·Ica 1needs at th b
t
ng er m ot · e ottom · o nee th ose needs are reasonably
veil satisfied, th ey no lo19 IVate • In st ead, th e need
next le J s, emerge
, s at the ve up, security need
d begin to m ot iv at e.
an tto m of th .
Let's begin at th e bo e h1erarch y:
. . op le c
Physwlog,ca/ ne.eds: Pe
an no t live w 'th I ou t ai r food I d
water When any of a: ;
th
.. sh or t su pp l h ' ' s ee p an tim e
s ar e m Y, t ey be th eir
necess1t1e ople spend m~st of
er ba s~ome ~rgen~ and pe
energy try in g to ob ta
in th em . O th are sh It sex and a comfortable
c phys1olog1cal needs e er,
te m pe ra tu re .
· t· h m t k'
0 rg am sa io ns elp to ee employees' h ys1. 0Iog1c .
al needs by providin as1c wor mg
g b •
h P
.. sa fe an d se c ur e b uildin .
designed work stations
and chairs
cond1t1ons. su e as. a g, er go no m ica lly '
re st pe rio ds v t 'l an d pa ying a wa ge
Jabour-savmg de
r
vi ce s, , en I ated an d te
mperature-controlle d ai r
they ca n 1ve on .
h , .
lly. Once people's
Se cu rit y ne eds: People ne ed to k no w t ey re safe - p sych olog1c . y and physica
all
2 .l . l ar e satisfied , th ey ca n tu rn th . th gh ts to satisfying their security needs.
phys10 og1ca ne ed s eir ou
su re co nt in ui ty in th . " d wa t supp1y, prov1'd e clothing and obta in a
They ca n en e1r i.ood an er ,
pe rm an en t, sa fe an d se cu re sh el t th
er at pr ot ec ts th e d h ·
m an t e1r possessio
ns from outside threats
an d ot he r pe opIe.
such as th e el em en ts . man
io ns he lp to m ee t e 1, ty by pr oviding fair and just hu
O rg an is at ne ed f~ r se cu ~1
d a sa fe an : op es ent. Dependable lea
dership, job
resource po lic ie s an thy wo rk m g en :1 ro nm ople feel
cu rit y, he al th y w or ki n co nd iti heal pe ra nn ua t1 0n ar e ot her ways to help pe
se g on s an d su
. h ei. r w ork . ·
secure m t · · • needs, they tu rn to social
d th e1· r ph ys10log1cal and se cu nt y
e pe op le ha ve sat·ISfi e · · d
3 Social needs: O nc ' d b · e k th e company, acceptance, fnendsh1p an
fe el th ey 'b el on an eg m to se d to ha ve
needs. They w an t to g ed to be loved an
ed s ar e ex pr es se d, for example, in the ne
So ci al ne
affection of ot he rs . ends.
, to be a fri en d an d to have fri the company of
someo ne to lo ve
s by pr ov id in g an opportunity to be in
m e social ne ed sed
Work ca n sa tis fy so ing in fo rm ed , he lp ing others out, organi
nships. Be
nd ly w or ki ng relatio le's social needs.
others an d bu ild fr ie em en t an d tru st can all help meet peop
su pp or tiv e m an ag t, self-
employee ac tiv iti es , in ter na lly , th ro ug h autonomy, achievemen
satisfied
e es te em need s ar e e satisfied externally,
through
4 Esteem needs: So m e. O th er es tee m ne ed s ar
resp ec t. for ex am pl
confidence an d se lf- rs and from status and
recognition.
.•; et he rnal esteem
appreciation an d re sp ec t (:r: ,
op le to sa tis fy bo th their internal and exte
--'1c: ; for m any pe advancement,
Work is an im po rf an rk , de leg ate d au th ority, opportunity for
an<.i; ,-::ci~:nitiun fo
r wo eds.
needs. A pp re ci at io n d re sp on sib ili ty can all meet esteem ne
· -· .., ,q, ~ c,,1·r1'0ol ,
s ;·ob title an .
rsona• l
. · t ·
10 n ·n dec 1·5 ;,:...:
1
.....
,1. "" - '· - ., "t
ea tiv itv , lea rn in g, se lf-improvement and• pe
pa rt1c1pa , " -,A1•-., 1·,1> 1•~~ th e need for cr l. At this
to reach your pote•ntia
,.
c lf- ua t ·
,sa tw · n neea:>. -
s to th e fu ll an d d ') b
5 .Je -act 'O U! ' abilities an
d sk ill ,,
t m ak e fn en s ut to
e d t o us e }· ie nc y ('m us t fin d fo od , m us
growth - t h e ne , d b a sen se of defic
ur re on y .
level, you ar en t sp
ca n be. doing so. For ·exam p1e,
m or e of w ha t yo u pr ev en t th em fro m 11 Th
explore an d be co m e · t ·tu at io ns th at •
g and cha engmg.
ey
ac t ag am s si to m ak e it in ter es tin
People at th is lev el re
II d b m . g of te n try
. .
r ;o b du an or d grow as a person. th at
people w ho fin d th ei t nities to developt an se their skills and learn new ones and
·t th.
for op po r euth e op po rtu m y o u nities for personal grow
also look. ou ts id e wh or k . pi dd .sio ns an d op po rtu
Assign w or k t at gi
ves pe o e work-re1at e ec1 r yo ur control.
ak
. If t . at ion needs and are unde dence
allows creativity, fr ee
d om to m
t O t1sfy se -add c ua 1is six th level to his hierarchy. Transcenh'
d th . s
an t ways sa Maslow a e I
help others ac ieve,
These ca n be im po rt ll th e need to serve and to
eds: In la te r year s,
6 Transcendence ne te r whole as. we as
of th e gr ea 120
includes feeling pa rt po te nt ia ·
d realise yo ur
find self-fu lfi lm en t an
 304
PART 3 LEADING AND MANAGING OTHERS

. back'·, coaching, mentoring

, d to 'give
. d you re. rea Y kplace an d in · your professiona J
11 At work, having 'grown' and self-actua Iise 'thers in the wor
and passing on your skills and knowledge to 0
circles can satisfy this ultimate desire.

~ IN PRACTICE
Going backwards
People can move up and down the hierarchy. For example: . ht have security as a primary
• A young couple who have just taken on a large mortg~ge m~g time in order to save money.
. . 1· . . h fi . nds in their spare . .
motivator and step away from soc1a 1sing wit rie erned with security again.
/ • As they near the age of retirement, many e_mpI0Yees become cone d ffi .
. ending time with, an su c1ent
th
• Someone with a satisfyingjob, a group of friends ey enpy spsecuri·ty as a key motivator.
. h I o revert to
income who then suddenly loses their job m1g ta s

t: 0
THE BIG PICTURE

Sound common sense? p h that's why researchers

It does to moS t people. er, aps h · theory' (sitting in a
Does Maslow's theory make sense to you? as an armc air
' . d h . k wn )
haven t bothered to test it out and it has remaine w at is no
th eoryM. I , th .
chair, thinking about people and what motivates them and developing a yes, as ow.s eory 1s
., . . · d And . hh A d
But now 1t s been tested in 123 countries over a five-year peno ·
correct. Fulfilling the needs described in
. .
his h'1erarc hy d oes .
1n d ee d correlate wit app1ness . .. n
.interestingly, you can also be happy 1f . you have good soc1a · h'ps
· I re Iations 1 and self-actua l1sat1on, even

when your needs for food and safety aren•t we II fiu1c.11 . der
n ed. T10 be speci'fie , fulfilment of the. lower-or
·
needs (food, shelter, friends) · · eva Iua t.ion of your
1s· cIoseIy 1·1n ked to a pos1t1ve . life and sat1sfact1on .of.the
higher order needs (respect, self-actualisation and self-transcendence) 1s strongly related to enpy1ng
your life. . .
Another finding is that people seem to feel more positive about their own lives when those around
them also have their needs met and feel positive about their lives, and we en1r:y cu:· lives more when
those around us are enjoying their lives.21

Herzberg's hygiene and motivation factors

Frederick Herzberg adapted Maslow's thoughts on motivation to a w,_rd, :-::tting. His model has
m
also stood the test of time. While Maslow saw motivation operatin g a.Cross a single continuu
n
of needs from physiologic~! to self-transcendence an~ ~cClelland and Atk inson saw motivatio
I as a balance of three pnmary needs, Herzberg d1v1ded peoples needs into two groups of 1

factors operating along two independent continuums. He called them hygiene factors and
motivation factors.22
Hygiene factors don't motivate, but they can certainly dampen enthusiasm. They operate across
a scale from dissatisfaction to no dissatisfaction, or 'neutral'. As Figure 11.4 shows, hygiene factors
es'
relate to the environment in which people do their jobs. When hygiene factors fail to meet employe
expectations, employees are dissatisfied. When an organisation meets its employees' hygiene needs,
employees are in neutral and ready to be motivated by the second class of factors, the motivatio
n
factors.
 - ~'-t(::i fAN
DING ENGAGE
MENT, MOTIV ATION AND RETENTION 305

··-- - - - - -- -- - - - - - - -- -_J
······-··---· ······················
.___ __ ___ ____ _, __···:·-------·-
:· -,,;! .·notivat ion factors
. ,., ',,.
FIGURE 11.4 Herzbe rg's hv;-'
motivate employees?'
.<,,j apted from the ideas of Frederick Herzberg, 'One more time: How do you
Harvard Business Review, 1987.

ted to highly motivated.

The motivation facto rs operate across a continuum from not motiva
in which it's done, provides
From Figure 11.4 you can see that the work itself, not the environment
job satisfaction and motiv ation.
Once people consider
For example, you need to pay people enough that money isn't an 'issue'.
they can find motivation when
their working terms and condit ions (hygiene factors) to be adequate,
challenging work, a sense
doing their jobs gives them satisfaction by providing meaningful and
to continue to learn and
of accomplishment, recogn ition and responsibility, and opportunities
importance of climate, culture
advance - or some combi nation of these factors. This illustrates the
and content.
306
PART 3 LEADING AND MANAGING OTHERS

I] IN BRIEF
. f h giene factors as
Hyg,ene •
• or motivator.
?
d motivators, think O Y , hyg1·ene
loyees
· f ctors an · fy ernp
To remember the difference between hygiene a I er fails to satis , h giene needs does not
physical and motivators as psychological. When an ernp oy Satisfying people~ Y b and a competent
. · not occur. t fyrngj0
needs dissatisfaction results and mot1vat1on can • t'ion in a sa 15
' ' d find rnot1va
motivate them but puts them in 'neutral , rea Yto
leader-manager.
's ideas about motivation.
, d Herzberg h ( h . 1 .
Maslows an ,5 h'erarc
1 y p ys10 og1cal
Figure 11.5 shows the relationship between t h ree Ie vels of Maslow If t l'sat,·o an d,
I er se -ac ua I n
Herzberg's hygiene factors relate roughly tot he ow h t 0 p levels (esteem,
. . · late tot e
security and social needs) and the motivators re
self-transcendence needs).

Motivators ../ .
/l''·,, ............::-:.~
Self-transendence
Self-actualisation needs
yob-related)
./.. ,......../ ' , Esteem needs
.- .,>-' ....,
; ...,. d
..................... \, _ Social nee s

...................• ._.............- ..........\·, ..,.., Security needs

_.. . .------.-: :-=~~> Phy,;olog;cal oeed,

FIGURE 11.5 How Maslow's and Herzberg's ideas relate to each other

Why hygiene factors matter . . . .

It's only when hygie:.e focto,·s fail~(.; :r;eet e;; •pioyees' expectat1cns i.hc:t : I !, : ;_;ra b t heir atte~t,o.n:
Dissatisfaction w,th t h,2 \'•.'O~ri,12r.<• •W'1n-·er,t. co..-,0~ t 0 dom,na~e d.,," > 1-· :•·;,_.··, not only of 1nd1v1dual
ort,ia,\i'=i'•,. ·.. ,_. ,,,:·, the problem is
employees bu• "'k n ,,,1: ..,; , ·iT .':,': _•. · ·-i .•.;~, 2:;,: ;3•:en ::,:-, e: ,tire:
I. '.,I, .._. - -. f\ • • ~ ' • ~. , " I ' j

organisation ···Ntde.
Organisatiorr:; fT,u::;t c,.,:. ,~;1:. 1:;!\ 1 st:;-iv~· 1·0 b·::• c.om112tit:;ve in the ~'Yf'.:",~·-" .- ,: :!,~ s (e.g. comfortable
and attractive office fi.:rr ;ish;; lf,S, g~Jod pay and bci1efits, suitable wod,.n~ .~-:;,-:i:l1lions, up -to -date
technology, etc.) so they can attract, motivate and retain quality staff.

Organisations generally attend to the hygiene factors, but it's mostly up to individual leader-
managers to provide the intangible motivation factors: Interesting and challenging jobs with clear goals
that allow a sense of responsibility and achievement, appreciation for one's contributions, opportunities
for learning and so on. In truth, acceptable hygiene factors are fairly easy to provide, although they cost
money. The motivation factors don't cost money but they do require high-calibre leader-managers.
r to THE BIG PICTURE
CHAPTER ll UNO
ERSTANDING E
NGAGEMENT, MOT
IVATION ANO RETE
NTION
30 7

handcu~ h .
Perquisites: Golden ar:',h yg,ene factor
s or motivators?•
e, th e 'perk w eated up wh en Facebook poached the late Josef De
simone,
Kicked off by Googl h S
I ' st d executive Sh I . Pe ts to
OFG nd b_erg as their chief operating officer
one oog es ar c efs, an ~ a
nga offers pe t insu ra n: ployees take
work? Ga'.11e-maker Zy e and custornis th .' too. Video st ream er Netflix lets em
they lik · .
e err rem unerat, on mrx of ca sh and sto ·
ck Still losing
as much timGe of f as · d
I raise everyone's s I . y 10 er b . e and
p Ioy ee s, oo g e a an es P ce nt, pu tti ng them well above averag
em . . a d .
since then, foun d ,t easier to at tra ct n retain 'tale nt'·
h ore
.
Are these inducem .
ents really gold en andcuffs t ·
p
I
oy ee s to a com pany? O r are they m
' ying em
haps proving how highly vaIued employ ? G free mea ls aren't so·
than th at, pe r ee s are · oogle says its ·
t go od fo od as 'm anufactu d
en ts of s d' 1 · • where c ance conversations. rn the
ty,
h
much abou . h re mom eren p1 . .
m ,g t sp ar k an idea To in crease the lik /'h 1 d 0 f hese potentra. /ly lucrative rnteract rons ,
Food queu e . .b e 00 t
ngth of th e queues elow th ree min · . , long enough and more than
le m ea su re s th e le ut es rsn t
Goog 23 ·
.
10 minutes is to o long h .
- golden handcuffs, yg,ene factors or motivators?
What do you think

son's trilo gy o f needs

McClelland and Atkin na te · b in cC le lla nd an d John Atkinson see to
these
ch y looks at David M our
' r In orn, needs. vironment. Their model relates behavi
O
Maslow's hi.er ar . th ei r en
ra ct w ith
if ie d as pe op le in te ent:24
needs as be m ~ m od bu si ne ss drive an d managem hieve,
three needs direct~y
re le va nt to
lf- ac tu al isa tio n ne eds): the need to ac
to Maslow's se t an d gain
N ee d fo r ac hi ev em en t (similar at ed by ac hi ev em ent are independen
1 le motiv rcumstances,
ak e pr og re ss. Peop that in the right ci
accomplish an d m we ll; th is m ea ns
io n fr om pe rf or m
in g a task tspeople, leader-
personal sa tis fa ct feed ba ck on th ei r achievement. Spor
ne ed
or m er s. They also ten excel in their fie
lds.
they ar e hi gh pe rf hi ev em en t m ot iv e of
be with
an ag er s an d ot he rs w ith a st ro ng ac es te em ne ed s) : th e need or desire to
m aslow 's social and motivated
N ee d fo r af fil ia tion (s im ila r to M ed an d he ld in po pular regard . People
2 cepted, lik Research has
to a gr ou p an d be ac omer service staff.
others or to be lo ng blic an d m ak e go od cu st
deal well w ith th e pu
by affiliation of te n have high affiliatio
n needs.
ag er s individuals have
found th at m an y A si an m an
fluen tia l, to m ak e an impact. Some
be in d for
d fo r po w er : th e need for control, to au th or ity , fo r th ei r ideas to prevail, an
3 Nee d in a position of res have
in te ns e de si re to be in ch ar ge an th at m an y m an ag ers in Western cultu
an ch ha s found
d pr.:-•-;tige. Rese ar .
personal st at us an ne ed rela tiv e to
r po v.r!?.:. Th e strength of each .

a hi gh ne ed fo to so m e ex te nt . • •
kmg/
· .J •·. ·•. • ...-, ·,, , 1, 1..ee ne ed s ei r behaviour and wor
ea L~n . .. •·1
w hi ch af fe ct s th
Everyone h as
i,.
s profile ', yourl team -h'
. . ,.. ._,r,,, .,.~.. .,v ..;1 j,1, ue 'need
,

• pe op le t'·, :::, d ou t \ ne ed s pr ofile of/peach ofr

the others gives -m an ag er' is to fin
en t st yl e. Yo u _
L t,
r1 . . , •. r /o3 d er
.:- , , . ; • •, ct
-"'
l. (' ~ .j./At~ -1\.>fVJ l,,, o-f?fotvO, ((.).,-\
manag em w ith in yo ur co nt ro
it in 1Nay.- that ar e
1

m em bers an d m ee t

Ufil IN BRIEF ·.=•'fi . ·

pl oyees . . . · . '
e n w ay s to m ot iv at e em s1t1v e motrv at, ng moves.
rolli ng on es own
Eleven prov .. . h T, these po charge and cont
.bl . being in
. .
an d po s1 t1v 1ty go to ge t er. wryrules as poss, e, ronment.
Mot,vat,on d with as fe h' . k, h'1gh -rewards envi
h ns
•••
f'.'
I e om -
1 Allow person• aatrre op /e wh O savoura ,g
destiny m ot iv e pe
 PART 3 LEA
DING AND MANAGING OTHERS

••• 2 Bu1·1d a culture of camaradene and collaboration that ':alues teamwor '
k openness and friendship to
I they trust an
d l'k dh I .
e an e P satisfy
I

motivate people who enioy the opportunity to work w1th p~op e Ythat invites an exchange of
J tearn in a wa
ernpIoyees' social and esteem needs. Structure your . teship system encourages people
'd . . Austrara's .
basic rnad offer help an d assistance.
i eas, interdependence and mutual support. i
to help one another so ensure employees Feel able to ask fo r a,n · ·on accomplishments and
3 B. ' k tearn s rn1ss1 '
uild a sense of pride in the orga nisation's and your wor
values; this motivates and engages most people. . h' h IF-esteem and confidence can
4 Bui'Id self-esteem and confidence because onIYpeop Ie with 1g se · tion
perform at their best. This is one of the unrecognised keys to rnotiva ·
S Consistently recognise employees' efforts. . Give every employee the
·
6 Make everyone a winner because not h'ing succee ds like success.
c I
· ·fi cant
at least rna kea s1gni
. 'b . d be success, u ' or
opportunity to make a worthwhile contn ut1on an . I d · success .
.b . d' one invo ve in
contn ut1on to the team's success. Give ere it to every t nity for satisfying their
7 M h I · · h i:i; th greatest oppor u
ate peop e w,th Jobs and career paths t at o er e . k'II d abilities· then make sure
I
particular needs and that make the best use of their particulars s an '
that they understand precisely what is re9uired of them. nising employees· for
8 M t h h k · d r th person when recog '
a c your t an -you strategy and its e 1very t~ e . d in front of a large group so do this
:xan:'ple, shy people may not feel comfortable being recognise
in private I
9 orr · .
iTer well-designed jobs with clear measures of success an ea Y
d s ways to track resu ts.
. I • d
Worthwhile, interesting and challenging work motivates people who are into _tr_ning a: k .
developing their skills and abilities and who want to make a meaningful contn ution an nowing
what is expected, why it matters and how they are doing. .
10 p rovi·de rewards employees value and connect them cIear IYtO go odjob performance. .
11 Show apprec1at1on· · and celebrate, because recognising · · an d ce Ie brating accomplishments
..
· I · d · ·
interactive envir· onment · Recognising people
.
motivates peop e who want a fun, supportive an
for the 9uality of their individual performance and the value they add to the work team motivates
people who enjoy achieving goals and earning the respect of others.

Four basic emotional needs

Research from the fields of neuroscience, biology and evolutionary psychology combine with
motivational research to identify four basic emotional needs that drive people. These four needs,
or drives, are the product of our common evolutionary heritage. Because these four needs are hard-
wired into the human brain, how well they are satisfied directly affects employees' emotions and,
therefore, their behaviour in terms of how they work.
l The drive to acquire (similar to Maslow's esteem needs and McClelland and Atkinson's need for
power): People are driven to acquire items that bolster their sense of wr-::!!l_·,0i ng - physical goods
like clothing, housing and money, experiences like entertainment ::,,-,.,; , . ;:. ,d, and indicators of
status such as a promotion and a private office. (People compare the:_;c- :. : ,. to what others have,
and this explains why people always seem to want more.)
The organisation's reward system is perfect for satisfying th;s nee-:-!, .- ..., :ded it discriminates
between good and poor performers, ties rewards to performance ar:d ui'i:·;,s the best performers
opportunities for advancement.
2 The drive to bond (similar to Maslow's social needs and McClelland and Atkinson's need for
affiliation): Human beings need to connect not only with their parents and kinship group,
as do many animals, but also with larger collectives such as organisations, associations and
 CHAPTER 11 UNDERSTAND 309
ING ENGAGEMENT, MOTIVATION AND RETENTION

ations. Motivation receives an e

n
rganisation and it plummets whnormous h
boost h 1
w en emp oyees feel proud to belong to .an
o en t e organis t' b
hy people can find it difficult t b a ton etrays them. (This need also exp Iams ·
w O
reak out of th · f ·
attempts to connect 'silos'.) etr uncttonal ,silos,
· , despite
· organisatwn
· · s'
An organisational culture that en d
. ndship, openness and pride • th gben ers a st rong sense of'us' and a team spirit, collaboration,
fne ts e
1h drivetocomprehend(simila t M est ,way to satis ·f h
Yt e bonding need.
3 e 'or 1
ro asowsself at 1· · needs
nee d i,
achievemen t)· Peopl d
e nee to make - c uaf 1sat1on and McClelland and At k'mson's
• h .
. h explains why learnin d k' sense O t e world around them and contribute to 1t,
whic g an war mg out answers en d · I
Job design is the key to satisfying thi d hgages a_n e~erg1ses_emp oyees.' . b
1 s nee - c allengmg, mterestmg, meaningful JO s
that encoura~ebemdp oyeesl' to grow and learn motivate and retain employees, while dead-end,
monotonous JO s emora ise and encourage attrition.
e drive to defend (similar to Ma l , .
4 1h , df sows security needs and somewhat to McClelland and
Atkinson s neel or hp~wer): _As part of the fight, flight or freeze response, people naturally
defend themse ves, t e1r family and f · d h . •f
. . nen s, t eir property, and their accomplishments, belie s
t
and ideas agamS external th reats. This extends to the desire for clear goals, procedural
fairness and pro~esses that allow people to express their ideas and opinions. Fulfilling this
drive leads to feehng secure and confident while not fulfilling it leads to resentment and fear.
(This_ ~x_plains people's resistance to change and their dismay at the prospects of mergers and
acquisitions.)
~air, tra_n~parent, trustworthy procedures for allocating resources, dealing with grievances,
rnakmg decisions and managing performance, and policies and programs for enhancing work-

, ,-- life balance and employee welfare satisfy this need.

Further research found that an organisation's ability to meet the four needs explains, on average,

I about 60 p~r cent of employees' variance on the motivational indicators of engagement, satisfaction
and commitment. (In contrast, the researchers believe that McClelland and Atkinson's trilogy of

I
_
needs covers about 30 per cent of employees' motivational variance.)25
Organisations as well as individual leader-managers need to address all four of these drives. In
fact, individual leader-managers influence overall motivation as much as organisational policy. As
with McClelland and Atkinson's ideas about motivation, the drives are independent and people have
each of them in different proportions (their needs profile). This makes it unwise, for example, to pay
employees a lot (drive to acquire) and ignore their need to bond.
Employees may or may not be familiar with motivational theory but they instinctively realise
that many aspects linked tr < ;~:agement and motivation are out of their boss' hands because they are
a matter of organisation,,: .· ·,; ...:s . However, employees also realise that many factors are squarely in
their boss' hands. To se(-• \· ·,:- •., ;vs to do this, go online to CourseMate Express and read the short
case study, 'Appealing to ;:,.::' ... ;;cder needs'.
-~
f CourseMateExpress

Motivating around the world . ,. . , . .

Contributing to the community or society motivates Au_stralians. The_1mposs1ble ~ream - ach1ev1ng
despite adversity _ drives Americans. Germa~s are mot1vat~d. by ach1ev1ng technic:~ excellence,
Japanese by the search for perfection and Italians by recognition of style or design.
 310
PART 3 LEAD
ING ANO MANAGING OTHERS
'

lff l Enco urag ing moti vatio n

d and
assign them tasks and
. . I llect woo
h
If you want to build a ship don't drum up peop e to co
k R h er, teach them to' di · ensity oft e sea. . k· Stra 1, 9;,., tactics and tool, , •.,Y
wor • at long for the en ess 1mm . ..
.
S,11 or s,n .
. cl in M Kniu•,
1 A
thorHouse, Bloomingto n, 2011, p. x 11.
Attnbut,cl to Antoin, cl, Saint-Exupory (Fr,nch author, aviator), quoi. toy afloat. , u
business ltadtr must know to s

, . . and retaining employees, the lower

We ve Just seen that, althoug h they're importa nt for attractin g d r psychological needs th t
, th higher or e a, rts Once again we s a
ord er needs, or hygiene factors, aren't good motivators. Its e Je's bes t ew0 · , ee
• the work itself attracts peop d . t sting and rewardi ng ·
motivate. The interest ing nature of 1n
. b they fin m ere

I
. d J"ob
th e importance of correct job placement - giving peop1e JO s. te them to d o a goo .
. . · hi'ch
t hemselves, Jobs that meet their higher order needs and motiva d The quest10 n 1s - w ways are
There are many ways to appeal to people's higher order nee s.
going to work best with which employees?

The secre t to motivation: is it worth the effor t?them by channelling their

w, ,
help h
we ve seen that people need to motivate themselves and you can
· tO be different for eac. employee, ·
· gomg
•1t 1s
( energy and enthusiasm. Of course, how you channel
·
· 't difficul d t' ate them most (usmg Maslow s
But t h at 1sn t when you know what groups of nee s mo IV
I · h
and Herzbe rg's models), or what their needs profiles are (usmg t e tn
·1 gy of needs or the four basic
rf\}J\ ° (}
emotio nal needs). w0\l-U- ~~ 0 Uo1 IVA IO,\) - V1-l st10 1 Vf'V" ,27
ns. .
' How highly people are motivated depends on how they answer three que
necessa ry skills and the
/ I How hard will I have to work? People need to know they have the
to key in
right resources (tools and equipment, time and information, etc. - see the Chance
1

.
/
Section 19.1 of Chapte r 19: Increasing performance and productivity) to succeed
betwee n performance
2 What's in it for me if I do it? People need to understand the relationship
and reward s and trust that they will receive those rewards.
, offering more
1
3 Is the reward worth my effort? When someone wants better work-li fe balance
money for overtim e probably won't work.
ing they value
When people believe they can succeed at the task and know they'll receive someth
he task or that it is too
in return, they'll be motivated. When they don't think they can succeed at t
hard or when they don't value the rewards on offer, they won't be motivatr~d.
that they can
That's the secret to motivation: To motivate people you must first h.•210 .h.;n believe
1

·:~ for succeeding. This

succeed and then let them know they will receive someth ing they want i,! ':,.-··
.'. work with so that you
means you first need to get to know as much as you can about the peorL F',
for high productivity
can identify and satisfy their needs in ways that are importa nt to them in rc::l.rn
and perform ance.
their jobs. And
1 Don't fall into the trap of assumi ng that you know what people want from
motiva tor and another
remem ber, as _a need ~~c.omes ~atisfi:d, it tends to lose_ its import ance as a
office, more training or
need replaces 1t, even 1f 1t s only more of the same - a bigger bonus, a better
Imore responsibility.
remember, too,
And while it's dear that people have similar needs, summa rised in Figure 11.6,
tly and that everyone
that everyo ne has those in different combin ations and expresses them differen
, different
also has their own ideas of how they want their needs met. To compli cate matters further
lives and careers.
motiva tional need groupin gs come to the fore at different times in people's
 311
ION
CHAPTER 11 UNDERSTANDING ENGAGEMENT MOTIVATION AND RETENT
I

FUN!

FIGURE 11.6 The motivating circle

not.
One more th ing t~ remember: It's hard to ask your team to be motivated when you're
ress.
To find out how to motivate yourself, see the author's blog at https://colemanagement.wordp
com/2017/05/17/staying-motivated-yourself/.

When motivation needs are not met

job and turns
Do you know anyone for whom 'life begins at five o'clock'? Or anyone who hates their
and may even
up only for the money? How their days must drag. They probably do as little as possible
y for large
have become dissatisfied troublemakers. Being unhappy at work adds up to being unhapp
chunks of their lives.
enjoy
If only their leader-managers could find a way to place these people in jobs that they could
feel their
and would give them some satisfaction. If only their-leader-managers could make them
could
jobs were worthwhile and valued and their efforts appreciated. If only their leader-managers
anagers knew
find out what they wanted from their jobs and try to provide it. If only their leader-m
something about motivation. If only.
satisfy
While a job can't meet all of people's needs, it should meet many of them. When jobs don't
take a back
enough of people's needs or sati~fy them well enough, their needs don't disappear or
seat - people still try to meet r-h;::,v; ' ;-i one of two ways:
and is good at
1 They try to satisfy their nu :.:-- ,;j: ;,,,ejob. Consider Ken, who likes to organise people
organise
it. His job provides no s1-,.,,, _ ;·,1 ;J::c his organising abilities, so Ken satisfies his desire to
This may
(which in turn helps rrn,1..: 1-,. r,r--r:ds for responsibility) by running a local youth group.
outside
work out well for Ken, bm e2-;-,:Jloyees who find it necessary to meet many of their needs
doing
work usually end up withdri wing from their job and becoming unengaged 'nine-to-fivers',
only the bare minimum.
2 They become frustrated and express their frustration on the job. Linda, like
Ken, is an organiser
a group of
whose job provides no outlet for her skills. She has become the informal leader of
wing
disgruntled workers and a thorn in the side of her leader-manager. Rebelling, withdra
are other
their cooperation and engaging in subtle acts of sabotage and malicious compliance
undesirable ways people try to meet their needs when their jobs fail them.

When employees keep asking for more

ever heard of
People seldom demand more responsibility, more respect or greater challenge. Have you
nity to
a Workplace bargaining meeting where the employee representatives demanded more opportu
Unlikely.
Use their creativity or track their results so they could feel a greater sense of achievement?
 ~ rt I 3
LEADING AND M
ANAGING OTHERS

People
(M generally focus
aslow): They ask f, on the hygiene factors (He rzberg) or t e
h
carnarad erie, challenor more pay, better superannu ation plans, better ig
f
hysiologic al and safety
hting or air conditio . neec!s
ning, not
. Thi s is·
especiall ge, respect or 'b'l'
respons1 I ity. ' . r order needs. Unde
circurnst ance h y true when jobs fail to satisfy peoples h1ghe 1. dI k ~ these
it rnay be thats, wh en you 'give people what they ask for' and they still comp amt ant ' afc hi:r1ohtivatio
n,
needs with b w at th ey as ked for was not what they really wante d · Attempts o sa . 1sf y 1g er 0
rc!er
factors onl etter hyg·iene factors that target lower order nee d s fa ii because satls actory h .
satisfied t-i . . h Ygiene
p_ut people in 'neutral', so that they can be motivated whe~ their h1g er order needs are
. yg1ene factors don't motivate people - motivatio n factors do.

~ IN PRACT ICE
The WIFT factor
When you assign a task to a n
of d emp Ioyee,
. h' k f h WIFT cactor· What's in it for them? Which group
t rn o t e r- · . 7
nee s would appeal to them m t? A h.
I sup I • os . c revemen t?. Esteem? Self-actual isation? Socral
. .
. What can
PY rn return for good perfo rmance? Further training? More challenge? Recognrtro n 7.

Aif 8 Retai ning emplo yees

The brain is a wonderfu l organ . It starts working the moment you get up in the morning and
it
does not stop until you get into the office.
Robert Frost (poet), quoted in S Rathus, Psychology: Concepts & Connections, Wadsworth, Belmont,
2013 , p. 60.
Actually , that's not quite right - your brain never stops working, even when you're asleep.
It works
when you're in the office, too! But what is your brain working on? That's what matters. ls it
working
on the job at hand or on plans for the weekend?
No longer is it only presentee ism and poor productiv ity that managers need to worry about.
Today's employee s demand more from their employers and when employer s don't deliver,
they are
happy to walk, or at the very least, rein in their efforts while they lobk for a new role.
When an employee leaves, you're faced with finding someone willing and .s 1,11 c to fill your vacancy,
bringing the replacem ent 'up to speed', and stabilising working relationsh ir ·. ,.. d i.in your team
and
with custome rs and suppliers .
There are two types of volunta ry employee turnover:
1 Push turnover : When the organisat ion is so bad it pushes people out.
2 Pull turnover : When the organisat ion is good but another organisat ion pulls the employee out.
The less engaged employee s are, and the weaker the employer value p roposition (EVP) is,
the
more likely are both types of attrition; conversely, organisati ons with a stronger employer brand
and
EVP find it easy to retain the employee s they want and to 'pull' the employee s they want from other
organisa tions. (You can find out more about employer brand and employer value propositio
ns in
Section 28.1 of Chapter 28: Recruitin g and inducting employees .)

Employee turnov er . . . .
It costs a lot of m _o ney (not to ment10n time and the n~k factor of hiring poorly) to replace departing
emp1oyees.. 30 to 50 per cent of an entry-leve l employee s annual salary· over 150 per cent of a mid-level
. . '
, s alary· and 400 per cent of a high-level or highly
empIoyees specialise d employee 's salary.28 But hoW
i ,
 CHAPTER 11 UND 313
ERSTANDING ENGAGEMENT, MOTIVATION AND RETENTION

h ernployee turnover is healthy? The

[lluc . dustry in voluntary · . ge~trally accepted benchmark is to be in the 25th percentile
Y our 10 separations Th· .
for over rate higher th · is means that about 75 per cent of similar organisations
e a turn an yours whi h •
haV . ti' ons to work fior M ' . c puts your organisation in the preferred top 25 per cent
rganisa • any organisat'
of O h b . h' h . ions ana 1yse the turnover figures separately for different
are a s oft e usmess, w ic gives more mean · f 1
mg u measures.
To keep the people you need, make sur k
h e you now what motivates and engages each of them. You
k
Id a so now w a t th ey eac h need to b
IshoU l d t b h .
.
e most productive: You should know \\,hat team members
'k rnost an 1eas a out t eir work how th c
Ih e nition they need m. return for a' i· ob 11eyd pre1er to be managed, how much and what type of
, recog we one, and what they want to learn to make their jobs
more satisfying, for example.
Don't make th e mi stake of thinking employee retention is 'HR's problem' - it isn't. The main
reas O n employees. leave
. organisations is · b ecause of a poor relationship with • their· direct
· leader-
rnan ager · Your ability to retain staff c ld 11 b
ou we e a career maker - or a career breaker. Managers
w1·th a high turnover of employees m ay soon b e too costly for organisations . . to keep on, no matter
how strong their other skills.

Exit interviews
Two factors increase the importance of monitoring how regularly and why people resign:
1 Employee turnover is expensive.
2 It is often difficult to find suitable replacements.
Moreover, especially in knowledge and service economies like Australia's, the right employees
are valuable assets. So you want to understand why they leave (and why they stay). That's where
exit interviews come in. When an employee resigns, an exit interview provides an opportunity to
find out the source of dissatisfaction, if any, and perhaps take action to prevent others leaving for
similar reasons.
When an employee :.', t ei'mi.n ,'l.te<l or retrenched, an exit interview provides an opportunity
for the employee and ! 1-,e organisation to part formally and for the organisation to correct any
misunderstandings thr.: t :•·=.ay have occurred. Any counselling or other form of support that might be
needed can also be offe:.·.:d. at this time.
Another benefit of exit interviews is that when employees leave on good terms, you have an
advocate for the organisation, and when you keep in touch, you extend your networks. ,,
(Just finding out why people leave isn't enough, of course. You need to take action based on the
information collected.)

Formal exit interviews

Employees leaving an organisation may hesitate to tell their leader-manager the real reasons they are
leaving but may be willing to tell someone else. For that reason, someone from the human resources
(HR) department or a neutral third party generally conducts exit interviews, which usually last from
15 to 30 minutes, and keeps records of them for future collation and analysis.
Alternatively, some organisations replace the traditional interview with an online exit survey,
Which can be less threatening for the departing employee and provides information that is easier to
analyse. The aggregated findings are reported anonymously, further increasing the likelihood that
departing employees will 'tell all'. The following In b~ief box lists some typi~al int~rview questions.
Remember to thank employees for their time and their honesty when your discussion ends.
 ""' " I 3
LEADING AND
MANAGING OTHERS

~
Some .. exit 1nte · ·
• C r'Yiew 9uestions
an you explain wh I d
• Could at e to your decision to leave us.?
your work · .
• What do . environm ent have been improved 1n any way•
?
O
• H Y u,think of the work itself?
ow Would y d · · b·
eing part OFit ·
• D 7
0
ou escnbe your work team and what it was like
you feel yo h d
• Wh u a enough training and support? .
at are your ideas for improving the work the work team and the leadersh ip style of the team
Ieader? •
• If circumstan h .
• W, ces c ange, would you consider returning ?
~ ere n_ot offering to do this, but if we were able to match (the new salary or other reason given
or leaving), would you stay? If not why not? IF we could 'fix this' (whatever ,s mentioned),
would
you
I • stay? (Keep asking unt'I 't ' , e th1
·s tells you the genuine reason for
1you ge a yes respons - . .
eav1ng, n_ot the 'polite' reason. You are not offering to match the salary or ,other _th'.ngs m~nt1on
ed
as an ent1_cement for the employee to stay. You are asking a hypothetical, what ,f? question
. This
hypothet1~al series of questions helps you determine the real or most importan t reason/s
the
employee 1s leaving.)
• What are you intending to do?
• What a~e you most looking forward to in your new role?
• What did_y?u enjoy most about working here? What did you enjoy lea st;
.
• What policies and practices do we follow that you feel are praiseworthy. Are there any you
think
we should scrap or change?
• Is there anything else you would like to mention at this time?

Informal exit interviews

If you have a small business with not many employees, informal exit interviews may suit you;
or even
in a larger business where there are no formal procedures for interviewing departing
employees,
you don't want to waste your networking and trust-building opportunity - conduct your
own exit
interview. (Beware of 'hearing what you want to hear', as you may not be 100 per cent impartia
l.)
Your priorities are to part on good terms and to gather information that can help you improve
your leadership and improve the way your team works. You also want to emphasise the
potential
ongoing nature of the relationship - in Australia's small employm ent rn,➔ rh~t, you may
well find
yourself working with former team members in a different capacity in ,\,•: ·. ~- :r organisation.
When people leave your team, ask them these five important que$l:.: ., ;·
1 What outstanding promises or commitments have you made?
2 What parts of your work are more in your head than written d01~p'-'
3 What does your replacement need to know to get off to a good start'(
4 What will you miss most about working here?
5 What will you miss least about working here?
Keep a database of former employees (including those outside your work team) and maintain
contacts via email and social media.
rw IN PRACTICE
CHAPTER 11 UNDERSTAND
ING ENGAGEMENT, MOTIVATION AND RETENTION

Fi~ the problems, keep the employees

.
US technology company studied ex·tI •interviews .
A
f II in a ffi to reduce .its 51per cent annual
t"
urnover o ca centr e staff. They found th . n e ort
t ,,.,pensation, Aexibility and the natu re O fehm~ in r_easons people left were due to issues with coach ing,
co,,, t eJob 1t If Th ose problems were fixed a~d turnover fell
to 25 per cent in two years. 29 se ·
,

l(ey retention factors

,Many types of employees - casu al, full-t. i me, part-time .
ers _ make up m d and temporary employees, contractors and
tefework
O ern organisatio M
aryin g abilities d f . ns. any groups of employees - people born overseas,
I Of v an rom various groups m ·
Peop e t d society, and people from up to five generations
_ make up mos mo ern organisations, too.
1he vital question for organisatio d· • .
d k' . ns an md1v1dual leader-managers is how to provide the types
yees. How can you meet, ~t the same
of jobs an_ wohr mg envuonments that appeal to disparate emplo
and mt e same workplace' the d'ffi · needs and expectations that these groups and types of
1 ermg
t·me
1 •
loyees have? When you don't ' yo u can,t expect them to become and remain engaged, energised
em P . . .
and willing to mvest their energies in the organisation's outcomes.
alian employees:
Fortunately, we know what the key factors are in retaining Austr
• a culture of clear values
• effective leadership
having a say
.
I • mutual trust and respect 30
each other as friends and colleagues.
/ • the quality of working relationships - how people ;~late to
to work are important because
Although an organisation's policies and its reputation as a good place
1

their managers largely determine

they attract people in the first place, employees' relationships with
with their direct leader-manager and
/ how long they remain. That makes each employee's relationship
When you're not the sort of leader-
colleagues the single most critical element in retaining people.
motivated, productive employees.
manager people want to v.•():k for, you struggle to retain valuable,

!R~P.?~::;- .
• ·~•~:,~1:•~ 1::;·~':\;:
Culture and people, r,.;.,; rnoney, engage a~d _retain emp~oyees
1t stands for, or the people they
When employees dof)'t hle ::he culture, the organisation and what
without adding huge costs to your
wo,.rk with, they leave . There are endless ways to retain employees
bottom line. Here are some ideas:
Build an organisation and ~ wo~!< team that people are proud _to
work for (e.g. by achiev ing results,
I , . .
).
being socially responsible and supporting your local communitr'.
investment clubs, j0gg1ng clubs
• Build social communities to develop bonds among employees:
notoriously mobile industries and
and other social activities can improve retention levels, even in
. •
occupations. work and hang them 1n a prom inent place.
• Frame customers, Iett ers th at pra,·se emplo yees'

• Give employees a say in matters that affect them . rs.

• K I · r d b t the organisation 's performance and other dmatte h d 1·r
eep emp oyees 1n,orm e a ou . . ot er mo ern, 1re-
child care and elder care, an
• or:r1rer Aex1'ble work'ing arrangemen , ts help with

friendly practices.
 rAt( I 3 LEAD
ING AND MANAGING OTHERS

d employees can brief

••• 0 rganise·
an informal lunch (or breakfa st w
) ith the <; EO, s
o the cEO an

each. other about recent successes. . ..

rtun1t1es. , re n are , and so on ·, in
's c h'ld
• P rov,de plenty of feed back and lea rning 0 PP 0 d ask how peop 1e I es
'h ' r . bs well one, II as ernp oye .
• S ay appy birthday' and 'thank you ,orp I ·nd ividuals as we ny to thank them
. . ·se peop e as, . . . the cornpa
s h ort, d eve Iop re lat1onsh1ps t hat recogni . f their Jo1n1ng
S en d a Ietter to employees, homes on the anniversa ry 0
• . h . h d work .
c ate t e1r ar
ror their support and saying t hat yo u appreci
It isn't roc ket sc ie nce , is it?

1
/,
Look after high-Right-risk employees
ho can change em
ployer with less risk to their
.
Employees in the 20- to 30-year-old age group, w . t in their lives and can easily find
. comm1tmen s
personal circumstances because they have few maJor _ i n) as employees over the age of 30.
another job, are almost twice as mobile (i.e. twice as hkely t~ re~ g want are particularly at risk and
Th ose with . the skills, knowledge and attn'butes o th er orga01sat10ns
it's difficult to find and train a replacement for them. d nd with little support and
, , , b
Don t cause push turnover y t rowmg h . them in at the eep e
'b t' ng to the organisation and
· d · · l h they are contn ut i tegic priorities to provide a
ma equate mduct10n. Show younger peop e ow . ,
growing professionally and help them understand the organisations s ra
context for their work.
nt effective and transparent career
A diverse and friendly work group, coaching an d d evelopme ' h h d llb .
c 1· Jued generous ea1t an we emg
pathing and performance-management systems, 1ee mg va ' . .
. · · · • k. ) l t f fi edback ' meeting
. career. expectations '
po11c1es (mcludmg arrangements for flexible wor mg , o s o e
modern communications and information technology, performance incentives (tangible as well as
psychological) and social responsibility are all important aspects of the EVP, particularly for younger
employees. Find out what they want from work and try to provide it, and honour the promises made
at the recruitment stage. (You can find other ways to support younger employees in Chapter 32:
Moving from diversity to inclusion.)
Your top performers are also high-flight risks, especially when you r organisation is cutting back
on staff and/or freezing pay to improve the bottom line. (Sadly, the d isengaged and less productive
employees are less likely to leave in these circumstances.) In additio n tr:; t: :'.:: a bove, make sure your
I
I
top performers understand where the organisation is heading and ho-,\' ' : "; iit in .

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KEY CONCEPT 11.1 G
• Test your skills in different aspects of management 1.l Wh~t is _th e difference between employee
with self- tests and simulations. motivation and engagement? Briefly describe the
role of the leader-manager in each .