The ‘Leadership 101’ is a series of leadership training articles. We started this knowledge base with the goal of bringing different leadership perspectives from all corners of the web into one easily digestible format. In this series we will be looking at HR industry best practices and trends; in an attempt to keep you informed, while adding to your leadership arsenal.
While looking over a motivation and engagement infographic from Globoforce, we started thinking back to last year; specifically the different tactics that could be used to increase employee engagement. For those of you who are just now joining the conversation – engaged employees are happier at work and are passionate about their jobs. Not only are they excited to do their jobs, they’re fully invested in your organization and believe in your mission. So what does that this mean for the organization? Well for starters, higher employee engagement levels result in increased productivity and employee retention. This means lower employee turnover and lower talent acquisition costs over time (hiring, interviewing, training, onboarding) – all of which take time away from business operations that actually generate revenue. In essence, knowing what motivates and engages your talent will result in a greater ROI on your Human Capital… or as we like to call it, Your Talent.
Let’s take a look at the numbers …
Biggest motivators for employees (retrieved from a McKinsey global survey):
- Praise from management – 67%
- Attention from leaders – 63%
- Opportunities to lead – 62%
- Cash bonuses/incentives – 60%
- Increase in pay – 52%
- Stock options – 35%
While we can see monetary incentives having some influence on your workforce, they are not the biggest drivers for employee engagement. At the end of the day, your employees want to be recognized and appreciated for the hard work they do for your organization. Statistics from Bersin & Associates indicate that organizations where employees are recognized experience 14% better engagement levels, higher productivity, and superior customer service. If this is true, then wouldn’t your organization benefit from finding out what engages the talent. If a simple “thank you for your hard work” is all some want, then recognition is by far the most cost effective way to keep your talent engaged and productive.
A word of caution however… while these studies provide evidence that recognizing your talent’s efforts and rewarding them will result in increased engagement, there is more to it than that. The responsibility lies with you as the leader to make sure you have access to the right data before you make any decisions for recognition programs. Spend time with your employees and find out what motivates them. Invest in employee assessment tests and make sure you are focused on the right metrics. Remember that your organization runs because of the people you employ. Before you hire a candidate, make sure they are not only the right person, but the best person for the position – and that takes time. Remember that the cost of a mis-hire will result in at least 1/3 of that salary to replace. If your company is constantly plagued by high turnover and low retention, then it’s time to examine your talent pipeline and implement a Hire4Impact mindset.
If you’d like to know more about Talent Inventory Assessments, Retained Executive Search, or any of our other services please contact us today.