Motivation Through Staff or Pay Cuts
and sustain. We’ve conducted interviews with senior executives who “have the t-shirt” and it’s no surprise to find that it’s all about engagement, of both employees and management. Here are the key findings.
1. Develop a communications strategyCommunicate, Communicate, Communicate. Too often when implementing a cut management retreats to the boardroom to come up with the solution leaving staff uninformed, worried or unproductive. Communicate openly and engage staff in the process. Everyone should understand the reasons for pay change or the ‘burning platform’.
2. Procedural JusticeTo fully engage employees they must see that the process of cutting is fair and equitable. In that:
- Gives a voice to employees that fully engages them in the process
- Allows time and space for errors to be corrected
- Consistently applies rules and policies
- Bias is suppressed
3. Interactive JusticeEnsure that the quality of interpersonal treatment of staff by the organisation, its management and colleagues is conducted with dignity and respect. Staff should have full information on all issues that may affect them.
4. Manage Employee ValuesBe aware that it’s often the case that staff engage to the level they believe their behaviour will lead to a valued outcome for them. Everyone is different and each employee may well have different priorities when it comes to their value outcomes. Coaching management to understand these values and so what motivates individual employees can greatly help morale.
5. Employee ValuesWe have found that there are 12 main valued outcomes as follows: Top Three
- Stability – Both the organisation and the employee’s current and future prospects are realistic
- Recognition – efforts and sacrifices are recognised
- Work / Life balance
- Remuneration package
- Opportunity to grow & learn
- Work environment / Cultural fit
- Relationships with boss and colleagues
- Reputation of Organisation
6. Incentives need not cost moneyUse the 12 value outcomes to create a suite of incentives available to managers. Some ideas that have worked include:
- Clear and ongoing interactive communication of organisation strategy, financials and outcomes
- Recognition strategies formalised and reviewed. This ranged from a simple thank you through to a fully integrated performance pay system
- Achievement awards, widely announced where possible, for both individuals and teams
- Reduced basic pay and benefits but increased bonuses
- Bonuses based on cost savings or sales leads achieved for individuals and cross functional teams
- Staff development through mentoring and “buddy” systems
- Flexible working hours
- Working from home
- Job enrichment or enlargement
- Getting suppliers or HQ to train staff on latest developments and technology