Pay and benefits are important, but….

Pay and benefits are important, but financial incentives are limited in their ability to motivate and drive performance improvement. For most people, the most powerful form of reward and recognition is a job that gives them a sense of purpose and is in alignment with their skills and abilities. As reported in the Conference Board survey, one of the main reasons job satisfaction has decreased is workers do not consider their jobs interesting.

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The Undercover Boss and the Invisible Employee

A recent national television program has caught my attention.  The show is called, Undercover Boss which appears on CBS on Sunday nights.  Each week a CEO works undercover on the front line of his organization.  This week’s show featured Dave Rife, the CEO of White Castle. 

During his week on the front line he learned what it is like as an entry level employee, working the line serving hamburgers and the like.  I have to admit the show has a heartwarming element as it features several front line employees who strive valiantly to do their best despite the conditions.  

The only thing that bothers me about the show is it highlights the fact that many corporate leaders are clueless on how decisions made in the boardroom affect the motivation of individual employees and organizational productivity as a whole.  It emphasizes the huge divide between those that make decisions and those who have to follow those decisions.  How can organizations be responsive to change and consumer needs when executives are so far removed from reality? 

Southwest Airlines is one of my favorite organizations and has followed this concept from its inception.  All managers at Southwest work jobs other than their primary responsibility one day a quarter.  They may work as a luggage handler, gate agent, flight attendant or other positions, as long as it is a front line position.  This helps all managers learn more about the company.  In their early days, even Herb Kelleher, the co-founder of Southwest, was seen loading luggage onto his planes. 

Kelleher’s nonconformist philosophy served a purpose.  He wanted his executives and managers to be guiding examples and to be aware how their decisions impact the front line.  Herb felt everyone is a leader and pushed authority and decision-making down to the lowest possible level – on the front line where it has the greatest impact on customer satisfaction.  As Herb once said, “We tell our people that we value inconsistency.”

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Fired Up! Leading Your Organization to Achieve Exceptional Results

Greg’s latest and most powerful book is guaranteed to get you Fired Up!  Studies show the personal actions of the leader are the most important factor in motivating and retaining employees as well as contributing to the financial success of the organization. This book provides practical tips, advice and strategies that will transform managers into dynamic leaders. Based on Greg’s personal experience as a military officer, business owner, organizational consultant and author, learn proven strategies to reward, motivate, deliver exceptional customer service and coach people toward higher performance and greater employee satisfaction. This dynamic and motivational book provides you with tools to grow your abilities, confidence and potential. Learn how to transform your organization by applying this process to your business for immediate results.

Based on proven concepts, you will be able to develop a plan that will generate measurable, bottom-line performance improvement results. You will be able to adapt to changing trends and manage shifts in markets, competition and customer preferences in today’s changing work environment.  A comprehensive range of practical and highly effective leadership tools and approaches are included to help you:

  • Boost performance and generate bottom-line results

  • Lead and manage organizational change

  • Harness the creative talents and skills of your workforce

  • Inspire and lead people to sustained high performance

  • Shift people from status quo to total commitment

  • Solve problems quicker

  • Build ownership among all employees

  • Create customer loyalty

  • Grow your business

    More information

 

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How to Increase Job Satisfaction and Improve Employee Engagement

Increase Job Satisfaction or Work with Unmotivated PeopleIncrease job satisfaction

Employers face the challenges of finding ways to increase job satisfaction so their businesses stay competitive.  A global economy of discriminating consumers has placed demands on employers never before seen.  Employers face the challenges of maintaining productivity, profitability as well as keeping their workforce engaged and satisfied with their jobs.

Environmental pressures, rising health care costs, and the needs of the workforce have placed management in a complicated and tenuous situation.  The answer lies with creating a work environment that maintains employee job satisfaction as well as motivates people toward exceptional performance.

A  survey conducted by the Conference Board showed only 45 percent of Americans are satisfied with their work.  This is the lowest level ever recorded by the Conference Board in more than 22 years of research.

Those that fail to improve job satisfaction are at risk of losing their top talented people to the competition.  Supervisors and managers who maximize the potential, creative abilities, and talents of the entire workforce have a greater competitive advantage than those who don’t.  Employees that are engaged in their work have a higher level of job satisfaction.  Motivated workers provide the health insurance businesses desperately needed in these chaotic times.

HOW TO INCREASE JOB SATISFACTION AND EMPLOYEE ENGAGEMENT–THE PRIDE SYSTEM

The leaders of the organization have the responsibility for creating a high level of job satisfaction.  Dr. Edwards Deming said, “The aim of leadership should be to improve the performance of man and machine, to improve quality, to increase output, and simultaneously to bring pride of workmanship to people.”    A motivating environment is one that gives workers a sense of pride in what they do.  To show supervisors and managers how to build a more productive work environment, I’ve created a five-step process called the PRIDE system.  Leaders can improve employee motivation and employee engagement within their organizations by following this process:

  • Provide a positive working environment
  • Reward and recognition
  • Involve and increase employee engagement
  • Develop the skills and potential of your workforce
  • Evaluate and measure job satisfaction

STEP 1–PROVIDE A POSITIVE WORKING ENVIRONMENT

Job satisfaction begins by first providing a positive work environment.  Fran Tarkenton says, to find what motivates people, “you  have to find what turns people on.”  This is the most important factor in the process.  A motivating working environment requires going over and beyond the call of duty and providing for the needs of the worker.

Walt Disney World Company provides an excellent work environment for their employees or “cast members.”  Employee assistance centers are spread strategically across the theme park.  Some of the services included employee discount programs, childcare information, money orders, postage stamps, check cashing, and bus passes.  The Walt Disney Company realizes that taking care of their employee’s needs keep them motivated,  on the job and loyal to the company.

STEP 2–REWARD, REINFORCEMENT AND RECOGNITION

Mark Twain once said, “I can live for two months on a good compliment.”  Personal recognition is a powerful tool in building morale and motivation.  A pat on the back, a personal note from a peer or a supervisor does wonders.  Small, informal celebrations are many times more effective than a once a quarter or once a year formal event.

Graham Weston, co-founder and CEO of Rackspace Managed Hosting, gives the keys to his BMW M3 convertible for a week to his top performing employees. This creative way to reward employees has a bigger impact than cash. He says, “If you gave somebody a $200 bonus, it wouldn’t mean very much. When someone gets to drive my car for a week, they never forget it.”

I have spent several years researching what organizations do to motivate and energize their workforces to achieve high levels of employee satisfaction.  I have captured their best ideas and condensed and summarized them in a book. There are hundreds of easy-to-implement techniques that are guaranteed to improve performance, energize, help motivate, and improve teamwork. Just about all these ideas cost nothing or very little to implement.

STEP 3–INVOLVE AND ENGAGE THE WORKFORCE

People may show up for work, but are they engaged and productive? People are more committed and have higher levels of employee engagement when there is a process for them to contribute their ideas and employee suggestions. This gives them a sense of ownership and pride in their work.

The Sony Corporation fosters the exchange of ideas within departments by sponsoring an annual Idea Exposition. During the exposition, scientists and engineers display projects and ideas they are working on. Open only to Sony’s employees, this process creates a healthy climate of innovation and engages all those who participate.

Capturing employee suggestions and ideas engages and improves employee motivation, creating a more productive and satisfying work environment. Yet many ignore the untapped resource of their employees who know their jobs better than any expert.

Our Idea Campaigns are different than typical employee suggestion programs. The Campaign is a proven way to capture hundreds of ideas to improve productivity, cut costs and drive improvements from the bottom up in a short time period.

STEP 4–DEVELOP WORKER’S SKILLS AND POTENTIAL

Training and education motivates people and makes them more productive and innovative.  At Federal Express, all customer contact people are given six weeks of training before they ever answer the first phone call.  Learning never stops and testing continues throughout their employment tenure.  Every six months customer service people are tested using an on-line computer system.  Pass/fail results are sent to each employee within 24 hours.  They receive a personalized “prescription” on areas that need reviewing with a list of resources and lessons that will help.  Federal Express’ intensive training and development program has resulted in higher motivation and lower turnover.

There are many reasons training and development makes sense.  Well-trained employees are more capable and willing to assume more control over their jobs.  They need less supervision, which frees management for other tasks.  Employees are more capable to answer the questions of customers which builds better customer loyalty.   Employees who understand the business, complain less, are more satisfied, and are more motivated.  All this leads to better management-employee relationships.

STEP 5–EVALUATE AND MEASURE JOB SATISFACTION

Continuous evaluation and never ending improvement is the final step of the PRIDE system.  Evaluation is a nonstop activity that includes a specific cycle of steps focusing on job satisfaction and employee engagement.  The primary purpose of evaluation is to measure progress and determine what needs improving.  Continuous evaluation includes, but is not limited to, the measurement of attitudes, morale, and motivation of the workforce.  It includes the identification of problem areas needing improvement and the design and implementation of an improvement plan.  Good organizations conduct a job satisfaction survey at least once a year.

Businesses have searched far and wide for the competitive advantage, the best equipment, technology, or the latest business fad.  These provide only temporary solutions.  The true competitive advantage is trained and motivated people proudly working together for a common purpose, contributing their vitality and energy toward the goals of the enterprise.

Additional resources:

Greg Smith’s cutting-edge keynotes, employee engagement consulting and training programs have helped businesses increase job satisfaction, accelerate organizational performance, reduce turnover, increase sales, hire better people and deliver better customer service.  As President and Lead Navigator of Chart Your Course International he has implemented professional development programs for thousands of organizations globally. He has authored nine informative books including his latest book Fired Up! Leading Your Organization to Achieve Exceptional Results.  He lives in Conyers, Georgia.  Sign up for his free Navigator Newsletter.  Over 35,000 subscribers from around the world.

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Factors that Drive Employee Turnover and Job Satisfaction

Despite economic changes, the issue of employee retention is here to stay.  The labor shortage that plagued employers at the height of the economic boom has not vanished.  It may be off the radar now, but it is returning strong as ever.

Successful organizations realize employee retention is integral to sustaining their leadership and growth in the marketplace.  Most businesses focus on employee retention when employee turnover starts to increase.  However, good organizations make employee retention a core element of their talent management and organizational development strategy.  Those that fail to make employee retention a priority are at risk of losing their top talented people to the competition.

For the past two decades, we have helped executives design employee retention plans that provide a comprehensive road map for not only attracting and keeping talented employees, but for motivating and engaging them to achieve a higher level of performance.

Employee Engagement and Job Satisfaction

Just because employees are not leaving does not necessarily mean that they are engaged.  Studies tell us over 45% of today’s workers are disengaged, costing their employers millions of dollars in lost productivity. Our services provide you with the knowledge, skills, tools, and processes to help you design a unified talent management strategy that will lead to low employee turnover and high employee retention.  You will learn the driving forces that drive job satisfaction and employee engagement leading to high employee retention. Our employee retention and talent management strategies will help you:

Factors that Drive Employee Turnover and Job Satisfaction

Employees quit for many reasons.  Some leave for better paying jobs elsewhere. Others depart because they do not fit the culture.  Many more exit because their managers and supervisors are not properly trained. In general, there are five important areas that motivate people to leave their jobs.

Poor match between the person and the job
Poor fit with the organizational climate and culture
Poor alignment between pay and performance
Poor connections between the individual, their coworkers, and the supervisor
Poor opportunities for growth and advancement

These five P’s can be addressed successfully.  Employee retention begins by paying attention to what causes low job satisfaction as well as what attracts, retains, and motivates your workforce.  Here are several reasons talent management and employee retention strategies fail in many organizations.

  • Not connected to the vision, mission, and the organizational values
  • Top leadership not involved
  • Not part of the organizational management strategy
  • Not tied to the bottom line
  • No clear goals
  • No one held accountable
  • Delegated to the HR department

Cost of Employee Turnover

The cost of attracting, recruiting, hiring, training, and getting new people up to speed is tremendously more costly as well as more wasteful than most realize.  Productivity is directly tied to employee retention.  Studies from the Gallup organization show employees who have an above average attitude toward their work will generate 38 percent higher customer satisfaction scores, 22 percent higher productivity, and 27 percent higher profits for their companies.

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HOW TO RESOLVE WORKPLACE CONFLICT

Conflict in the workplace is a painful reality and a key reason for poor productivity and frustration.  Do you have people in your workplace that cause problems for everyone else?  Do they create additional work for others?  One point is clear–conflict does not magically go away and only gets worse when ignored.

Certain types of workplace conflict are readily identified.  Other forms of conflict may not be so easily detected.  Small, irritating events such as negative attitudes occur repeatedly over time and can cause people to strike out at each other.  In many cases, conflict occurs at the senior level of the organization.  In these situations some kind of intervention is needed.

What type of workplace conflict requires intervention?   Anything that disrupts the office, impacts on productivity or poses a threat to other employees needs addressing.  The degree to which you tolerate a situation before intervention may vary.   A manager may not feel it necessary to intervene when a minor exchange of words occurs between employees–unless such an incident becomes a daily occurrence and expands beyond the employees initially involved.  However, a situation where one employee threatens another requires immediate action.  When handling conflict, some basic guidelines apply.

Understand the situation.  Few situations are exactly as they seem or as presented to you by others. Before you try to settle the conflict insure you have investigated both sides of the issue.

Acknowledge the problem.  I remember an exchange between two board members.  One member was frustrated with the direction the organization was taking.  He told the other, “Just don’t worry about it.  It isn’t that important.”  Keep in mind what appears to be a small issue to you can be a major issue with another.  Acknowledging the frustration and concerns is an important step in resolving the conflict.

Be patient and take your time. The old adage, “Haste makes waste,” has more truth in it than we sometimes realize.  Take time to evaluate all information.  A too-quick decision does more harm than good when it turns out to be the wrong decision and further alienating the individual involved.

Avoid using coercion and intimidation.  Emotional outbursts or coercing people may stop the problem temporarily, but do not fool yourself into thinking it is a long-term solution.  Odds are the problem will resurface.  At that point not only will you have the initial problem to deal with, but also the angry feelings that have festered below the surface during the interim.

Focus on the problem, not the individual.  Most people have known at least one “problematic individual” during their work experience.  Avoid your own pre-conceived attitudes about individuals.  Person X may not be the most congenial individual on your staff.  This does not mean they do not have a legitimate problem or issue.  Focus on identifying and resolving the conflict.  If, after careful and thorough analysis, you determine the individual is the problem, then focus on the individual at that point.

Establish guidelines. Before conducting a formal meeting between individuals, get both parties to agree to a few meeting guidelines.  Ask them to express themselves calmly—as unemotionally as possible. Have them agree to attempt to understand each other’s perspective.  Tell them if they violate the guidelines the meeting will come to an end.

Keep the communication open.  The ultimate goal in conflict resolution is for both parties to resolve the issue between themselves. Allow both parties to express their viewpoint, but also share your perspective.  Attempt to facilitate the meeting and help them pinpoint the real issue causing conflict.

Act decisively.  Once you have taken time to gather information, talked to all the parties involved, and reviewed all the circumstances, make your decision and act.  Don’t leave the issue in limbo.  Taking too long to make a decision could damage your credibility and their perception of you.  They may view you as either too weak, too uncaring, or both, to handle the problem.   Not everyone will agree with your decision, but at least they will know where you stand.

Greg Smith’s cutting-edge keynotes, consulting, and training programs have helped businesses improve communication, reduce turnover, increase sales, hire better people and deliver better customer service.  As President and founder of Chart Your Course International he has implemented professional development programs for thousands of organizations globally.  He has authored nine informative books including 401 Proven Ways to Retain Your Best Employees.  He lives in Conyers, Georgia.  Sign up for his free Navigator Newsletter by visiting www.ChartCourse.com or call (770) 860-9464.

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Why Good Companies Fail

Tulips, Turnips and Turn a Round Strategies

Have you ever experienced this in your company?  Company X celebrated their 20th anniversary this year.  During those 20 years a lot of things have changed.  Once a shining star in their industry, now the shine seemed to be fading fast.

The HR Director was the first person to bring up the problem.  It seemed the executives were going in one direction and everyone else was moving in the opposite direction.  During the past 12 months they implemented two realignments and laid off 20% of the workforce.  Employees complained they were working the jobs of two people, the lack of communication and a growing frustration and distrust of management.  People reported the leadership direction appeared reactionary and disjointed.  The HR Director tried to explain the problem to the President, but it became clear the meeting was not going anywhere.

When we entered the picture, I requested a meeting with the President.  After I asked a few questions the picture became clear.  He had been in his position for eight months and was brought in to turn things around.  It seemed the harder he pushed the worse things became.  His frustration was palpable. His executive leadership team was not working together and in fact, one of his executives was sabotaging the process.  The combined frustration had caused him many sleepless nights, high blood pressure and was affecting his home life.  If the company did not turn the corner soon they would ultimately face bankruptcy and disgrace.

Jim Collin’s latest book, “Why the Mighty Fall,” describes the five stages of decline this company was experiencing.

Stage 1: Hubris Born of Success

During this stage the company begins losing sight of the values and strategies that made it successful.  Their success becomes a weakness and begins to eat away at their foundation and a feeling of “entitlement” permeates the organization.

Stage 2: Undisciplined Pursuit of More

The organization has the feeling they can do no wrong. They feel they are invincible and blind to their incompetence.  They expand into markets and make risky and undisciplined decisions to grow, purchase, expand and enter into areas they know little about or should be involved in.

Stage 3: Denial of Risk and Peril

As they enter this stage, warning signs and metrics begin to mount.  Teamwork, communication and morale issues begin to surface.  Despite the symptoms, they ignore reality and continue along the path of destruction.

Stage 4: Grasping for Salvation

At this stage, they are struggling and looking for a silver bullet solution to save them.  Typical actions can include bringing in a new charismatic CEO, bold and daring new strategies, new acquisitions and radical transformations.  The clock is ticking and unless they get the right help at this stage, they have little chance of recovering.

Stage 5: Capitulation to Irrelevance and Death

So what do you do if you find yourself in this predicament?  The good news is if you catch the decline in the early stages then most companies can remedy the problem themselves.  But when the problem has gone on for a lengthily amount of time, when the band-aids, silver bullet programs, flavor de-jour have failed to work, then you may need outside assistance.  The longer you wait the more difficult the cure.  It is similar to a patient who keeps experiencing a pain that never goes away.  When they finally go the doctor the treatment ends up costing a lot more money in lost opportunities, time and inconvenience.

I have learned an “outsider” has a special ability to address and talk openly about business matters an “insider” cannot.  The old proverb, “it is lonely at the top” is true.  Executives can share things with me they will never share with others in the company.  This position of trust is sacred and the objective and honest feedback is critical.

A couple of weeks later the executive team met offsite for a day long meeting.  The executive team was comprised of intelligent, dedicated and motivated individuals.  However, each individual had a completely different personality, values and an opinion on how to lead their company out of the mess.  They were able to lay everything on the table—no holds barred.  At the end of the offsite they had outlined a unified strategy, goals and action steps to move forward.  Now after several months, the company has turned the corner and mostly everyone is pleased in the direction they are going.

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