How to attract, motivate and retain those you really want Motivation without money

1. How to attract, motivate and retain those you really wantMotivation without money Even BolstadManaging Director, HR Norgeeven.bolstad@hrnorge.no / Twitter @EvenBolstad Sofia, Nov 5th 2010

2. Essence • Herzberg was right:Money has more to do with demotivation than motivation • Screening for those being motivated by other things than money might be good for business • Culture eats strategy for breakfast

3. Business impact of HR 30% ”other fields (marketing, strategy etc) 50% outside the control/influence of the control 20% is related to HRI.e. 40% of what can be controlled/influenced is within the domain of HR Kilde:Ulrich/Brobanck/Johnson/Younger:HR Competencies: Responding to increased expectations

4. People mean business ”People are the remaining source of lasting competitive advantages” "There are probably 100 studies out there showing that you get a 30 to 40 per cent productivity and profit advantage by treating people in the right way" Jeffrey Pfeffer, professor & guru, Stanford University

5. Link to bottom line Topline effects Bottom line effects

6. Top vs Medium performers Complex jobs No complex jobs Medium complex jobs 225 185 150 100 100 100 Medium perf Medium perf Med perf Topperformer Top performer Top performer Sources:Harvard Business Review, / Journal of Applied Psychology

7. Feel motivated Look forward to go to work Overall satisfaction Comparison to ideal Walking the extra mile Giving suggestions to improvements Showing excitement Intend to stay Looking for another job Recommendation to friends “Engagement” MOTIVATION COMMITMENT ENGAGEMENT SATISFACTION RETENTION Source: European Employee Index

8. EEI – elements of engagement Source: European Employee Index

9. Employer Branding:Attract and retain EXTERNAL STRONG Attract WEAK INTERNAL Retain Source: European Employee Index

10. Choice of employerWage premium to change(Frank 2004)

11. Companies with ”morale” attract workers with the right attitude • Moral motivated persons have a preference for doing ”the right thing”” • All other factors neutral: Prefer a ”moral” company • Market equilibrium: Company without ”moral standing” must pay higher wages Cost/productivity advantages: • Reduced wages • Screeening of candidates • Motivation employees Source: Prof V Nyborg, University of Oslo

12. Effort and productivity • We are acting in order to maximize our own interests (”Homo Oeconumicus”; HO) – Resiprosity and Altruism are additional motivational factors • The morally motivated worker works harder than”HO”’s • Problem: Moral motivation difficult to identify • In a knowledge intensive company, the individual efforts and impacts are more difficult to control and measure • More difficult with performance based salaries • Opens up for draft dodgers • Important to Attract and Motivate • Attract motivated workers • Motivate the workers you got Source: Prof V Nyborg, University of Oslo

13. CSR– lower wages? • Vitell and Davis (1990): • Satisfaction in work increases with percieved ethical standard of management • Frank (2004): Cornell 9 months after exam • ”Even after controlling for sex, curriculum, and academic performance, employees of for-profit firms (…) earned roughly 59 percent more, on the average, than employees of nonprofit firms.”

14. MotivationIntrinsic Extrinsic • My tasks are an important driving force in my work • My tasks are fun to work with • My job is meaningful • My job is very exciting • My job is so interesting that it, in itself, is highly motivating • Sometimes I get so inspired by my job that I almost forget the world around me • If I`m going to put in some extra effort, I have to get extra pay • It`s important to get a reward in order to do a good a good job • Economic bonuses or commissions are important for how I do my job • I would have done a much better job if I had been offered better economic conditions Kilde: Kuvaas 2008

15. Extrinsic motivation Work performance efficiency= 0,12 Organizational citizenship behaviour= 0,14 Affective organizational commitment= -0,06 Turnover intention= 0,16 Instrinsic motivation Work performance efficiency= 0,38 Organizational citizenship behaviour= 0,33 Affective organizational commitment= 0,28 Turnover intention = -0,30 Extrinsic or instrinsicmotivation Averagecorrelationintrinsic/extrinsic: – 0,14 Kilde: Kuvaas 2008

16. Collaboratorswithextrinsicmotivation • Have less positive work experiences • Lower work satification • Don`t get the same satification by reaching goals • Generally lower satification with life/ happiness • Less dedicated and engaged • Have stronger negative work experiences • Higher emotional exhaustion • High turnover intention • Stronger and more often conflicts between work and family life Source: Vasteenkiste et al. 2007/Kuvaas 2008

17. What creates instrinsic motivation? • Need theory • need for self-determination/autonmy • need for competence experience • Need for belonging • Job caracteristics-model • variation in skills, tasks and task meaning -> perceived meaning • autonomy -> perceived responsebility • Feedback -> perceived knowledge Kuvaas 08

18. Conditions for HR-initiatives to work • Intention • Reliability in the mechanismes • Intended vs implemented initiatives • Individual differences • Costs connected to initiatives • Employees experience of relations(between employees/organisation or management) • Internally consitent, complementary and reciprocal incentive HR-initiatives Prof Kuvaas 08

19. Work autonomy • The job permits me to take my own decisions about how to do my job • The job permits me to decide which order I do things • The job permits me to plan how to do my job • The job gives me the opportunity to make personal initiative or evaluation about how to do my job • The job permits me to make my own decisions • I can make my own decicions • The job permits me to decide witch methods I will use to complete my job • I have substantial amount of freedom and independence in my job • I have freedom to both plan and complete the job Kilde: Morgeson 03 /Kuvaas 08

20. Southwest Airlines • Awards and acnowledgement • Best luggage handling • Fewest customer complaints • Best customer service • Safety • Lowest turnover • The best place to work • The only North-American airline company that has earned money since the start • No serious strikes or conflicts http://www.youtube.com/watch?v=G9lZV_828OA

21. Success formula:Alignement and consistency • Job safety • Competitive salary and benefit packages - variable pay based on company performance • Large investments in training and development • Limited differences regarding status among employees (offices, salaries etc) • Very selective recruitment • Autonomous teams and desentralized decitions • Knowledge sharing within the whole organisation(productivity, financial indicators etc) Pfeffer & Veiga (1999)

22. Calculative, cynical leadership “Our troops shall be taught to fear their own officers more than the enemy.” Frederic the Great

23. EngagementEuropean Employee Index 2010 Rank 2010 Rank 2009 Change NEW

24. Differences inHR practice Ca Calculative Collaborative Source: Nordhaug/Gooderham citing Brewster

25. Bulgaria vsNorway and USA Bulgaria:High Power Distance HighUncertaintyAvoidance LowIndividualism Medium Masculinity PDI: Power Distance IDV: Indivdulism MAS: Masculinity UAI: UncertaintyAvoidance From www.geert-hofstede.com

26. Too Naive? ”Meeting a stranger; Do you basically believe that he/she want to do you good?” Too Cynical? Source: European Social Study/NSD