The Motivational Manager

How to motivate people in their jobs and in their lives has been a conundrum in our society for centuries – even Aristotle grappled with this during his lifetime. So how do companies motivate people in their jobs in the 21st century?

The old adage about the carrot and stick is still popular in organisations and businesses throughout the world – and is being used to teach and condition through reward and punishment. Yet, in stark contrast to this tradition, research tells us again and again that people are motivated not by the prospect of monetary reward or by discipline but by other, ‘softer’ factors. Recent research suggests there are three core areas that help motivate employees, none of which require paying them more:

• Meaning – reminding staff about the purpose of the organisation;
• Ownership – having a role that people are responsible for greatly increases motivation;
• And achievable goals – being able to recognise that they have achieved something of significance in a day / week / month.

It’s not rocket science; it’s just motivation. From our research at Ipsos, there are some clear opportunities: SMEs often have a family-feel to them which makes people feel part of something bigger. They realise that they are integral to the company and that each and every one of them is essential for the company to run like clockwork and be successful. The meaning is clear.

The close contact that employees have in many SMEs with the managing director or owner gives them a closer understanding of the business and of their role within it. By investing their own time and energy in the company, they essentially have stakes in the company – their success becomes the company's success. This has clear implications for encouraging a feeling of ownership.

SMEs often work with a flat management structure which means that each employee is able to carry a lot of responsibility in their jobs – often because there simply isn't enough time for the owner to be overseeing every aspect of the business, and there aren't enough resources for more senior staff. Some see this as a disadvantage, when in fact the opposite is the case. Being able to see their own achievements, particularly when they’ve done something that ‘the boss normally does’, is going to help even more.

Yet, while this seems straightforward on paper, the practical reality is that too many of the SMEs that we have spent time with, have controlling owners that watch their staff measure out each piece of cake in a coffee shop. We’ve seen staff in distribution companies feeling disgruntled because their work is being constantly checked, and shop owners not giving new and enthusiastic staff responsibility for jobs that they want to help with.

Paying people the right amount of money is clearly going to help attract the best talent, but holding on to great talent and motivating them doesn’t need to be expensive. Non-monetary incentives could play an even bigger role in the motivation of staff in many companies across Europe who continue to rely on financial incentives despite the strong evidence.