Keeping employee motivation up in a down economy

By Kurt Nelson

Today’s economic downturn and uncertainty about the future has created a workplace environment that is not always conducive to great employee motivation. Companies often have to go to drastic measures, such as employee layoffs or pay freezes in order to survive. It is reasonable to assume then that employees in companies that are experiencing layoffs, or reduced pay, or decreased bonus opportunities tend to have less motivation than those who are in companies that are not experiencing those factors. So what can we do to keep employee motivation up in a down economy?

The Four-Drive Model of Employee Motivation provides a different perspective on how we can stabilize employee motivation or even increase it. [For more information on the Four-Drive Model of Employee Motivation click here – link to first article]. The Four-Drive approach to employee motivation provides leaders with a different set of levers that they can use to keep employees engaged and committed. If the economic situation prohibits leaders from providing increases in pay or bonuses (i.e., the drive to Acquire) then those leaders need to focus in on increasing the drives focused on bonding, comprehension and defense.

What to do?

So how do we use the other three levers to ensure that employees remain motivated in tough economic times? First, leaders need to realize that there are a number of typical responses that employees go through when a company has layoffs or reduces earning opportunities. Employee response to these types of situations often leads to feelings of guilt (e.g., why was I spared the layoff), anger (e.g., why am I being punished, I’m doing more than ever), fear (e.g., am I next? How much more will be taken away?), and confusion (e.g., I’m not sure what I’m supposed to do or feel).

These responses are real and have an impact on employee motivation. It is vital the leaders ensure that they are as clear and open as possible as to the situation, the reasons for the decisions that were made, and to define as much as possible on what future actions are going to be taken. This will help stem the negative responses. The way forward is to focus on expanding the three drives that we can impact.

Bonding

“Humans have an innate drive to form social relationships and develop mutual caring commitments with other humans…” (Lawrence & Nohria, 2002).

SIDE BAR

Four Drive Model of Employee Motivation

Acquire: the drive to “…acquire scarce goods that bolster our sense of well-being.” Typically these are extrinsic rewards such as pay, bonuses, corner offices, etc…Bond: the drive to create positive personal relationships with others at work that lead to a feeling of belonging and kinship Comprehend: the drive to understand how we fit in, what things mean, how to solve and overcome challenges and to make meaningful contributionsDefend: the drive to defend is activated when a belief, a cohort, or an organization we associate positively with is threatened

In hard economic times we tend to rely more, rather than less, on our friends and social connections. This is particularly true in companies where those relationships might be threatened due to layoffs. The trick for managers is being able to foster and nourish the relationships of those employees who remain. We recommend that companies focus more on creating events that foster real opportunities to bond. These events do not have to be large or elaborate team building events. They can include simple measures such as group lunches, happy hours, or open-forum or sharing team meetings. What is required is that they offer opportunities for individuals to get to know each other at a deeper level than typically offered in a work setting.

There is also a greater need for companies and managers to provide symbolic team elements. These include team recognition awards or ceremonies, on-going group rituals, or the creation of team logos. These actions not only give greater bonding opportunities to individuals but also provide a link to the organization as a whole (which also helps in enhancing the Defend drive).

We also recommend that managers try to form a more solid, personal relationship with their employees. It is understood that this type of relationship is not always possible, but even small gestures of understanding (e.g., finding out about employee families, interests, other hobbies) can have a significant positive influence. For managers who typically focus on achieving tasks rather than building relationships, this relationship process can be difficult. However, the need to bond is real for people and the results of having a well bonded team are significant.

Comprehend

“The natural thirst that is never quenched is the thirst for knowledge.” (Dante)

We all have an innate drive to learn. When employees feel like they are learning and growing in their jobs, they will be more engaged and have increased motivation to perform. In tough times, we can leverage this by seeking employee input into strategic and operational decisions in response to the economic realities. Simply by asking employees for their input on how the company can respond and how they can help in their own job, can lead to an increase in engagement and motivation. We recommend that managers and leaders provide forums for employees to do this – either through meetings, company blogs, town-hall sessions or strategic planning sessions. There is a need to ensure that these forums stay focused on what can be done and remain positive, thus, it is important that these are moderated discussions and not left to the whims of the group.

Another key aspect of keeping employees engaged is ensuring that they feel like they are contributing to the organization by doing their job. They need to see how their work has a direct impact on the company. When organizations are going through difficult times and employees are asked to do more with less this is particularly true. In order to push this lever, managers need to think about how they can link employee’s jobs to the organizational outcomes. Highlighting how a particular job is important to the company or customers can help maintain a feeling of contribution and importance.

Defend

“Humans tend to be especially sensitive to threats, even slights, to their bonded groups, and often react defensively.” (Lawrence & Nohria, 2002).

The drive to defend is a reactive response to a perceived threat to anything that we hold dear. Organizationally speaking, this can be explained as the “tribal response.” Such that when the tribe (i.e., organization) is threatened, the tribe members (i.e., employees) are highly motivated to defend it. This drive is one that can be easily leveraged in trying times. The economic downturn is a real threat and employees will rally behind the company to defend it with increased vigor and creative ideas.

The key, however, is to ensure that your employees feel that your organization is one that is worthy of defending. To this end, leaders need to focus in on clearly creating a bond between employees and the company. This can be done in a number of ways such as having company wide events, creating organizational rituals, fostering the development of interest groups inside the company, and providing clear communication around the positive benefits that the company is providing to your customers and the community.

The problem we see is that companies going through economic crisis often respond in ways that decrease the connection employees have with the company. Leaders need to ensure that they are not limiting conversation or ignoring employee’s emotional response to the actions that a company has to make. The reasons behind employee layoffs and pay freezes need to be clearly explained Realistic expectations of the future need to be communicated and identified. Hope needs to be given to the employees that remain. Reasons for employees feeling connected to the company and what it does need to be strengthened. If these things are not done effectively companies run the risk of alienating their workforce in a time when they need to rally them. The task is two-fold: 1) leaders need to be very clear, open and deliberate in how they communicate and explain the negative actions that the company has had to make and 2) leaders need to reinforce and actively promote the positive impact that the company has on their customers, their community and for their employees.

The Upside

The economic downturn is difficult for all of us. However, if companies take a proactive approach to employee motivation, it can provide a long-term increase in employee engagement and loyalty. Companies that get this right will not only weather this economic storm but come out of it stronger and more apt to reap the economic upturn that will eventually happen.