Motivating Career Satisfaction and Retention Allison Rossett Modified

Motivating Career Satisfaction and Retention Allison Rossett Modified J. Marshall 2005

What causes employees to leave an organization? “People don’t quit companies, they quit bosses. ” Length of an employee’s stay is determined by his relationship with his immediate supervisor. Managers who are retention experts will improve employee engagement and reduce turnover.

Managers as Retention Experts American Express They teach managers how to nurture employees Managers are held accountable; retention rates are part of their performance reviews. Interestingly, Charles Schwab has a similar program.

Attrition is an issue, for sure Today, employee loyalty tends to be to their career, not to their employer According to recent CNN/Money research, 8 of 10 employees plan to look for a new job when the economy improves.

Employees will resist competitive offers if they are comfortable in their current positions, have a strong working relationship with their managers, and are confident they can further develop their skills. - attributed to a Charles Schwab director of human resources

Why do employees stay? 1. Employees know what is expected of them 2. Employees have the materials and equipment to support skills and talents 3. Employees do what they do best every day 4. Employees know that someone at work cares (preferably their manager or supervisor) 5. Employees’ co-workers are committed to quality 6. Employees are given opportunities to learn and grow The Gallup Organization found 6 items that are strongly linked to employee retention.

Are they more likely to stay if provided with training and development opportunities? “We found that if the American workforce has the training it wants, 12 percent will leave their current company anyway. However, if they don’t get the training, 41 percent will leave. ” - Research by the Saratoga Institute reported in Olesen, 1999

More Support for a Link with Training & Development § 57% of managers reported education programs enhanced company loyalty § Learning culture had a substantial impact on job satisfaction, which in turn affected turnover significantly § So-- let’s look at how to boost satisfaction and career mo

Definitions for ‘career’ § [n. ] a swift movement, impetus, as in a horse’s headlong career § [n. ] progress through life with respect to one’s work § [n. ] a means of earning a living § [v. ] to move swiftly, erratically, as in, “He careered from one side of the road to the other. ” Careerist: [n. ] an ambitious person set on success, even at other’s expense

We want employees to try, to persist, to be motivated in their work, now more than ever. [Work motivation: arousal, direction and maintenance of effort at work] Why now more than ever?

Why the interest in career motivation now? § Fewer middle managers; more decision making by employees § More knowledge work; more reliance on choices by employees § Great organizations perceive themselves as in a war to attract and keep talent § Worker perceptions regarding lack of security, outsourcing, change § Global competitiveness and need for excellence.

Commitment to Talent The fourth annual High Performance Workforce Study (2002/2003) conducted by Accenture, is based on interviews with 244 senior executives in the United States, Europe and Australia. Its goal was to identify trends and other factors that are currently affecting the performance of workforces and businesses.

Commitment to Talent … while nearly two-thirds (65 percent) cited "developing an effective leadership capability" and half (49 percent) cited "creating an organization and culture that adapts effectively to change" as very important organizational capabilities, only 8 percent in each case said their organizations are performing very well in these areas. Furthermore, just 17 percent of respondents described the overall skill level of their entire workforce as industry-leading.

Ponder this! The Accenture survey also found that, in virtually every case, the mean satisfaction rating with the HR and training functions is higher among respondents who outsource all of a particular training or HR activity, such as recruiting, payroll, training content development or training delivery, than among those who outsource none of that activity.

Theories of Career Motivation § Internal theories of motivation, all influenced by Maslow. These 4 theories relate to the individual’s view of self, work and workplace: 1. Needs Herzberg’s 2 Factor Theory Alderfer’s ERG Theory 2. Expectancy 3. Equity 4. Goal

Theories of Career Motivation 1 a. Herzberg’s 2 Factor Needs Theory Neutral Very dissatisfied Neutral Very Satisfied Satisfaction/content continuum Dissatisfaction/hygiene continuum Satisfaction continuum is based on the nature of the job, such as its purpose, challenge, depth, growth opportunities. Dissatisfaction continuum is based on work context, environment, |such as salary, noise, commute

Theories of Career Motivation 1 b. Alderfer’s ERG Theory Growth Needs Relatedness Needs Existence Needs Becoming more Interpersonal factors The basics, like pay, benefits • If unsatisfied, the need grows stronger • If satisfied, higher level needs increase • If higher level need unsatisfied, quest for lower levels increase

Apply Herzberg and Alderfer 1 A Korn/Ferry study of executives found that the two dominant reasons for job change to be ‘more responsibility’ and ‘greater challenges. ’ Discuss using Herzberg. 2 An auditor has been in his job for 11 years. He’s been doing the same work, has been to no classes, and attended one conference 6 years ago. His comment, “No problem. I go home on time, have a dependable paycheck, nobody bothers me much at all. ” Discuss using ERG theory. 3 Plagued with high error rates and turnover, a financial institution boosted pay and benefits. They did not see a jump in satisfaction and motivation. Why might that be, according to Herzberg?

Theories of Career Motivation 2. Vroom’s Expectancy Theory People are mindful. They think about the implications of their actions and will choose performance that leads to valued outcomes and match their perception regarding their abilities. Value of outcomes X Expectancy= Motivation

Theories of Career Motivation 3. Equity Theory If individuals perceive a gap between the rewards they receive and their effort(s), they are motivated to do less. The greater the perception of gap, the greater the reduction in motivation to perform. Individual’s Effort, Input and Outcomes GAP? ? ? Referent’s Input and Outcomes

Theories of Career Motivation 4. Goal Theory The individual’s conscious goals influence motivation. First, employees must understand their goals. Second, they must be challenged by them, without being overwhelmed. Where possible, they should participate in selecting goals. Goal setting process + goal clarification + goal strength -----> outcomes

It’s not just a pile of theories. The theories influence programs.

From Theory to Practice

From Theory to Practice

From Theory to Practice