Recent research has shown that the number one key to employee satisfaction is not pay, as most would suspect. Pay is not the leading consideration, according to an ongoing survey by Career Systems International. Even the much-vaunted notions of recognition and respect fall lower on the list of Top 20 Retention Drivers. Almost half – 48.4 percent – of the 7,600 plus respondents in the seventh edition of the survey, claim that “exciting work and challenge” top the list of reasons for staying at a job. Second on the list of Top 20 Retention Drivers, at 42.6 percent, is “career growth, learning, and development” (Kirkpatrick 2005). For this reason, it is incumbent on organizations to satisfy this inherent need and maintain employee satisfaction. Organizations that invest in the development of their employees more than recover the costs over time. By retaining employees, the value of their development increases. They will increase productivity and contribute to the overall success of the organization. Their expanded knowledge makes them valuable assets for the company. As more than a quarter of the working U.S. population reaches retirement age in the next three years, employee development plans will be a vital part of the knowledge transfer process for both companies and employees alike.
One of the key functions of a good employee development program is to select, cultivate, and train future leaders and managers. Employees throughout the organization will be motivated to move up in the organization if they know that they have a chance to be considered for leadership development. Developing the skills of this carefully chosen staff is essential to achieving the organization’s business strategy and achieving a high level of worker satisfaction. Continual education for employees is one of the most vital organizational strategic goals. When organizations hire the best candidates and develop them properly, both the organization and the employees benefit. When organizations are able to retain quality employees with sharp skills, the economic prospects for the organization improve considerably (Cascio 1998). Employees throughout an organization should be examined and considered for future leadership positions within the organization. In many cases, companies only confine their search for future leadership to administrative or management employees (Sussman 2005). If employees throughout the organization believe that through hard work, motivation, and accomplishment they can achieve leadership positions, they will be more likely to exhibit these traits. The management and leadership development process is flexible and continuous, linking an individual’s development to the goals of the job and the organization. In order to provide opportunities for employees to attain a broad based set of management skills; many organizations establish management development programs. The ultimate goal of these management development programs should be to provide the basis of knowledge necessary to develop the organization’s employees into its future leaders (Chapter 11 2006).
Developing future leaders should be a main focus for any organization that considers itself a going concern. Developing leaders that will help to facilitate employee satisfaction is a key factor in maintaining an engaged, motivated workforce. The traditional view of leadership suggests that for the most part, people are powerless and lack discipline and vision, traits that can only be overcome for them by a few strong leaders (Senge 1990). Organizations that focus on collaborative style leadership and developing like talent for the future will stand a better chance of garnering the support of the workforce. Traditional leadership development that promotes overly political self-interests, the goal to achieve personal agendas, and manipulation of information, in the end, has a devastating impact on employee morale. Certain political behaviors waste a team’s time and energy, divert the focus to the wrong things, and lead to decisions based on inaccurate information. Good employee training models include training for collaborative management, in addition to career management and skill enhancement training (Seldman and Thomas-Williams 2005).
An important element of employee satisfaction is the acknowledgement and support of an organization for the development of their workforce. Every employee in an organization possesses natural or innate abilities that if developed and nurtured could lead to improved work performance and a greater level of job satisfaction. Most people understand their abilities and what they do well (with greater ease), and also what they tend to have difficulty with. Knowing and understanding this allows employees to have the ability to decide what work is best suited for their skills and abilities in order to derive the most possible satisfaction from it (Tavantzis and Emanuel 2006). Organizations that promote this kind of open and honest self-discovery then, allow employees to take advantage of related development opportunities, and find higher levels of satisfaction among their workers. Other important leadership skills such as resiliency must also be allowed to develop. Organizations should allow employees the opportunity to occupy positions that require dynamic thought and are fraught with change, and make decisions that will lead to a more resilient leader. Many employees that are not given the opportunity to gradually work in stressful situations end up blaming management and others for their feelings of distress. Instead of learning to deal with stress and build resiliency skills, they instead feel victimized and become counterproductive. Organizations can overcome this possibility by supporting and organizing resiliency strength development for their employees (Siebert 2006).
Employee development is not only good for the employee, but also the organization. One commonly overlooked aspect of employee development that also encourages employee participation, is the practice of knowledge sharing. Transferring knowledge between employees not only promotes collaboration in the workplace, but also serves to leverage the expertise of a few individuals to a larger potential pool of workers. This practice has served to be an effective mode to transfer much needed knowledge, but also as a collaborative satisfaction tool as well. Organizations that concentrate on a proactive approach to retaining knowledge can help to assure a higher level of organizational satisfaction (Salopek 2005). An organization that takes the steps necessary to provide stimulating and relevant development to their employees will experience employees with: upgraded skills, working to their full potential and equipped to deal with the changing demands of the workplace; employees with higher morale, career satisfaction, creativity, motivation; increased productivity and responsiveness in meeting organizational goals.
Employee Satisfaction and Recognition
Employees were once thought to be just a normal part of the production process of creating goods and services. Today however, most organizations realize that employees are much more than just “input” as part of the business generation process, and require motivation and subsequent recognition in order to build and maintain employee satisfaction. This section will consider the different methods associated with motivating and recognizing employees, in order to achieve maximum employee satisfaction. Much of the basis for employee motivation can be traced to the Hawthorne Studies, conducted by Elton Mayo from 1924 to 1932. The major conclusion of this study was that employees are not solely motivated by money and employer behavior and attitude have a great deal to do with an employee’s satisfaction. After this initial research, understanding employee motivation was the focus of many other researchers, the most notably being Maslow, who developed the need-hierarchy theory. According to A.H. Maslow, people’s needs resemble a pyramid. As basic needs are satisfied, higher levels of needs emerge and motivate the employee’s behavior. Because of this, organizations need to provide a work environment that will motivate employees above and beyond their physiological and safety needs (Gray 2006). The analysis in regard to this topic will be done using the analysis and research presented in Maslow’s hierarchy of needs theory (Fig. 1).
Figure 1: Maslow’s Hierarchy of Needs
Source: John Gray Awards
Motivation has been defined somewhat differently by many different researchers, but is generally accepted as: the psychological process that gives behavior purpose and direction; a predisposition to behave in a purposive manner to achieve specific, unmet needs; an internal drive to satisfy an unsatisfied need; and the will to achieve (Lindner 1998). For this paper, motivation is operationally defined as the inner force that drives individuals to accomplish personal and organizational goals. Having established a working definition for “motivation”, the next step is to assess the role of motivation in organizations. The obvious question that must be asked before assessing the role of motivations in organizations is, “why is it necessary or important to motivate employees?” The answer is one of economics. Motivated employees are more productive, more engaged, and are satisfied workers. Employees that are motivated have a sense of purpose and belonging, and therefore tend to exhibit greater loyalty to their respective organizations.
A good example of an organization proactively assessing the factors that motivate their employees can be found at the Piketon Research and Extension Center in Piketon, Ohio. The Company developed a survey questionnaire consisting of ten factors and asked employees to rank them in order of importance. A comparison of these results to Maslow’s need-hierarchy theory provides some interesting insight into employee motivation. The number one ranked motivator, interesting work, is a self-actualizing factor. The number two-ranked motivator, good wages, is a physiological factor. The number three-ranked motivator, full appreciation of work done, is an esteem factor. The number four-ranked motivator, job security, is a safety factor. Therefore, according to Maslow (1943), if managers wish to address the most important motivational factor of the Center employees, interesting work, physiological safety, social, and esteem factors must first be satisfied. As is the case in this example, an employee survey can help management effectively identify the factors that they should consider in order to better motivate their employees.
An integral part of employee motivation is making it constant and perpetual and one of the best ways to accomplish this is with a formal employee recognition program. Recognizing and applauding employees’ achievements and contributions are critical to reinforcing desired behaviors. The best way to encourage desired behavior and create enthusiasm for continued future improvement is to formally recognize employees. Recognition programs have proven to play an important role in a company’s employee satisfaction and growth. Recognition programs serve to create positive environments that encourage desired behaviors. Organizations that implement meaningful and effective recognition programs often gain a competitive edge through increased employee retention and an increase in overall employee satisfaction (Recognition 2006). This section will highlight the benefits of formal recognition programs and site examples of successes with recognition programs.
The implementation of effective award and recognition programs can create a positive working environment that encourages employees to thrive. Recognition makes employees feel valued and appreciated, it contributes to higher employee morale, and increases organizational productivity. In addition, strong recognition programs are effective employee motivation tools. They work to reinforce organizational goals, mission, and vision (Brintnall 2005). The research in this area has consistently shown a strong correlation between employee satisfaction and strong recognition programs. In a recent Gallup poll survey of 80,000 employees, recognition ranked fourth among the 12 dimensions that consistently correlated with those workgroups that have higher employee retention (Gallup 2006). These results only serve to reinforce the hypothesis that recognition programs serve to motivate employees and bolster employee satisfaction. Another issue the research has helped to clarify is that the recognition need not be in the form of monetary payment. Employees have indicated that certain forms of recognition such as: formal and informal acknowledgement, increased responsibility, better title, or a special parking space, achieve the same desired result as a cash award. The key to recognition programs being successful is to formalize them and make them a priority, like any other corporate goal.
An effective recognition program must be aligned with organizational strategies and goals. This will ensure that employee’s efforts are channeled toward the ultimate goals of the organization. A well thought out and designed recognition program will take into consideration factors such as: the goals of the program, the audience, the budget, guidelines, communication, and methods of award. The following is an appropriate example of the 12 steps of the recognition program at the Sony Corporation:
Step 1: Awareness. What will the recognition program be used for? Will it be used for promoting safety, improving performance, driving quality, or building morale? Define the goal for the program and promote the goal through standard lines of communication in the company. Other communication methods may also assist in communicating the program – use posters, contests, group meetings, department luncheons, fliers in employee paycheck envelopes.
Step 2: Define the audience. Determine what the behaviors are that need to be changed or improved upon. Then determine whom the program will be targeted for. Is it for all company employees, or one specific department? Identify the people who will most benefit from the program and make a commitment to promote the program in that group.
Step 3: Identify how your program will be set up. There is no cast-in-stone formula to follow. Try different approaches and see what works best. Determine if you will recognize individual performance or team performance. Will it be peer recognition, or data and measurement related? Who will make the determinations of who receives the award(s)? Will there be a deadline or time frame for submission of candidates? Will the program take the form of a suggestion program, or will it be performance based? Will there be a theme for the program? The company must determine the criteria for the incentive or recognition before the implementation, and then track the data. If the data does not reflect what is needed, then either establish a new goal, or track a different data point – but either way make sure you communicate that the parameters of the program are changing!
Step4: Build a budget. There is no set cost for recognition programs. Items may be as inexpensive as a $5.00 gift certificate to a $50,000 car. The budget should be based on what the company can afford to put forth. But, if nothing is put forth, remember that a “thank you” only goes so far to improve morale or motivate employees.
Step 5: Seek help if you need it. Look to industry groups, human resource firms, or even your competitors to see what they are doing with their programs.
Step 6: Select the awards to be given. You value your employees. Why not extend that value to award items that match what your employees’ value. Movies, lunches, grocery certificates, electronics, quality clothing items, or cash are examples of items that could be valued by employees. Take a survey and see what people would like. Suggest price ranges (items under $20, items under $50, and items under $100.) You may be surprised what employees come up with, but be sure the awards are something they want. The biggest pitfall in recognition programs is offering an item that is not valued by the person receiving it.
Step 7: Establish the rules for the program. Common criteria for the program usually include: the duration or time frame of the program, the qualifications to be considered for an award, the requirements to be met, the selection process, and how the awards will be delivered. The rules should be clearly written, avoiding buzzwords and jargon. Keep it simple and understandable. Make sure the rules are fair and equitable to all parties involved.
Step 8: Communicate the program to employees and staff. Once the essentials are in place, it’s time to get the employees involved and motivated! Develop a solid communications plan for the program that determines what will happen (and how) from beginning to end. Be as creative as you like, or delegate someone in your company to oversee the program. What promotional materials will be used and who will create them? How long will the initial promotional launch take? Don’t oversell or inundate the employees with too much information, but use the tools available (e-mail, voice mail, meetings, intranet systems, etc.) At the mid-point of the program, use a company newsletter or e-mail, or some other tool to communicate the changes that occurred because of the implementation of the program.
Step 9: Track the changes in performance. Did the program have the desired impact? Did employee attitudes or behaviors change in the desired way? Ask for employee feedback on the programs success. Develop quantifiable methods to determine if the program was a business success.
Step 10: Announce the winners. Congratulate the top performers but be sure to show appreciation to the whole team for their efforts. Meetings provide the perfect opportunity to recognize workers for a job well done. Public recognition reinforces their achievements and serves as a reminder to others to do an even better job next time. Send congratulatory letters to the employees at home (a nice surprise) or at work. Not only can they share the kudos with their friends and family, but they have a tangible token to remind them of their success. E-mail announcements give instant gratification. Wired workers like to receive immediate recognition and this option is cost-efficient and easy to implement. But, be sure to ask employee permission to use their names, as some people do not like to be recognized publicly.
Step 11: Deliver the awards. Pay attention to the details of the presentation. First, a letter of congratulations is always required. Deliver any tangible awards on the date promised. If a “ceremony” is to take place, be sure to get the buy in of the participants, and determine if they would just like their name mentioned, or if they would be willing to be called to the front to receive their award. Make sure their immediate supervisor and top company officer(s) are on hand for the ceremony. If the delivery is to be less elaborate, the supervisor and company officer(s) should still be there to present the award and their congratulations and thanks for a job well done.
Step 12: Maintain the momentum. Just because the program is over, doesn’t mean it can’t still contribute to the business success. Will you run another program? Will the principles and lessons learned from this program be transferable to another program? Evaluate what worked (and what didn’t) in this program and apply it to the next one. Determine if this program helped enhance employer-employee communication, and ask employees for ideas and suggestions on what to do next time, or differently (Recognition).
Although organizations may have different designs and plans for a recognition program, this example from the Sony Corporation includes the essential elements necessary to effectively effectuate positive employee behavior.
The important point to keep in mind regarding recognition programs is that they come in all shapes and sizes and do not have to be expensive to initiate. The most important factors are that they must be fair, consistent, and valued by the employees. As this paper has previously noted, effective recognition does not have to be in the form of monetary remuneration, but must be tangible and appreciated by employees. Most employee surveys indicate that their organization lacks an effective recognition program, and also that recognition programs are valuable at increasing employee satisfaction. Organizations that are able to implement effective recognition programs often benefit from higher employee morale, increased productivity, and a general increase in overall employee satisfaction (Roche 2006).
Organizational Goals and Employee Expectations
Organizations are entities that have a life of their own. They are like a big machine with many moving parts, diagrams, and purposes. Organizations are typically involved with elaborate data collection, in-depth analysis, and making decisions based on the results of that data collection (Wheatley 1994). Essential elements of an organization are the employees that control the environment. In order to be successful in the organizational environment, employees must understand the goals, structure, and procedures that management has laid out as the basis for organizational operations. In today’s competitive and rapidly changing business environment, establishing and achieving goals and objectives are common denominators of successful businesses. Goals are essential tools that help employees and organizations alike, focus on the desired results of the business strategy. Employees that are involved with goal setting tend to stay longer and be more productive employees (Jewell 2006). The impetus is on management to set attainable goals in accordance with the strategy of the organization, and then effectively communicate these goals to employees. The focus of this section is to understand the value and benefit of defining organizational goals, assessing employee expectations in relation to those goals, and the effect of this discipline on employee satisfaction.
Figure 2: Organization Strategy Figure 3: Organization Environment
Source: Ithaca State University
“If you don’t know where you are going, any road will get you there.” This line from Alice in Wonderland has been true in many organizations and companies. They often don’t have-or maybe don’t articulate very well real business goals (Davis 2006). If the leadership has no plan, or does not effectively articulate a plan to the employees, how are employees expected to know and understand what goal they are working toward? For this reason, it is necessary for management to set the goals, define the goals, develop a plan of action to achieve the goals, communicate the goals to employees, and to follow up on expectations (Fig. 2 & Fig. 3). Many issues that face management on a daily basis could be diminished or eliminated by effectively communicating expectations to employees (Findley and Amsler 2006). While the principles of setting expectations are well understood, it is worth review. Without defining the organization’s goals, employees will lack the focus to stay productive and will soon become distracted and misguided.
Figure 4: Performance Management
Source: U.S. Office of Personnel Management
Employees today expect not only to fully understand the mission and goals of their organizations, but to also be involved in many cases with creating the mission and setting the goals. Goal setting is one of the most prominent and basic tools used by both individuals and organizations to assist in guiding their direction and in accomplishing it (Fig. 4). There are several important goal related terms that will be addressed here such as: mission, objectives, strategy, and action plans. Allowing employees to be involved in the goal setting process, whether by participating in the actual concept, or just participative delivery, creates an atmosphere of collaboration and helps to enhance employee satisfaction. Many researchers define a “collaborative work environment” as a group in which people work effectively together to achieve business results and sustain a positive work environment that includes work/life balance. Organizations wishing to promote collaborative work among their employees create structures and practices that encourage the desired results (Gewirtz 2005). Teamwork will be addressed in greater detail later in this paper. The important point is to recognize the strong correlation between employee involvement in organizational goal setting and positive organizational results, including increased employee satisfaction.
Those that are involved in the organization and are affected by organizational outcomes are called “stakeholders.” In almost every organization, employees are the largest group of stakeholders. As is the case with any organization, the different stakeholders have different motivations and different ideas of what is important to them and the organization. Employee owned change and involvement in the process is practical and functions as a discipline to focus energy on specific tangible goals. While most organizations begin purposefully, economic shifts, changes in the marketplace, and alterations in leadership values and styles impact organization effectiveness. The wants and needs of the individual are essential input to the overall goal-setting process of the group. If each group member is provided the opportunity to contribute to the goals of the group, then the individual energies of the group members will be transformed into achieving the common goal as a team (Carter-Scott 2006). The following section will delineate several of the goal setting processes that employees should be involved with in order to garner greater employee support and satisfaction.
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