Keeping Your People Motivated During Times of Economic Uncertainty

written on November 11, 2008 by Michele Ridella

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No one needs to tell us that the economy is going through a rocky time right now.  We know it, we feel it and as we experience it first hand, so does our workforce. It can be difficult to focus with the distractions of financial downturns on Wall Street, and it is during these times that business leaders need to ensure employees are motivated and engaged on their work. More than ever, now is the right time to identify what motivates your employees to come to work everyday.  Is it just a job, a means to pay the bills, or are your employees focused on what it takes to drive the business?  Let's face it, when the economy takes a down turn, we need all hands on deck to keep our business afloat.

What exactly is motivation and how do we use it everyday with our workforce? That question has been baffling leaders for decades and there are many theories abound. Unfortunately, there is no one answer as motivation is based on what is important to the individual and comes in many forms.  Webster defines Motivation as a stimulus or an incentive. In theory, it is difficult to define Motivation and in reality it is just as difficult to execute. Let's start with some common Myths about employee motivation.

Myth #1 - Motivating employees take time. No one motivates me, so why should I put time into motivating others?

The average cost to replace an employee is a mix of tangible and intangible factors which could cost more than the annual salary.  Consider this time well spent.

Myth #2 - My people are motivated by the same things that motivate me.

Not really. Motivation is personal and should be geared to each employee's individual needs and expectations.

Myth #3 - I thank my people publicly.  Isn't that enough?

Some people cringe with public recognition while others bask in the glory. For someone that is reserved, public recognition could be torture. Again, ask yourself "what is it that drives each of my employees?"

Myth #4 - Money is not a motivator.

That depends.  People want to be paid fairly based on established criteria. Money becomes a demotivator when financial incentives are taken away or reduced.

While this economy is most likely forcing many companies to address expenses, one area to avoid is to cut back on employee incentives and perks. According to John Challenger, CEO and President of  Challenger, Gray & Christmas, Inc., "Companies that eliminate year-end bonuses and perks or cut them to the bone will probably discover that employee loyalty and productivity are greatly diminished" (Gurchiek, K. (2008). Employers Hang On to Perks Despite Weak Economy. Retrieved from http:www.SHRM.org/hrnews).

Financial rewards are important as they provide employees with a sense of recognition for a job that is well done, but there are other methods to keep your employees engaged and focused on the business. There is one common thread to motivating employees and that is the culture of the organization.  What are the elements that make your business unique and in turn, make people want to work there? Does your company practice any of the following?

  • Schedule flexibility for work/life balance
  • Provide opportunities for recognition (public and private)
  • Encourage Wellness initiatives
  • Celebrate successes
  • Keep commitments to employees
  • Reward teamwork
  • Recognize the expectations of multiple generations: baby boomers, Gen X & Yers
  • Support for innovation and taking a calculated risk

As we have read many times, employee retention, job satisfaction and productivity are linked together. Why is it important to focus on motivating your employees? Herein lies the payoff: employee retention is critical to your business's success and while the market may be tight right now, it will not remain that way forever. As the leader of your organization, you need to keep your eyes on the future, and the future should include your best employees.