If I asked that question of 50 randomly selected medium sized business owners, the first answer would be something like ‘More pay’.
That would be the wrong answer.
‘More pay’ is the default when other things more important to them are missing, and there is no other reason to go to work each day. This is in Australia of course, a place where the necessities of life are covered, nobody is going to starve.
Employees want to work for a successful business, one that offers them security and a chance to learn and develop their talents and interests, as well as supplying the means to buy the necessities of life. Nobody likes turning up not knowing if the business will be open that day, or if the receivers will be waiting for them.
When was it ever a better feeling to be on a losing team, than it was to be a part of a winning team?
Giving employees this reassurance is more than telling them that the business is profitable, although that helps. It is about taking them into your confidence as you would a trusted friend. Funny thing about trust, it needs to be earned by performance, and once earned, it is returned.
Trust given begets trust received.
Creating the environment where that trust becomes automatic and mutual takes time and effort, but success will put ‘better pay’ way down the list of employee concerns.
Following is the pathway I advise those I work with to follow:
Articulate where we are going. It is difficult to get people to buy into a journey without telling them the destination. Try getting your young kids in the car just by ordering ‘get in the car,’ but tell them they should jump in the car, we are going to Luna Park, and you will be killed in the rush.
Paint a picture of the destination. Your kids have a mental picture of Luna park, fun by the harbour, but your employees have no such picture of what success looks like, so paint it for them, recognising that it is not just about the success of the business, it is about what success means for them, their colleagues, friends, customers and families.
Show them the journey. The kids know the way to Luna park, sort of depending on age, but your employees have no real idea of the journey you will share on the way, so lay it out. What sort of operating targets there will be, describe the workplace, the type of customer necessary for the success, what skills and knowledge will need to be deployed , and which ones will need to be developed, Who are your competitors, what are the expected challenges that need to be overcome, and so on.
Describe why it is important to get there. This is not about profits and personal success, it is about what difference you are making to the community and people’s lives, a description of the higher purpose, or the ‘Why’ of the business. It can sound a bit ‘mushy’ and new age, but when there is something that people can relate to at a gut level, the power of that is immense. Profit is an outcome of a job well done, one of the many measures of success, it should not be the primary measure of success.
WIFM. (What’s in it for me) while the objective is to engage with a higher purpose, there will always be a time where this question needs to be answered. When you have succeeded in doing the above, the answer will be about the satisfaction of doing something useful, being valued, having control over your workplace, being a part of a community, learning and growing, and when those are satisfied, they may ask how much will be in the pay packet.
Personalised feedback. All of the above points are general, things that a leader could and should do for the whole group of employees. However, employees are also individuals, and managing direct reports one on one is a core responsibility of leadership. A one on one conversation can be many things, feedback on performance both positive and pointing out areas for improvement, assistance with a problem being faced, collaboratively addressing difficult problems, advice of a personal as well as commercial nature, professional development, and an opportunity to build a relationship of trust and respect. The meetings can take many forms, but they should be regular and formal, which means agendas and meeting notes, as well as diarised meeting times. As a general rule, you would have these meeting with your direct reports, and encourage them to have similar meetings with their reports, indeed, coach them to do so.
When you do all that, you will build a motivated and engaged workforce, and that is a competitive advantage that is really hard to replicate. I can help with all that, having done it several times, and so know how to avoid the most of the traps.
I would add a “sense of belonging” which surely is related to a shared engagement with getting to the destination as well as how that will be achieved
I agree Colin, good pick!!