A report by McKinsey highlights that employee motivation is influenced by a range of factors beyond monetary incentives, based on a survey of over 1,000 employees globally. Below, we explore four key findings and strategies leaders can adopt to improve employee motivation.
1. Establish Consistent and Simple Performance Management Frameworks
When developing a performance management framework, consistency and simplicity are essential. The survey findings indicate treating these elements separately is less motivating to employees:
- Goal setting
- Performance reviews
- Feedback
- Rewards
Instead, integrating these four pillars into a cohesive framework can significantly boost employee engagement.
2. Performance Reviews Conducted by Skilled Managers
Employees report feeling more motivated when performance reviews are conducted by skilled managers who are actively involved in the goal-setting process. This involvement ensures managers are well-informed during assessments and can provide relevant, personalised feedback.
Encourage managers to collaborate with employees during goal setting. This approach helps managers understand individual aspirations and objectives, leading to more meaningful performance reviews. Regular check-ins between managers and employees can also maintain motivation levels and allow for real-time adjustments to performance goals.
3. Invest in Management Training
25% of survey respondents indicated their managers did not have sufficient skills or capabilities to conduct performance reviews. To empower managers without overloading them, consider the following strategies:
- Employers should allocate dedicated time for managers to provide feedback, making it a regular part of their role rather than an extra task.
- Encouraging peer feedback fosters a more open, collaborative environment while complementing managerial feedback.
- Consider investing in external training courses, such as with our specialist partners, Crisp Professional Development.
4. Focus on Nonfinancial Incentives
Nonfinancial rewards play an increasingly significant role in performance management strategies. These could include:
- The opportunity to lead a high-profile project, that showcase an employee’s skills and talents.
- Greater autonomy in their roles, which allows employees to take ownership of their work.
- Offering more flexibility at work, such as, flexible hours, or remote work opportunities.
In summary, it’s important to look beyond financial rewards to motivate your team. By focusing on these areas, will lead to improvements in productivity and employee retention.
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