Category Archives: Motivation Skills

Keep Them or Transition Them Out

From the Ask Tom mailbag –

Question:
In an attempt to retain their highest producers, a call center instituted an incentive plan that highly favored a group of seven. These “Magnificent Seven,” as the partners called them, did produce a high percentage of the revenues. But they were also highly dysfunctional as a group as each one was high maintenance with lots of personal baggage in his/her own right. While the reward system worked to retain these seven, the churn rate for the remaining 23 seats was over 400%. In effect, the incentives to retain seven people came at the expense of morale, work environment, job satisfaction and even the bottom line. The cost of continuously replacing the 23 employees far exceeded the benefit of retaining the seven. Your thoughts?

Response:
So, if I was a direct manager and needed high volume sales for only the next three months, I would go the M-7 every time. But, that is not the way most organizations work. Most organizations need sustained revenue over years and decades. Most organizations need a sustainable system of sales which contemplates sales methodology, recruiting, orientation, portfolio growth, levels of work, promotion and retirement. This goes back to time span.

Three months time span – Magnificent Seven
Ten year time span – Not the Magnificent Seven

What is Work?

“Max, I know how you feel about your team’s attitude toward work. You believe they only show up for the paycheck. You believe, as a manager, you have to incentivise them above their normal pay, with a bonus or spiff to get them to pay attention, or otherwise engage in discretionary effort. Your belief is in line with many employee studies that say most are NOT engaged with their work. So, let’s not talk about your team. Let’s talk about you.”

“Alright, I’m game. But, understand that I am here for the money, too,” Max clarified.

“Yes, you are right, we do have to pay competitive. More importantly, we have to get money off the table. As long as people focus on money, or, because of their circumstance, have to focus on money, employee engagement will be fleeting, at best.”

“Okay, but understand that I am still here for the money.”

“Are you really? I could show you a number of ways that you could make a great deal more money than you are making right, now,” I teased.

“I am all ears,” Max replied.

“If you were willing to sell marijuana, which is now legal in some states, you would make more money than you are currently making.” I stopped to gauge his reaction to this unusual suggestion.

“Yeah, but.”

“But, what?” I interrupted. “You see, it’s not all about the money. People, even you, want work where you can make a contribution to something larger than you. You want work where you can bring your full capability, spread your wings AND receive fair compensation for that work. You want work where your contribution is recognized as important, work that does NOT need a carrot-or-stick for you to get on with that work.”

Max was quiet. He was thinking.

“Max, you are the manager of your team. You get to design that team, select that team and create the environment that team works in. As the manager, you DECIDE the culture of that team. What will be your foundation? Will it be built around spiffs, or accomplishment? I have never known a person to be more competent in their role because they were paid a bonus.”

What Drives Behavior?

“So, what am I to do?” Max challenged. “I have to give them a bonus. The work is routine, in some cases, monotonous. I mean, I know, at my level, it is easier to get satisfaction from my work, not total satisfaction, but there are times when I actually enjoy work. I get a sense of accomplishment. But, my team? I can only imagine they come to work for the money. If it weren’t for the money, they would find something else to do. The only way I can get their attention is with a results-based financial incentive.”

“Tell me more,” I prompted.

“Well, it is pretty apparent. All you have to do is watch what happens. I give my team a bonus for hitting a certain production number and it is amazing how accurately they hit that number.”

“So, tell me, their base salary? What is that for?” I wanted to know.

“Base salary is just so they will show up. If I want them to hit a goal, I have to sweeten the pot. Give them a little kicker. It is just the way it is,” Max insisted.

“I want to understand. As the manager, you create the system, the environment in which people work. The culture you have created is that, for their base salary, your team just has to show up, they don’t really have to do anything special. They can survive on your team by doing less than their best. And that if you, as the manager, truly need anything specific done, a target, a goal, the only way you can motivate them is with a spiff?”

Max nodded. “That’s pretty much it.”

“So, you hold back a little money, and if, and only if, they meet the goal, they get a bonus?”

“Well, yes, that’s the way it’s supposed to work. But, of course, now everyone expects the bonus, kind of like they are entitled to it. So, sometimes, I have to strongly remind them that the bonus is at risk. That’s what we talk about at the team meeting. If we don’t hit the goal, the team doesn’t get its bonus.”

“So, the bonus doesn’t truly drive behavior. You have to remind them that the bonus drives behavior?”

Incentives as a Guided Misadventure

Reggie looked at me sideways. “Do you mean that this whole complicated issue regarding incentive compensation, that we hired expensive consultants to help us with, may be a guided misadventure?”

“You tell me,” I replied. “What type of environment do you create when you tell people that you are holding back part of their compensation because you don’t trust them to do their best?”

“You just said it, it creates an environment of distrust,” Reggie declared.

“And what kind of behavior does this distrust create?”

“Whooo! It’s all over the board. Some people work really hard, appear very dedicated and some people try to figure out how to manipulate the system to their advantage. I don’t know. Come to think of it, the people who seem committed, who perform the best, are the kind of people who would work very diligently even without the bonus.”

“And would you describe those people as stupid for working so hard without having a bonus as a carrot?”

Reggie shook his head. “No. I would have to say that is just who those people are. The words are -dependable-integrity-earnest.”

“So, what do you think this incentive plan is accomplishing?”

Bonuses in Most Companies

“How else are you supposed to motivate people?” Reggie asked. “I look around at what other companies do and bonus systems are used almost everywhere.”

“Why do you think bonuses are used in most companies as a motivation tool?” I asked.

“Well, I just don’t know of any other way to get people to go the extra mile, to give their best effort,” Reggie defended.

“I think you have your answer.”

Reggie looked puzzled.

“That’s your answer,” I continued. “Most companies use bonus systems, because they don’t know any other ways to properly motivate their teams.”

Connecting Values to Behavior in the Interview

“We just had our annual planning meeting,” Kelly explained. “We talked about our core values as a company, and wanted to find a way to integrate that intention into our interview process when we recruit new people into our company. But how do you interview for values? You can’t just ask someone, if they have integrity.”

“You can interview for anything that you can connect to behavior,” I replied. “That goes for any critical role requirement. Connect it to behavior and the questions will follow.”

“Okay, integrity,” Kelly challenged.

“Here’s the magic question. How does a person, who has integrity behave? Then ask about a circumstance where you might see that behavior?

  • Tell me about a time when (my favorite lead in) you were working on a project, where something happened, that wasn’t supposed to happen, and you were the only one who knew about it.?
  • Tell me about a time when, you found out that someone took a shortcut on a project that had an impact on quality, but you were the only one who knew about it?
  • Tell me about a time when, you were working on a project, and someone confided in you about a quality standard or safety standard that everyone else had overlooked, and now, the two of you were the only ones who knew about it?
  • Tell me about a time when, you were in charge of quality control on a project, and in the final audit, you discovered something wrong, and it took significant re-work and expense to fix.

“Once the candidate has identified a possible circumstance, then ask about the behaviors connected with integrity.

  • What was the project?
  • How long was the project?
  • Who was on the project team?
  • What was your role on the project?
  • What went wrong on the project?
  • How did you discover it?
  • How were you the only one who knew about it?
  • What impact did the hidden problem have on the project?
  • What did you do? Who did you talk to? What did you say?
  • How was the problem resolved?
  • What was the impact of the re-work required in costs, materials and time?
  • Tell me about another time when you discovered something wrong and you were the only one who knew about it?

“Would it be okay to ask about personal dilemmas, secrets and betrayals?” Kelly asked.

“Everybody has personal drama. I prefer to stick with work examples. It’s all about the work.”

More examples in my book, Hiring Talent. Hiring guru, Barry Shamis also discusses in his book Hiring 3.0.

But, I Give Them Feedback?

“But, I give them feedback,” protested Tyler. “They know how to do it right. Why won’t they just do it the way they are supposed to?”

“You want your team members to work the line in a specific sequence in a specific way?” I replied. “You are looking for very specific behaviors?” Tyler nodded his head in agreement.

“When they do it wrong, do you pay attention to them?” I asked.

“Of course. I am usually right on it,” Tyler replied.

“And when they do it right, are you right on it?”

“Well, when they do it right, they just do it right. When they do it right, I don’t yell at them.”

“Tyler, to get desired behaviors, you have to reinforce those behaviors in a positive way. Yelling at people for doing something wrong doesn’t teach them to do it right. Yelling just creates avoidance from doing it wrong. That avoidance behavior can by very erratic and unpredictable. They don’t know whether to scream or eat a banana.

“On the other hand, if you positively reinforce desired behavior, it becomes repeated and predictable.

“So, Tyler, you tell me. What has more value, erratic avoidance behavior or positively reinforced predictable behavior?”
_____

Orientation for our online program Hiring Talent kicked off last Friday. There is still time to join. Registration is now open. Follow this link for more information. Hiring Talent – 2013.

Understanding Value for the Work

“I understand that it would be helpful to know about Julio’s value system,” Nelson pushed back. “But what am I supposed to ask him. Are you honest? Do you have integrity?

“My guess is that he would say, yes. Yes and no questions seldom give us much information that’s really useful. And remember, this would be most helpful if it’s about the work he is doing.”

Nelson was still puzzled. “I am supposed to ask him how he values the work?”

“He won’t understand the question if you ask it that way. Try these questions.

  • Before we ship this product to the customer, what is the most important thing we have to remember?
  • When the customer receives this product, what is the most important thing they look for?
  • When we show up at the customer’s location, what do you think the customer expects from us?
  • Before we leave a customer location, what is the most important thing we have to remember?
  • When you look around at your team mates, thinking about their work, what do you find most helpful to you?
  • What do you look for in a new person joining the team?

“All these questions will give you insight into Julio’s value system related to the work.”

Fear and Hesitation

“When we finish the project, the new territory should be ours,” Lucy started. “The competitors will think twice about ignoring our expertise. The client should have a new-found respect for us.”

“Not bad, for starters,” I responded. “Try something different. Pretend the project is already finished. Close your eyes and visualize that we are one day beyond the closing date. Now open your eyes and describe it again.”

It took Lucy a moment to sink in. I could see her eyes blink hard as she moved into the future. “We have finished the project and the new territory is ours. The competitors cannot ignore our expertise in this marketplace. The client has a new-found respect for us.”

“What is different when you talk like that?”

“When I put myself in the future, all the problems that get in the way and slow us down are gone. All of the hurdles have vanished.”

The power of visualization, to a real time in the future, works to conquer more than problems. It conquers the fear and hesitation of moving forward.

Still Accountable for the Result

“You’ve talked about this before, but I want to make sure I understand it. We need to get 30 units out of this team every day, 15 in the morning and 15 in the afternoon. Right now, if they don’t make it, as their Manager, I get pissed. If it happens two days in a row, double-pissed,” Vicki stated flatly.

“And if that’s the way you see it, then, your system will create behaviors that don’t help,” I replied. “Thirty units a day is your goal. You are responsible for the results from your team. If I hold your team accountable for doing their best and I hold you, as their Manager, accountable for the results, what changes?”

“But what if they show up late for work, or take too many breaks, or slow walk the line? That’s not my fault. If they do that and I don’t reach my goal, how is that my fault?”

“You are still fighting it,” I responded. “If I hold you, as the Manager, accountable for the results of your team, what changes?”

Vicki was stumped. She drew a deep breath. “If you are going to hold me accountable, then I have to make sure my team all shows up for work. I have eight people and with all the cutbacks, it takes full effort to reach my goal.”

“And, what if, one day, your most valuable team member is out sick, truly sick, and I hold you accountable for the results from your team?”

“But if someone gets sick, it’s not my fault!”

“It is not your fault that someone got sick, but I will still hold you accountable for the results from the team. What has to change?”