Taken from "Stop Demotivating Your Employees!" Harvard Management Update, Vol. 11, No. 1, January 2006

Most companies have it all wrong. They don't have to motivate their employees. They have to stop demotivating them.

The great majority of employees are quite enthusiastic when they start a new job. But in about 85 percent of companies, our research finds, employees' morale sharply declines after their first six months—and continues to deteriorate for years afterward. That finding is based on surveys of about 1.2 million employees at 52 primarily Fortune 1000 companies from 2001 through 2004, conducted by Sirota Survey Intelligence (Purchase, New York).

The fault lies squarely at the feet of management—both the policies and procedures companies employ in managing their workforces and in the relationships that individual managers establish with their direct reports.

Three key goals of people at work

To maintain the enthusiasm employees bring to their jobs initially, management must understand the three sets of goals that the great majority of workers seek from their work—and then satisfy those goals:

* Equity: To be respected and to be treated fairly in areas such as pay, benefits, and job security.
* Achievement: To be proud of one's job, accomplishments, and employer.
* Camaraderie: To have good, productive relationships with fellow employees.

To maintain an enthusiastic workforce, management must meet all three goals. Indeed, employees who work for companies where just one of these factors is missing are three times less enthusiastic than workers at companies where all elements are present.

One goal cannot be substituted for another. Improved recognition cannot replace better pay, money cannot substitute for taking pride in a job well done, and pride alone will not pay the mortgage.

What individual managers can do

Satisfying the three goals depends both on organisational policies and on the everyday practices of individual managers. If the company has a solid approach to talent management, a bad manager can undermine it in his unit. On the flip side, smart and empathetic managers can overcome a great deal of corporate mismanagement while creating enthusiasm and commitment within their units. While individual managers can't control all leadership decisions, they can still have a profound influence on employee motivation.

The most important thing is to provide employees with a sense of security, one in which they do not fear that their jobs will be in jeopardy if their performance is not perfect and one in which lay-offs are considered an extreme last resort, not just another option for dealing with hard times.

But security is just the beginning. When handled properly, each of the following eight practices will play a key role in supporting your employees' goals for achievement, equity, and camaraderie, and will enable them to retain the enthusiasm they brought to their roles in the first place.

Achievement related

1. Instil an inspiring purpose. A critical condition for employee enthusiasm is a clear, credible, and inspiring organisational purpose: in effect, a "reason for being" that translates for workers into a "reason for being there" that goes above and beyond money.

2. Provide recognition. Managers should be certain that all employee contributions, both large and small, are recognised. The motto of many managers seems to be, "Why would I need to thank someone for doing something he's paid to do?" Workers repeatedly tell us, and with great feeling, how much they appreciate a compliment. They also report how distressed they are when managers don't take the time to thank them for a job well done yet are quick to criticise them for making mistakes.

3. Be an expediter for your employees. Incorporating a command-and-control style is a sure-fire path to demotivation. Instead, redefine your primary role as serving as your employees' expediter: It is your job to facilitate getting their jobs done. Your reports are, in this sense, your "customers." Your role as an expediter involves a range of activities, including serving as a linchpin to other business units and managerial levels to represent their best interests and ensure your people get what they need to succeed.

4. Coach your employees for improvement. A major reason so many managers do not assist subordinates in improving their performance is, simply, that they don't know how to do this without irritating or discouraging them. A few basic principles will improve this substantially.

Equity related

5. Communicate fully. One of the most counter-productive rules in business is to distribute information on the basis of "need to know." It is usually a way of severely, unnecessarily, and destructively restricting the flow of information in an organisation.

Workers' frustration with an absence of adequate communication is one of the most negative findings we see expressed on employee attitude surveys. What employees need to do their jobs and what makes them feel respected and included dictate that very few restrictions be placed by managers on the flow of information. Hold nothing back of interest to employees except those very few items that are absolutely confidential. Full and open communication not only helps employees do their jobs but also is a powerful sign of respect.

6. Face up to poor performance. Identify and deal decisively with the 5 percent of your employees who don't want to work. Most people want to work and be proud of what they do (the achievement need). But there are employees who are, in effect, "allergic" to work—they'll do just about anything to avoid it. They are unmotivated, and a disciplinary approach—including dismissal—is about the only way they can be managed. It will raise the morale and performance of other team members to see an obstacle to their performance removed.

Camaraderie related

7. Promote teamwork. Most work requires a team effort in order to be done effectively. Research shows repeatedly that the quality of a group's efforts in areas such as problem solving is usually superior to that of individuals working on their own. In addition, most workers get a motivation boost from working in teams.

Related to all three factors

8. Listen and involve. Employees are a rich source of information about how to do a job and how to do it better. This principle has been demonstrated time and again with all kinds of employees—from hourly workers doing the most routine tasks to high-ranking professionals. Managers who operate with a participative style reap enormous rewards in efficiency and work quality.

Participative managers continually announce their interest in employees' ideas. They do not wait for these suggestions to materialise through formal upward communication or suggestion programs. They find opportunities to have direct conversations with individuals and groups about what can be done to improve effectiveness. They create an atmosphere where "the past is not good enough" and recognise employees for their innovativeness.