Responsible Business Leaders’ Recommendations for the Area ofEMPLOYEES

Why do companies need motivated employees ?Imagine a workplace where em-ployees come to work in a good mood and with even better ideas. They participate in deciding about daily tasks, each of them has their own indispensable role and is part of a successful business. How can you make this happen in your company ?

You know that your employees are motivated if they speak well about their company in front of their friends and family, see their future in the company and make every effort even outside their typical responsibilities.

This helps companies improve their business results. There is a rule that motivated employees are more productive. Companies which achieve a high level of motivation, i.e., a motivation of over 67 %, have a 50 % higher shareholder return compared to the average.

A company’s performance is also influenced by employee absenteeism and the num-ber of applications for new job positions in the compa-ny. Companies which have a higher share of motivated employees attract new tal-ents. This increases their com-petitiveness and future sus-tainability. According to the study Best Employers Slovakia 2014, the average number of absences per employee at the best employers in Slovakia is 8 days while employees at other employers are absent for 13.7 days on average. The best em-ployers also receive a higher number of job applications (59 compared to 26 job appli-cations received by others).

Topic: How to Increase Employee Engagement and Motivation

“Does your company employ mo-tivated employees who actively participate in your projects and are willing to push themselves to the limit ? Why is that so ? Surveys show that employees do not care only about their paycheques, although fair remuneration is important to them. The key is if they feel valued by their company, if they have career growth prospects and if the proce-dures and processes in the company contribute to their higher efficiency.”

Ivana Vandlíčková consultant and project manager of Best Employers Study Slovakia at Aon Hewitt

Motivation and business results

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Revenue growth Operational margin Shareholder return

Companies with below average motivation

Companies with above average motivation

Best Employers

Average level of motivation

Source: Aon Hewitt database

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Five Factors which Most Affect Employee Motivation and Engagement

Business Leaders’ Recommendations for These Factors

A BLF exampleHEINEKEN Slovensko (Hurbanovo / Slovakia, beer industry) has been awarding employees at non-managerial positions for their compliance with the company’s values for the past four years. The “Heineken Jednotka” Award has been going to ten best employees every year. They have been rewarded with a trip to Amsterdam during the Queen’s Day, the official celebration of the Dutch queen’s birthday. They have also been publicly commended at the end-of-year meeting of all employees. The company also awards its long-time employees.

1. People firstIn the long term, the most important requirement for employee motivation in Slovakia is how employees are valued by the top management, i.e., if the company’s employees are viewed as its greatest asset. For employees to feel valued, it is vital for the management to show interest in them and respect and listen to their views. In general, managing directors and top managers should treat all of their employees humanely and fairly. It is very important to distinguish the best employees from the average ones, celebrate their job achievements and thank them for their well done work. However, never forget to take into consideration employees’ preferences. Not everybody wants to be commended in front of a large crowd.

1. People first

2. Processes

3. Career growth

prospects

4. Fair

5.

A BLF exampleHEINEKEN Slovensko (Hurbanovo / Slovakia, beer industry) communicates its remuneration policy transparently in the regulation “Remuneration Policy”. Employees have access to information about remuneration conditions, which are also included in their employment contracts. Besides their salary, salary tariff, the maximum amount of variable pay, they also know their salary bracket.

BLF examplesIn Accenture (Bratislava / Slovakia, professional services in management consulting, system integration and outsourcing) employee development plays a key role. Accenture has implemented tools for the management of employees’ development and career. However, a decisive role in the career development of individual employees is played by their team leaders / career advisors, who purposefully work on their development, provide them with feedback and help them direct their career path based on their individual preferences, knowledge and skills. Human resources departments train the team leaders / career advisors to be well-prepared for work with employees. Accenture does regular surveys of employee engagement; the human resources people organize informal focus group discussions with employees to get feedback. Besides that, the company inquires about cooperation with team leaders / career advisors at exit interviews. HR, in collaboration with the commercial department, regularly communicates company regulations regarding promotions or pay rises to ensure transparency and prevent communication noise.

In a recent internal survey, the employees of Tatra banka confirmed that they understood job rotation and crossing as career development. Crossing is used especially in processing centres where trainees are assigned to various structures and departments to learn skills associated with different positions in the company. Rotations are either short-term or long-term. The most common reasons for implementing job rotation are: education, the reduction of the so-called silo effect, i.e., a lack of information exchange between individual departments, substitution for absent team members, or gradual relocation of employees to another department.

A BLF exampleIn Východoslovenská energetika Holding (Košice, power industry) processes place second in terms of their impact on employee motivation. The company’s employees are satisfied with the definitions of their roles and consider them clear. More problematic is the perception of processes in relation to work efficiency. In order to simplify processes, the company delegates decision-making powers to ordinary employees. It accelerates processes, and employees appreciate being trusted by the company.

2. ProcessesThe company’s internal processes and policies must allow maximum productivity to employees. It is important for processes to make work easier, not more difficult for employees. Decision-making processes should be clear and effective, and employees should be able to make decisions and come up with new ideas. Don’t be afraid to delegate responsibility to them and make room for trying things, learning, or failing. Communication tailored to the needs of individual departments is essential. Responsibilities and competencies should be clearly distributed. Last but not least, companies should encourage teams to gain insight into the work of other teams and learn each other better.

3. Career growth prospectsEmployee motivation grows if companies offer good opportu-nities for career growth. And we are not speaking only of vertical promotion. Equally important is to pay attention to employees’ horizontal development, i.e., fur-ther specialization in their field. Companies should promote es-pecially talented employees and do so transparently and fairly. Immediate superiors should have regular discussions with their subordinates about their development in order to identify opportunities for their growth. Employee enthusiasm can also be increased if job promotion examples are communicated within the company (for exam-ple, internships or long-term re-locations of talented employees to subsidiaries abroad).

4. Fair remunerationFor employees to see a cor-respondence between their pay and their contribution to the company, it is necessary to ensure a clear and transparent link between salary and perfor-mance, an effective communi-cation of the remuneration sys-tem, an open discussion about remuneration between managers and employees, and a suitable form of recognition. It is important that companies reward extraordinary performances and achievements. Besides that, companies should formally communicate pay rises and bo-nuses to all employees. Managers should communicate their decisions regarding salaries, they should be able to answer questions asked by their employees and assume responsibility for the whole process.

A BLF exampleLast year MetLife (Bratislava / Slovakia, insurance industry) prepared pre-printed thank-you cards which employees could, either anonymously or with their signature at the bottom, present to their colleagues explaining to them what they value and appreciate about them. They could either put them in a special mailbox or directly onto their desk. Employees could pick up the cards at the reception. The number of cards per employee was not limited.

5. RecognitionBesides financial remuneration, employees should also get adequate recognition for their contributions and job achievements. For employees to feel recognized, they must feel they contribute to the functioning of the company on a daily basis, they must be treated with justice and transparency, and their contribution must be recognized by several parties – immediate superiors, senior managers or colleagues. Companies should commend not only individuals, but also teams. In companies with a high share of motivated employees, recognition is one of the top management’s responsibilities. Top managers should be actively involved in the process of recognition across the company.

12 Natural Business Laws1. Your chance of success is higher if you have an inspiring and strategically clear vision.2. If you do not provide customers with convincing reasons for purchase, they will not make any.3. If you do not create a great and motivating workplace for your employees, the results of their work will

not be great either.4. If you want your employees to provide customers with great service, you must provide them with great

support too.5. If you want your employees to deliver great performances, you must clearly formulate your expectations

and provide them with training tools.6. Successful companies are doing what others know they should be doing, but in general, they are not

doing it.7. If you are not improving your performance consistently, you will not be successful in the long term.8. Success means that you have better problems – there will always be problems.9. Whatever you are good at is highly likely to turn into a weakness.10. Doing something great takes much longer than people think.11. Profit is good.12. Great organizations show recognition, and people who work for them experience more joy.

Ari Weinzweig, co-owner and partner of Zingerman’s

Did you know that… *

Employee motivation is much higher at the best employers than at the average ones, by as much as 23 per cent?

60 % of employees at the best employers feel that their salary corresponds with their contribution (compared to 26 % at other employers)?

The best employers are more willing to share their profits if they are doing well. It is claimed by 71 % of employees at the best employers and 40 % of employees at others?

Such employees also feel a stronger bond with the company – their own values are in compliance with the company’s (80 % compared to 49 %)?

* The conclusions of the study Best Employers Slovakia 2014

© Business Leaders Forum, July 2015Business Leaders Forum Association www.blf.sk is administered by Pontis Foundation

Zelinárska 2, 821 08 Bratislava 2 | Contact: cr@nadaciapontis.sk

Business Leaders Forum members

These recommendations reflect the conclusions of the work group “Employee Engagement and Motivation” within the Business Leaders Forum. BLF currently has the membership of 34 companies which have committed themselves to doing responsible busi-ness and inspiring others to engage in responsible business too in order to ensure the long-term prosperity of Slovakia.

Group leader: Ivana Vandlíčková, consultant and project manager of Best Employers Study Slovakia at Aon Hewitt. She specializes in increasing employee motivation and brand improvement.

A thank you for invaluable tips and views goes to the representatives of Heineken Slovensko, Metlife, Skanska SK, Tatra banka, Veolia Energia Slovensko, Východoslovenská energetika Holding and Západoslovenská energetika.

We truly appreciate the support we have received from Aon Hewitt.