Motivating Career Satisfaction and

Retention

Motivating Career Satisfaction and

Retention

Allison RossettModified J. Marshall 2005

What causes employees to leave an organization?What causes employees to leave an organization?

“People don’t quit companies, they quit bosses.”

Length of an employee’s stay is determined by his relationship with his immediate supervisor.

Managers who are retention experts will improve employee engagement and reduce turnover.

Managers as Retention ExpertsManagers as Retention Experts

American Express They teach managers how to nurture employeesManagers are held accountable; retention rates are part of their performance reviews.Interestingly, Charles Schwab has a similar program.

Attrition is an issue, for sureAttrition is an issue, for sure

Today, employee loyalty tends to be to their career, not to their employer

According to recent CNN/Money research,

8 of 10 employees plan to look for a new job when the

economy improves.

- attributed to a Charles Schwab director of human resources

Employees will resist competitive offers if they are comfortable in their current positions, have a strong working relationship with their managers, and are confident they can further develop their skills.

Why do employees stay?Why do employees stay?Employees know what is expected of themEmployees have the materials and

equipment to support skills and talentsEmployees do what they do best every dayEmployees know that someone at work

cares (preferably their manager or supervisor)

Employees’ co-workers are committed to quality

Employees are given opportunities to learn and grow

The Gallup Organization found 6 items that are strongly linked to employee retention.

Are they more likely to stay if provided with training and development

opportunities?

Are they more likely to stay if provided with training and development

opportunities?

- Research by the Saratoga Institute reported in Olesen, 1999

“We found that if the American workforce has the training it wants, 12 percent will leave their current company anyway. However, if they don’t get the training, 41 percent will leave.”

More Support for a Link with Training & Development

More Support for a Link with Training & Development

57% of managers reported education programs enhanced company loyalty

Learning culture had a substantial impact on job satisfaction, which in turn affected turnover significantly

So-- let’s look at how to boost satisfaction and career mo

57% of managers reported education programs enhanced company loyalty

Learning culture had a substantial impact on job satisfaction, which in turn affected turnover significantly

So-- let’s look at how to boost satisfaction and career mo

Definitions for ‘career’

[n.] a swift movement, impetus, as in a horse’s headlong career

[n.] progress through life with respect to one’s work

[n.] a means of earning a living [v.] to move swiftly, erratically, as in,

“He careered from one side of the road to the other.”

Careerist: [n.] an ambitious person set on success, even at other’s expense

We want employees to try, to persist,

to be motivated in their work,

now more than ever.[Work motivation: arousal, direction

and maintenance of effort at work]

Why now more than ever?

We want employees to try, to persist,

to be motivated in their work,

now more than ever.[Work motivation: arousal, direction

and maintenance of effort at work]

Why now more than ever?

Why the interest in career motivation now?

Why the interest in career motivation now?

Fewer middle managers; more decision making by employees

More knowledge work; more reliance on choices by employees

Great organizations perceive themselves as in a war to attract and keep talent

Worker perceptions regarding lack of security, outsourcing, change

Global competitiveness and need for excellence.

Fewer middle managers; more decision making by employees

More knowledge work; more reliance on choices by employees

Great organizations perceive themselves as in a war to attract and keep talent

Worker perceptions regarding lack of security, outsourcing, change

Global competitiveness and need for excellence.

Commitment to TalentCommitment to TalentThe fourth annual High Performance Workforce Study (2002/2003) conducted by Accenture, is based on interviews with 244 senior executives in the United States, Europe and Australia. Its goal was to identify trends and other factors that are currently affecting the performance of workforces and businesses.

The fourth annual High Performance Workforce Study (2002/2003) conducted by Accenture, is based on interviews with 244 senior executives in the United States, Europe and Australia. Its goal was to identify trends and other factors that are currently affecting the performance of workforces and businesses.

Commitment to TalentCommitment to Talent

… while nearly two-thirds (65 percent) cited "developing an effective leadership capability" and half (49 percent) cited "creating an organization and culture that adapts effectively to change" as very important organizational capabilities, only 8 percent in each case said their organizations are performing very well in these areas. Furthermore, just 17 percent of respondents described the overall skill level of their entire workforce as industry-leading.

… while nearly two-thirds (65 percent) cited "developing an effective leadership capability" and half (49 percent) cited "creating an organization and culture that adapts effectively to change" as very important organizational capabilities, only 8 percent in each case said their organizations are performing very well in these areas. Furthermore, just 17 percent of respondents described the overall skill level of their entire workforce as industry-leading.

Ponder this!Ponder this!

The Accenture survey also found that, in virtually every case, the mean satisfaction rating with the HR and training functions is higher among respondents who outsource all of a particular training or HR activity, such as recruiting, payroll, training content development or training delivery, than among those who outsource none of that activity.

The Accenture survey also found that, in virtually every case, the mean satisfaction rating with the HR and training functions is higher among respondents who outsource all of a particular training or HR activity, such as recruiting, payroll, training content development or training delivery, than among those who outsource none of that activity.

Theories of Career MotivationTheories of Career Motivation

Internal theories of motivation, all influenced by Maslow. These 4 theories relate to the individual’s view of self, work and workplace:1. Needs

Herzberg’s 2 Factor TheoryAlderfer’s ERG Theory

2. Expectancy3. Equity4. Goal

Internal theories of motivation, all influenced by Maslow. These 4 theories relate to the individual’s view of self, work and workplace:1. Needs

Herzberg’s 2 Factor TheoryAlderfer’s ERG Theory

2. Expectancy3. Equity4. Goal

Theories of Career MotivationTheories of Career Motivation

1a.Herzberg’s 2 Factor Needs Theory 1a.Herzberg’s 2 Factor Needs Theory

Neutral Very Satisfied

Satisfaction/contentcontinuum

Very dissatisfied NeutralDissatisfaction/hygiene

continuum

Satisfaction continuum is based on the nature of the job, such as its purpose, challenge, depth, growth opportunities.Dissatisfaction continuum is based on work context, environment, |such as salary, noise, commute

Theories of Career MotivationTheories of Career Motivation

1b.Alderfer’s ERG Theory 1b.Alderfer’s ERG Theory

Growth Needs

Relatedness Needs

Existence Needs

Becoming more

Interpersonal factors

The basics, like pay, benefits

•If unsatisfied, the need grows stronger•If satisfied, higher level needs increase•If higher level need unsatisfied, quest for lower levels increase

Apply Herzberg and AlderferApply Herzberg and Alderfer1 A Korn/Ferry study of executives found that the

two dominant reasons for job change to be ‘more responsibility’ and ‘greater challenges.’ Discuss using Herzberg.

2 An auditor has been in his job for 11 years. He’s been doing the same work, has been to no classes, and attended one conference 6 years ago. His comment, “No problem. I go home on time, have a dependable paycheck, nobody bothers me much at all.” Discuss using ERG theory.

3 Plagued with high error rates and turnover, a financial institution boosted pay and benefits. They did not see a jump in satisfaction and motivation. Why might that be, according to Herzberg?

1 A Korn/Ferry study of executives found that the two dominant reasons for job change to be ‘more responsibility’ and ‘greater challenges.’ Discuss using Herzberg.

2 An auditor has been in his job for 11 years. He’s been doing the same work, has been to no classes, and attended one conference 6 years ago. His comment, “No problem. I go home on time, have a dependable paycheck, nobody bothers me much at all.” Discuss using ERG theory.

3 Plagued with high error rates and turnover, a financial institution boosted pay and benefits. They did not see a jump in satisfaction and motivation. Why might that be, according to Herzberg?

Theories of Career MotivationTheories of Career Motivation

2.Vroom’s Expectancy TheoryPeople are mindful. They think about the implications of their actions and will choose performance that leads to valued outcomes and match their perception regarding their abilities.

Value of outcomes X Expectancy= Motivation

2.Vroom’s Expectancy TheoryPeople are mindful. They think about the implications of their actions and will choose performance that leads to valued outcomes and match their perception regarding their abilities.

Value of outcomes X Expectancy= Motivation

Theories of Career MotivationTheories of Career Motivation

3.Equity TheoryIf individuals perceive a gap between the rewards they receive and their effort(s), they are motivated to do less.The greater the perception of gap, the greater the reduction in motivation to perform.

3.Equity TheoryIf individuals perceive a gap between the rewards they receive and their effort(s), they are motivated to do less.The greater the perception of gap, the greater the reduction in motivation to perform.

Individual’s Effort,Input

and Outcomes

Referent’s Input and OutcomesGAP???

Theories of Career MotivationTheories of Career Motivation4.Goal Theory

The individual’s conscious goals influence motivation. First, employees must understand their goals. Second, they must be challenged by them, without being overwhelmed. Where possible, they should participate in selecting goals.

Goal setting process + goal clarification + goal strength ---------> outcomes

4.Goal TheoryThe individual’s conscious goals influence motivation. First, employees must understand their goals. Second, they must be challenged by them, without being overwhelmed. Where possible, they should participate in selecting goals.

Goal setting process + goal clarification + goal strength ---------> outcomes

It’s not just a pile of theories.

The theories influence programs.

It’s not just a pile of theories.

The theories influence programs.

From Theory to PracticeFrom Theory to Practice 1a. Herzberg’s Two Factory Theory

Performance analysis Climate studies Boost pay, benefits Environmental changes Job enrichment, redesign Training & development Cross-training

1b. Alderfer’s ERG Theory

Hygiene basics first Team development Mentoring/coaching pgm Job enrichment, redesign Participatory programs Training & development Cross-training

1a. Herzberg’s Two Factory Theory

Performance analysis Climate studies Boost pay, benefits Environmental changes Job enrichment, redesign Training & development Cross-training

1b. Alderfer’s ERG Theory

Hygiene basics first Team development Mentoring/coaching pgm Job enrichment, redesign Participatory programs Training & development Cross-training

From Theory to PracticeFrom Theory to Practice 2. Vroom’s Expectancy Theory

Selection Mentoring, coaching Job rotation Training & development Information support

3. Equity Theory

Pay for performance Bonus programs Employee satisfaction studies and actions Recognition programs Participatory programs New referents Job redesign, enrichment

2. Vroom’s Expectancy Theory

Selection Mentoring, coaching Job rotation Training & development Information support

3. Equity Theory

Pay for performance Bonus programs Employee satisfaction studies and actions Recognition programs Participatory programs New referents Job redesign, enrichment

From Theory to PracticeFrom Theory to Practice 4. Goal Theory

Goal setting Strategic planning MBO Feedback systems Performance management systems Quality circles Training Team development Self assessment and management Participative QWL programs

4. Goal Theory

Goal setting Strategic planning MBO Feedback systems Performance management systems Quality circles Training Team development Self assessment and management Participative QWL programs