LABOR MOTIVATION FACTORS OF EMPLOYEES OF STATE-OF-ART ORGANIZATION
LABOR MOTIVATION FACTORS OF EMPLOYEES OF STATE-OF-ART ORGANIZATION
Alexey Karpov
PhD in Psychology, Moscow City University,
Russia, Moscow
Today, despite numerous attempts by managers to control and direct the labor motivation of employees, there is no common understanding of how to do this. All approaches to employee motivation used in organizations do not so much control it, but create incentives that are uniform for all, the impact of which on different employees will be different [5]. Obviously, each employee has his own set of motivation factors, the effect of satisfying which will be maximum for him, while the combination of these incentives will not have a motivating effect on his colleagues who have a different set of factors. Regardless of the different reasons for motivating or demotivating an employee, the question of how to direct motivation efforts in such a way to increase labor productivity and employee loyalty to the organization remains important for study [3].
In the currently existing theories of motivation, including labor motivation, despite great variety, there is no single approach explaining the mechanisms of motivation, the stages of its formation, and, most importantly for organizational psychology, the impact on labor behavior [2]. In the generally accepted intra-organizational perception, “ Motivation” is a person’s motivation for action, his driving force that controls behavior person, sets his direction.
The system of motivation in the company is a set of tangible and intangible incentives that are designed to give people what they most want to get from work in exchange for the effective solution of business problems with high labor productivity. A properly built motivation system is the basis for coordinating the interests of the employee and the company. Thanks to a competitive motivation system, the company is able to attract the most talented specialists and retain them.
In recent years, the expectations of employees from employers have changed significantly. If yesterday workers were attracted by large, stable hierarchical corporations, today they are dynamic, developing structures with a variety of tasks; if it was previously considered prestigious to build a career in one organization, comprehending the features of the enterprise culture from year to year, now it is customary to build a career “on top” of organizations; if earlier employees planned their careers with a horizon of 20-30 years, now planning is no further than a 3-year horizon. Organizations are also have been changing their approach to managing and retaining valuable employees. The principle of social equality no longer dominates in companies, the efficiency of employees comes to the fore, so the main investments are made in the most efficient and professional, and not in loyal and responsible ones. The perception of personnel costs is changing. Personnel costs are no longer hard-to-recover costs, as previously thought, but are investments in the future growth of the company [4].
Against this background, the approach to managing employee motivation is also changing. Employers no longer seek to create incentives that encourage people to work in their organization better and for as long as possible, less important is the creation of conditions that meet the needs of workers. The most important motivation factors are the interest in fulfilling the organization's goals, ownership of the company's results, striving for outstanding results in one's work, showing initiative – all this is the engagement.
Generally defined, engagement is the physical, emotional, and intellectual state that motivates employees to do their work better. Obviously, many successful companies are interested in creating high employee engagement. In a state of such emotional upsurge, interest, people work efficiently, the emotional environment in the team remains healthy, and competitive advantages increase.
In recent years, many publications have appeared on the relationship between engagement and the company's advantages. Data from consulting companies Kincentric (formerly Aon Hewitt), Gallup International, Hay Group and Towers Watson, who have studied the engagement of millions of employees from thousands of organizations of various industies, shows the direct impact of employee engagement on the bottom line financial results, as well as other key business indicators of companies. So, compared with the indicators of companies with a low level, a company with a high level of engagement:
- 22-43 % higher shareholder return;
- 12% higher share price;
- 17,5% higher operating income;
- $27,000 more annual sales per employee;
- $3,800 higher annual profit per employee;
- 10% higher level of customer satisfaction;
- 18-21% higher labor productivity;
- 2 times more promising applicants for each of the open vacancies;
- 50-65% lower staff turnover;
- 2.5 times less duration of stay of employees on sick leave;
- 28% less conflicts between employees and management;
- 41% lower manufacturing defect rate;
- 48% fewer accidents caused by safety violations;
- 40% less number of victims due to safety violations [6].
Based on the presented data, there is no doubt that the study of engagement, which is a manifestation of high labor motivation, and its subsequent development should become one of the strategic goals of the HR function of a modern organization.
One of the tasks of studying the attitude to work of 951 employees of a large modern company was to determine the universal patterns of engagement and motivation of modern workers. The first results and their analysis showed a high influence of engagement, job satisfaction, and a number of other studied motivation parameters on business indicators, in particular, on labor productivity and staff turnover. As a result of the study, including factor and cluster analysis, 6 factors of labor motivation were found: Rewards, Working conditions, Team, Head, Work content, Development opportunity, - combining the basic needs and motives of modern workers, the structure of labor motivation is described [1].
The “Rewards” factor includes both the motives for obtaining guarantees of stability and social security, the motives for fairness in assessing labor, and the motives for status.
The “Working Conditions” factor is associated with the provision of comfortable working conditions, the provision of all necessary resources for the effective performance of work tasks, as well as the optimal working regime, schedule and location of the employer. "Rewards" and "Working conditions" are the basic factors of employee motivation, the aspects of which are usually known to the employee even before starting work in the organization, and are an integral part of the contract between the company and the employee.
“Team” is a factor that combines the motives of recognition and authority, the motives for obtaining professional and psychological support from colleagues, the motives for communicating with people of a certain social, psychological and organizational culture level.
The “Manager” factor, on the one hand, also includes the motives for obtaining support, recognition, mutual trust and a certain level of communication with the leader, on the other hand, it is the compatibility of the manager’s management style and the employee’s expectations: timeliness and quality of feedback, trust and delegation, exactingness and incentives for high performance. "Team" and "Leader" - social factors of motivation - cover the issues of satisfaction with social status, communication quality, relationships and interactions in the organization at different levels.
The “Work content” factor includes motives that characterize the working activity itself: interesting and diverse tasks, the level of decision-making and the importance of job for the development of the organization, the applicability of previous experience, and the balance of work and non-work tasks. “Development opportunity” combines the motives for career growth, future opportunities provided by the pace of development of the organization, as well as assistance in training and professional development.
The right determination of the leading factor of employee labor motivation and its management through stimulation of the identified factor form a high employee engagement, which helps to strengthen loyalty to the employer and increase labor productivity, which is extremely important for the effective management of a state-jf-art organization.
References:
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- Schaufeli, V., Dijkstra, P., & Ivanova, T. (2015). Uvlechennost' rabotoy: Kak nauchit'sya lyubit' svoyu rabotu i poluchat' ot neye udovol'stviye [Passion for work: How to learn to love your job and enjoy it]. Moscow: Kogito Center.
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- Svergun, O. Yu. (2012). Vovlechennost' personala: tsennoye preimushchestvo [Personnel involvement: a valuable advantage]. Human Resources Handbook, 8, pp. 56-64.
- The Gallup Organization (2006). The Gallup Organization: Engagement Predicts Earnings Per Share. Washington. [online] Available at: http://www.sheila-scott.co.uk/articles /Engaged-scott-final.pdf [Accessed 16th May 2017].