10.03 – Influencing Employees The Right Way

Once you’ve recruited the staff you want, the next step is managing them effectively. Management is the art and science of getting people to do what you want them to do because they want to do it. This can be challenging, but understanding key motivators can make a significant difference.

Getting The Best Out Of Employees

To get the best out of your employees, get to know them individually. Observing and listening to your employees helps you understand their needs and motivations, making them feel valued. This understanding allows you to tailor your management approach to each person.

Here are some practical tools and techniques to help you get the most out of your employees:

Show Interest in Their Work: Engage with your employees by walking around and talking with them frequently. This approach isn’t about monitoring performance but showing genuine interest in their work.
Give Praise Often: Minimize your reaction to poor results and maximize your appreciation for good results. Positive reinforcement encourages better performance. Criticism should be constructive and coupled with positive comments.
Create a No-Blame Culture: Encourage risk-taking by being sympathetic and constructive when mistakes occur. This approach motivates employees to try again without fear of severe repercussions. Make it clear that repeated mistakes will be addressed differently.
Reduce Demotivation: Focus on preventing demotivation rather than solely trying to motivate. Most people want a sense of achievement, recognition, responsibility, and opportunities for growth. Address issues promptly to prevent dissatisfaction from spreading.

Keeping Motivation in The Family

Over 80% of small businesses are family businesses. Family businesses have unique strengths and weaknesses when it comes to motivation. Understanding these factors can help you leverage the strengths and mitigate the weaknesses.

Strengths of Family Businesses

Sense of Belonging: Family businesses often foster a sense of belonging and common purpose, leading to good motivation and performance.
Flexibility: The unity of management and shareholders allows for quick decision-making and rapid implementation of changes.

Weaknesses of Family Businesses

Resistance to Change: Family businesses may resist change, leading to stagnation and loss of market confidence.
Conflicting Goals: Balancing family and commercial goals can be challenging. Nepotism and conflicting objectives can lead to dissatisfaction among non-family employees.
Limited Impact for Non-Family Employees: Family pride may limit the roles and career prospects of non-family employees, affecting their motivation.

Address these problems to ensure your efforts in motivating employees are genuine and effective. A clear policy on family employment, succession, and ownership can help non-family members understand the business dynamics and make informed decisions about joining the company.

Setting Pay Scales

Paying employees appropriately is crucial for attracting and retaining talent. The key is finding the right balance between affordability and competitiveness.

Ground Rules for Pay

Affordability: Ensure the wage bill is sustainable for the business.
Fairness: Pay should be equitable and transparent.
Legal Compliance: Adhere to minimum wage laws and other relevant regulations.
Competitiveness: Keep pay scales in line with industry standards.

Finding the Right Pay Rate

Market Research: Read articles, job advertisements, and salary surveys to understand the going rates.
Networking: Talk to your chamber of commerce, trade associations, and other local employers.
Employment Agencies: Recruitment agencies often have up-to-date information on pay scales.

Rewarding Performance

Monetary rewards and benefits for achieving performance targets can motivate employees. Here are some common reward approaches:

Commission

Suitable for sales roles, commission rewards individuals based on the value of sales secured.

Bonuses

Paid as a lump sum for achieving specific goals. Bonuses can be linked to individual, team, or company performance

Profit Sharing

Employees receive a share of the company’s profits. This approach aligns employees’ interests with the company’s financial success.

Share Option Schemes

Employees can benefit from the increase in the company’s share value, fostering long-term loyalty

Skill or Competence Awards

Reward employees for reaching certain levels of ability. These awards can be cash, gift certificates, extra holidays, or other appreciated benefits.

Creating a Menu of Benefits

Non-salary benefits can also play a significant role in motivation. These benefits might include flexible working hours, casual dress policies, on-site childcare, personal development training, product discounts, telecommuting options, and fitness facilities. Providing a range of benefits shows that you value your employees’ overall well-being, which can enhance their loyalty and productivity.

Implementing a comprehensive and fair reward system can significantly boost employee motivation and loyalty, contributing to the overall success of your business.