the mazars external employee motivation survey...

THE MAZARS EXTERNAL EMPLOYEE MOTIVATION SURVEY2015

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Welcome to the 2015 Mazars External Employee Motivation Survey. This is the second year that we have undertaken a survey on employee motivation levels in the Irish marketplace. This year we extended our coverage to over 500 employees in Ireland.

Understanding employee motivation is imperative for organisations as it is linked to customer satisfaction, organisational performance, the achievement of organisational goals and the level of staff turnover. Last year we gathered insights into what motivates and demotivates employees. This helped to identify how to get the best out of employees and improve levels of motivation.

This year we were interested to see the impact that the improvement in the Irish economy had on levels of employee motivation. A strong economy often creates a mobile workforce with greater employee expectations in terms of role, recognition and reward. For employers this means creating an environment that provides challenging opportunities for employees while at the same time meeting their expectations. As organisations gear up to take advantage of the growth in the economy, having a strong motivated workforce is important to ensure business objectives are achieved, absenteeism levels are kept low and productivity and turnover levels are satisfactory.

We hope you find this report a valuable tool for helping to motivate and inspire employees. We would like to thank the many people who have contributed to this survey for your time and insight.

If you would like to discuss any of the issues raised in this report, please get in touch.

Keith McCarthyKeith McCarthy Director Human Resource and Organisation Development Consulting, Mazars Phone: 01 449 4472

WELCOME

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EMPLOYEE MOTIVATION LEVELS

We have seen a significant increase in the number of employees that are either motivated or very motivated this year in comparison to the prior year survey. This is an indication, perhaps, that people across the Irish economy are experiencing a more positive outlook either in the economy or in their careers. A motivated workforce brings with it significant benefits for employers including increased productivity, energy, commitment, creativity and responsibility. When an employee is motivated their expectations can be raised in terms of the desire for more challenging work, the variety of work they do, seeking promotion opportunities and financial rewards. The employer needs to meet these expectations. If the employer does not meet these expectations, employees can move to other organsiations where their expectations/demands can be met. This move is easier when the market is buoyant.

MOTIVATION LEVELS

86%

14%

of respondents are either Motivated or Very Motivated in their work

of respondents are either Demotivated or Very Demotivated in their work

of employees are more motivated than this time last year

25%of employees are less motivated than this time last year

25%

Motivation Levels in Comparison to the Prior Year

The main reasons cited for the decrease in motivation levels in comparison to the previous year are; change in reporting structure, change in role, lack of financial incentives, a lack of challenging work, a lack of communication and being involved in a business that is not evolving.

The main reasons cited for the increase in motivation levels in comparison to the previous year are due to a change in job, role, salary, an improved outlook in the economy and being part of a growing business.


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83% of respondents in the public sector / not-for-profit sector are either motivated or very motivated in their work while 88% of respondents in the private sector are either motivated or very motivated in their work. It is not surprising that the level of employee motivation is higher in the private sector than it is in the public / not-for-profit sector as the impact of the recession continues to have a strong influence on the public / not-for-profit sectors with pay, recruitment and promotion freezes. Furthermore, employers in these sectors have considerably less flexibility than their private sector counterparts to implement motivation initiatives like reward and recognition programmes and financial incentives.

83%

17% 12%

88% MOTIVATED/VERY MOTIVATED

Public/Not-for-Profit Sector Private Sector

DEMOTIVATED/VERY DEMOTIVATED

BY INDUSTRY SECTOR


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84%of females are either very motivated or motivated to do a good job

87%of males are either very motivated or motivated to do a good job

There is very little variance when motivation levels by gender are examined. 87% of male respondents and 84% of female respondents report being motivated or very motivated as they go about their daily work. This is a very positive indicator as it demonstrates there are no specific issues associated with gender and the level of motivation in the workforce. For an employer it is important to consider gender when motivating the team around you. Motivation levels can vary over the course of a career and can be influenced significantly by life inside and outside of the work place. Male or female employees can be driven by the desire for challenging work, promotions etc. or equally may decide they have reached a point in their career and are happy with the level of progression they have reached. Demotivation can often occur when an employer makes a decision that impacts something that the employee deems as non-negotiable. An example of this is the requirement to work longer hours on a regular basis which impacts their work life balance. A change like this can impact equally on either gender and how the employer communicates the change can have a significant bearing on the level of motivation.

BY GENDER


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Employees between the ages of 18 and 24 and employees over the age of 55 are the most motivated. The expectations and demands of employees can change over the span of their career. At the early stages of a career the focus is on development and career building and the employer is a catalyst to achieving this. It is not surprising therefore, that there are higher levels of motivation in this age group. From 25-44, there are greater external pressures in terms of family, purchasing a house etc. and the focus of the employee can change from intrinsic to extrinsic factors, for example financial rewards. At the same time however, the demands of their role typically have increased and so too are the demands and expectations of their employer. Maintaining motivation levels can be a little more difficult during these career stages. Often employees between the ages 45 and 55+ have settled into their career, expectations and demands are realistic and therefore the motivation levels can often be higher. This is reflected in the results of the survey with 90% of employees between the ages of 45 and 54 being either very motivated or motivated and 100% of employees over the age of 55 being either very motivated or motivated.

100%

18-24

82% 80% 90% 100%

MOTIVATED/ VERY MOTIVATED 25-34 35-44 45-54 55+

YEARS OLD YEARS OLD YEARS OLD YEARS OLD YEARS OLD

BY AGE


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13% 19% 14% 12%87% 81% 86% 88%

GREATER THAN 12 YEARSIN JOB IN JOB IN JOB IN JOB

8-12 YEARS 4-7 YEARS 0-3 YEARS

DEMOTIVATED/VERY DEMOTIVATED MOTIVATED/VERY MOTIVATED

The initial engagement with the employer (0-3 years), the greater the expectations of that employer, particularly in the context of rewarding employee loyalty. While an employee may remain motivated the level of motivation can wain where opportunities for challenging work, reward etc. are not being met. While remaining motivated, external opportunities i.e. a new role can be attractive and can present challenges in retaining employees.

BY LENGTH OF TIME IN JOB


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MOTIVATING FACTORS

Job SatisfactionJob satisfaction is again ranked as the highest motivating factor for employees in this year’s survey. 67% of the respondents to last year’s survey also believed that this was a key motivating factor for them. Job satisfaction is the highest motivational factor across all age groups and all organisation types. It is also the highest motivational factor for both males and females. Job satisfaction as a motivational driver presents both an opportunity and challenge for employers. Job satisfaction is a result, in many ways, of offering employees a role that provides the opportunity for them to feel valued and add value in their day to day working lives. However, meeting this demand on a continuous basis can be challenging for employers, as an employee’s career with an organisation can span many years.

Financial BenefitsIt is interesting to see that as the Irish economy improves, financial benefits are now seen as an important motivational factor. Nearly half of the respondents of the survey believe that financial benefits are a key motivational factor, while only 31% of respondents of last year’s survey believed that it was a key motivational factor. Furthermore, 62% of respondents to the survey believe that employers should focus more on financial benefits to help increase employee motivation levels. The employment market has become increasingly active in the last 12 months after a long period of stagnancy. Employees are still feeling the impact of the recession with pay freezes and pay cuts, increasing their monthly/annual take home pay is now getting more attention. Employees are seeking a fair reward for delivering results. Employers need to consider the financial benefits package offered to their employees in terms of the current market rates.

Promotion ProspectsEmployees between the ages of 25 and 44 rank promotion prospects as their highest motivating factors, despite this being considered the lowest motivating factor overall. Employees within this age profile are seeking to be challenged, and promotions provide this opportunity while also offering the potential to raise their profile, increase their earning capacity and gain the experience that will stand to them as they progress their career. The promotion in itself is a means to an end but brings multiple motivational benefits.

Work Life Balance Work life balance is considered more important this year than it was last year, with 44% of respondents citing this as a key motivational factor. Work life balance was equally prioritised by both men and women and demonstrates a shift in focus for a market that is beginning to stabilise allowing employees to regain focus on priorities outside of their role, rather than on the role itself. In a more stable environment, work life balance and other well-being focused initiatives begin to get greater attention from employees. For employers this means that there needs to be an increased level of visibility in this area. There is often divided opinion on flexible working options that can be made available to employees, but with the right supports, processes and oversight in place, flexible working can be very effective in improving work life balance options and increasing productivity and morale.

Achievement of Business Goals The good news for employers is that the achievement of business goals is the 4th main motivating factor according to employees. This reinforces the need for employers to ensure there is a strong alignment between an employee’s individual goals and those of the organisation. This is a very simple principle that is often missed, if it is not structured and planned in a coherent way.

MAIN MOTIVATING FACTORS

MOTIVATING FACTORS

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MOTIVATING FACTORS

67%PERSONAL

SATISFACTION

49%

36% 33% 25%

44% 41%FINANCIAL BENEFITS

PRAISE AND RECOGNITION

ORGANISATION CULTURE/PEOPLE

PROMOTION PROSPECTS

WORK LIFE BALANCE

ACHIEVEMENT OF BUSINESS

GOALS

ABOUT MOTIVATING FACTORS

MOTIVATING FACTORS

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DEMOTIVATING FACTORS

24%POOR WORKING ENVIRONMENT

26%UNCHALLENGING

WORK

28%LACK OF

A FORMAL PROGRESSION

PLAN

56%LACK OF PRAISE

49%DEMOTIVATING MANAGEMENT

STYLE

44%NOT DEALING

WITH THE UNSATISFACTORY

PERFORMANCE OF OTHERS

35%FINANCIAL REWARDS

(PAY BONUS)

MAIN DEMOTIVATING FACTORS


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Leadership and Management teams should consider the following key questions:

• Are we consistent in our approach to managing people?

• Are we rewarding the preferred behaviours?

• Are we equipped with the right management and leadership skills?

• Are our support processes effective in balancing the needs of managers and employees?

Over half (56%) of the respondents believe that a lack of praise and recognition is a demotivating factor. This was also the highest demotivating factor in last year’s survey (51%). Nearly half (49%) of respondents believe that having a demotivating management style is a demotivating factor. 59% of the respondents to last year’s survey also believed this to be the case. In addition, 44% of respondents believe that not dealing with the unsatisfactory performance of others is a demotivating factor. This was 47% last year.

It is interesting to note that the top three demotivating factors reflect leadership / management style. A demotivating management style reflects the behaviours and actions of a manager and is linked very closely to not providing recognition or praise and not dealing with the unsatisfactory performance of others. Ways to help ensure management style is more motivational for employees includes ensuring that there is equity in workloads, clearly defined expectations in terms of deliverables and behaviours, formal and informal feedback on work and recognition of work completed. These items are all in the control and influence of the organisation and the leaders / managers and are not dependent on the external environment.

ABOUT DEMOTIVATING FACTORS


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MANAGEMENT’S ROLE IN ENCOURAGING MOTIVATION

Our survey has found that 64% of respondents believe that leadership and management teams are not doing enough to motivate employees.

67%

57% 49% 62% 59% 27% 25%

40% 32% 31% 30% 17%

WELL-BEING PROGRAMMES

RECOGNITION AND REWARD PROGRAMMES

SALARY INCREASES

PROMOTION OPPORTUNITIES

TRAINING AND DEVELOPMENT

OPPORTUNITIES

INCREASED ANNUAL/

FLEXIBLE LEAVE

What have management already done to increase motivation and what should they prioritise? ALREADY IMPLEMENTED SHOULD PRIORITISE

MANAGEMENT’S ROLE

MANAGEMENT’S ROLE IN ENCOURAGING

MOTIVATION

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MANAGEMENT’S ROLE IN ENCOURAGING MOTIVATION

Training and development is clearly being used by employers to increase motivation. This was a similar trend last year. The good news for employees is that employers are seeking to prioritise salary increases and recognition and reward programmes. This is typical in a market that is becoming increasingly buoyant as the economy improves.

Other mechanisms respondents believe that employers should prioritise to help improve motivation levels, include:

• Enhanced communication and feedback,• Recognising employee efforts and reward accordingly,• Focusing on team building,• Enabling employees to get more involved in strategy development and decision making, and • Performance management.

Motivating people is made easier with support frameworks that reinforce communication and engagement. Implementing some or all of the mechanisms above give mutual opportunities for managers and staff to build engagement, a bi-product of a motivated team. An effective performance management system (which can take various formats, including linking to reward and recognition) can provide a mechanism for communication, feedback and engagement. This process can help reinforce good performance and give managers an opportunity to deal with below standard performance. Similarly, team building is important to develop a strong and cohesive team ethos. A strong team ethos is proven to increase morale, productivity and business results. Developing a team ethos can be achieved when action is taken to build the following within the team:

• Goal clarity – are the team clear on the plan? What are they working towards?• Role clarity – is each team member clear on their role in helping to achieve the plan?• Process – are the processes in place to facilitate goal and role clarity; planning, communication, performance management etc.?• Dynamic – are the team relationships effective in terms of the quality of interpersonal engagement, trust and openness?

ABOUT MANAGEMENT’S ROLE

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MANAGEMENT’S ROLE IN ENCOURAGING

MOTIVATION

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WHAT THESE RESULTS MEAN FOR EMPLOYERS?

• The importance of financial benefits in motivating employees is increasing. After a long period of stagnancy the employment market is becoming more fluid with employees increasing their focus on the financial benefits relating to their role. Achieving this with their current employer or with a new employer will be at the forefront of their mind. Employers need to consider the financial rewards they offer to their employees. This should be undertaken in the context of market rates, changes to pay in the last number of years, and employees of critical importance to the organisation.

• As the economy improves, it is no surprise that job security is no longer considered a top priority for employees. Losing critical team members presents a number of business challenges in terms of business/customer continuity, loss of organisational knowledge and expertise, as well as having a negative impact on morale and productivity. In some cases it can be a positive experience for the employer as it encourages change and refocus. Employers need to develop strategies to retain people, capture organisation knowledge and plan for succession.

• A key reason for employees staying in their current job is the fact that they are being provided with challenging and interesting work. This is important and an easy motivating tactic for employers. Stretching objectives i.e. agreeing objectives with employees that are achievable but will challenge them and at the same time support their career development and growth can be mutually beneficial. It demonstrates the organisation’s commitment to the development of their employees’ potential.

• Employers need to recognise the link between their management style and key motivating / demotivating factors – the top three demotivating factors identified by employees reflect leadership / management style. This can be influenced directly by the leadership and management team in an organisation. Development of management and leadership skills is definitely an area worthy of focus in 2015.

Tapping the potential of an already motivated leadership and management team, with the right skills can have a corresponding impact on people, processes, productivity and business results.

• Job satisfaction was rated as the main motivating factor – therefore employers

must learn what drives each individual team member. Providing informal and formal mechanisms for communication and engagement will help provide an opportunity for employers to deepen their understanding of the personal satisfaction drivers of employees.

• Motivating employees does not have to be costly, e.g. challenging employees, recognising their contribution, providing feedback, involving them in decision-making, communicating business goals and empowering them are important, achievable and can be delivered with minimum investment.

• There is a misalignment between the mechanisms that are being used to motivate employees and the mechanisms that employees believe will motivate staff. We have seen that employers are largely focusing on training and development as a key mechanism for motivating employees. However, employees are seeking financial rewards and recognition and reward programmes to increase their motivation levels. While this might be a challenge for employers, it is important to engage with employees on these areas.

• Motivated employees are more likely to recommend their organisation to others as a great place to work. Our research shows that two-thirds of respondents would recommend their organisation as a great place to work. The more motivated an employee, the greater chance an organisation has that their employees will talk positively about their experience in the organisation. This can bring multiple positive benefits including enhanced market reputation which can impact both on business results and the recruitment of high calibre employees.

WHAT THESE RESULTS MEAN FOR EMPLOYERS?

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ABOUT THE PARTICIPANTS

51%MALE

49%FEMALE

GENDER


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32%SENIOR

MANAGER/ DIRECTOR

31%MANAGER

10%FRONTLINE MANAGER/

SUPERVISOR

27%STAFF MEMBER

JOB TITLE


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3%

18-24

23% 35% 26% 12% 1%

25-34 35-44 45-54 55-64 65+YEARS OLD YEARS OLD YEARS OLD YEARS OLD YEARS OLD YEARS OLD

AGE PROFILES


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0-3 years 4-7 years 8-12 years 13+ years

26% 24% 18% 32%

TIME IN ROLE


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SME

Large Private Company/MNC

Not-for-Profit

Public Sector

Partnership

Other

22%

27%

13%

26%

6%5%

INDUSTRY


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>11 Employees

11-100 Employees

101-500 Employees

501-1000 Employees

>1001 Employees

30%

26%

14%

19%11%

EMPLOYEE NUMBERS


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ABOUT MAZARS HR AND ORGANISATION DEVELOPMENT PRACTICE

Mazars Can Help With The Following Services

HR Audit & ComplianceThe complex field of employment law presents an array of challenges for employers. Mazars offer HR auditing and compliance services to clients in order to ensure that their employment practices, policies and procedures comply with current employment legislation and best practice. We make use of our proprietary HR Audit Tool to undertake a comprehensive review of the current approach to HR within the organisation, identifying priority areas for improvement in order to minimise exposure to risks from non-compliance. Our services include:

. HR Audit (legislation & best practice)

. Employee handbook development

. Drafting contracts of employment

. Development of HR policies & procedures

. HR Due Diligence

Organisation Change & TransitionOrganisational change can be a complex process presenting a number of challenges to employers if not managed effectively. Mazars support clients in aligning their strategic change initiatives to the operational changes that occur at all levels, building HR capabilities to support the transition while minimising disruption to the organisation. Our services include:

. Leading and supporting change projects

. Cultural alignment

. Organisation design

. Downsizing / redundancy

. Business process re-engineering

Building & Developing CapabilityOrganisations are increasingly recognising the value to be gained from building and developing the capabilities of their workforce. Mazars work closely with clients to develop tailored programmes to leverage the internal capabilities of the organisation to maximise employee potential and achieve sustainable organisational performance. Our services include:

. Recruitment and selection

. Leadership and management development

. Employee engagement and retention

. Competency framework development

. Performance management

. Talent management

HR / Organisation Development Operation SupportMazars offer a range of additional HR and Organisation Development Operational Support services, depending on our clients’ individual needs. Other support services provided include:

. HR Secondment / outsourcing

. HR employment legislation advice

. HR investigations

. Development of HR metrics / scorecards

ABOUT MAZARS HR AND ORGANISATION

DEVELOPMENT PRACTICE

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CONTACTS

For further information contact

Mazars

Dera McLoughlinPartner, ConsultingTel: +353 1 449 4485Email: [email protected]

Keith McCarthyDirector, HR & Organisation Development ConsultingTel: +353 1 449 4472Email: [email protected]

Harcourt CentreBlock 3Harcourt RoadDublin 2IrelandTel: +353 (0)1 449 4400Fax: +353 (0)1 475 0037

Mazars PlaceSalthillGalwayIrelandTel: +353 (0)91 570 100Fax: +353 (0)91 583 242

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