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Employee Motivation

Employee Engagement vs. Employee Motivation

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Are Employee Engagement and Employee Motivation the Same Thing?

Frank Sinatra said it best in his classic Love and Marriage, “you can’t have one without the other.” Both are crucial to driving your employees to do big things for your business. Before we dive in, it’s important to explore the idea of motivation itself.

Intrinsic Motivation vs. Extrinsic Motivation

In general, motivation describes the force that compels people to act, or decide to take a specific course of action. However, according to a University of Rochester study published in American Psychologist, not all motivation is the same. For example, when employees are intrinsically motivated, they’re passionate about their work because they either really enjoy doing it, or they enjoy the pride and satisfaction that comes from a job well done.

Do you know what your employees really want?

On the other hand, when employees are extrinsically motivated, they’re spurred to action by external forces, which can be either positive or negative in nature. These employees typically act in order to gain certain rewards (like time off or a bonus) or to avoid unpleasant circumstances (like an angry boss or being terminated).

You probably can see where this is going.

The Relationship Between Motivation and Engagement

Typically, engaged employees are intrinsically motivated. They love what they do, strive to master new skills and are enthusiastic about applying their talents. And there’s a lot to be said for how an engaged workforce can boost any company’s bottom line. According to Aberdeen Group, having engaged employees increases customer loyalty by 233 percent and revenue by 26 percent annually.

Conversely, if your employees are extrinsically motivated, they more than likely need constant prodding in order to produce. This approach may work for a short time, but it’s unsustainable in the long run. Not every task or project can be rewarded with cash or perks. In addition, if employees’ sole source of motivation is fear-based ­– like fear of displeasing their manager or losing their jobs – they can burn out quickly. In that case, what’s left is a group of disillusioned, disengaged employees who can impact the bottom line, too, but negatively. In fact, Harvard Business Review reports that just one of them can cost a business approximately $12,000 per year.

How to Spark and Build Intrinsic Motivation

Luckily, how employees are motivated isn’t written in the stars. Managers can spark intrinsic motivation in anyone – and in the process, create an engaged employee – by providing members of their team with:

  • Defined roles: Simply put, employees who understand what they are supposed to do tend to be more productive than those who do not. Ensure employees are aware of the responsibilities and duties of their role.
  • Goals: When employees have something to strive toward, they become passionate about tackling the tasks they need to in order to get there. And that feeling of progress is a positive, intrinsic motivator that appeals to almost everyone.
  • Purpose: Employees want to know that what they do matters. For millennials, who are on track to make up the majority of today’s workforce by 2020, this is especially important. Show them how their contribution fits into the bigger picture.

 

For example, if you have video testimonials that cover some of your clients’ biggest success stories, share them. Inspire employees by showing them the difference your organization makes in the everyday lives of the customers you serve.

  • Recognition: Just because employees are intrinsically motivated doesn’t mean they don’t require extrinsic rewards to keep their fire burning. The reason why that doesn’t make them extrinsically motivated is that they’ve already done the job when the reward comes, as opposed to needing the reward to do the job.

Recognition can come in the form of bonuses, awards or even a sincere “thank you.” Showing your appreciation for the good work your engaged employees do goes a long way toward fueling their passion and performance for years to come.

Intrinsic motivation is an important ingredient in the stew of employee engagement, and employee engagement is critical to competitive success. Fortunately, inspiring your workforce to passionate productivity is possible with the right strategy. Try to separate them, it’s an illusion, and you will come to this conclusion.


Brad Richardson

by Brad Richardson


Author Bio: Mr. Richardson joined Paycom in 2005 and has served as its Vice President of Operations since 2009. With more than 25 years’ experience in leadership roles, including managing a $100 million commercial real-estate portfolio at MetLife and two car dealerships, Brad focuses on developing future leaders as well as refining processes in order to support Paycom’s growth. He earned his bachelor’s degree from Southern Methodist University and his MBA from the University of Texas at Dallas. Outside of work, he enjoys playing golf, traveling and spending time with his wife and three children.

New Leaders

Businesses in 2017 Need New Leaders. Are You Ready?

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Businesses in 2017 Need New Leaders. Are You Ready?

Companies are growing and the need for new leaders is growing with them.  A recent Yahoo Finance article noted that workers are returning to the workforce in droves, with the employment-to-population ratio hitting 60 percent — the highest it has been since February 2009. Consequently, if you ask businesses what they need from employees in 2017, the answer of more leaders soars to the top of list after list.

Leaders Needed

Deloitte’s 2017 Global Human Capital Trends study noted, “Leadership development continues to be a significant challenge for companies around the world, as the transition to the new digital organization creates even larger leadership gaps.”

With the speed at which technology moves, being at the helm of a team can feel overwhelming, especially when a leader’s daily to-dos often overtake precious time that could be spent working strategically to hone team members’ skills.

However, when it comes to succeeding in business, nothing will put you on the fast track quite like efficiently meeting an immediate need like building leaders. Here are two simple techniques to get you started.

  1. Embrace Online Training

Baby boomers, Gen Xers and millennials are more alike than you think. With the breakneck speed of the internet, everyone must be perceptive to change. An openness toward online learning will serve you well as you lead your team through the information age.

“The most critical need for most organizations is for leaders to develop digital capabilities,” said the authors of Deloitte’s 2017 study. “Today only 5 percent of companies feel they have strong digital leaders in place.”

Additionally, in a recent article in The Economist, author Andrew Palmer called lifetime learning an “economic imperative” and said, “Technological change demands stronger and more continuous connections between education and employment.”

Many businesses are beginning to embrace training by offering employees robust opportunities through learning management systems. Those interested should start by taking advantage of any on-demand learning their employers offer. Figure out where your learning pain points are and dig into a training module that transforms your professional and personal knowledge.

  1. Value Teamwork

Historically, American employees have always worked hard, diligently climbing each rung of the corporate ladder. However, the old, “me-focused” way of doing business is outdated.

Teamwork is crucial to today’s leaders because innovation happens on a minute-by-minute basis. Leaders of today have to look for strengths in others and bolster team successes over individual achievements. You’ve heard the phrase, “a rising tide lifts all boats?” Workers should focus their time ensuring their tide is composed of high-achieving, collaborative team members, and then watch the rest of the boats rise.

By valuing online learning and working as a team, today’s organizations can accomplish their 2017 leadership development goals and be better prepared for the future.

Posted in Blog, Featured, Leadership

Jeff York

by Jeff York


Author Bio: Jeff York, Paycom’s chief sales officer, has more than three decades of sales experience and has held a variety of sales management positions; prior to joining Paycom In 2007, York spent 12 years with a legacy payroll provider, where he held a variety of sales management positions including vice president of sales for the major accounts division. York, a Texas Tech University graduate, also holds an MBA from Baylor University’s Hankamer School of Business.

4 HR Reports for the C Suite

4 Reports Every HR Pro Should Bring to the C-Suite

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4 Reports Every HR Pro Should Bring to the C-Suite

As an HR leader, you are the trend master.

You know that businesses generate more data than ever. Because of this, they have developed an acute desire for metrics.

You know that even though the goals of businesses continue to be product- and output-centered, the way business happens has shifted.

And you’re right. According to a 2017 Deloitte survey of more than 10,000 HR and business leaders, “88 percent of companies believe they need to redesign their organization to succeed in the digital age.”

However, as a leader, it’s your job to understand what’s behind the buzz, figure out the best way to capitalize on what’s trending and provide cogent recommendations to a C-suite executive looking for answers.

Reports provide quick, coherent overviews from employee retention to hire quality; they help HR leaders dial into the metrics that matter. Although every business is unique and requires different measurements from HR, there are few metrics and reports that may place businesses ahead of the digital curve while still meeting and then exceeding senior leadership’s expectations. Here are four HR reports the C-suite really wants to see.

  1. The Cost Per Hire report

As the saying goes, you’ve got to start somewhere. Understanding how much it costs your team to hire each employee is the bedrock from which other metrics originate. It’s surprising how many businesses neglect this metric, when according to Glassdoor, “It’s crucial to have a solid estimate of your cost per hire (CPH). Knowing this figure can help you make smarter investment decisions, define your referral bonuses and save your organization money in the long run.”

One helpful formula for calculating CPH is:

(Internal Costs) + (External Costs) / Total Number of Hires in a Time Period

 Once you discover your company’s CPH, other metrics, such as employee ROI and quality of hire, can be built from this cost, which provides a clear picture for how that employee investment is really performing. 

  1. The Quality of Hire report

The real business MVP of 2017 is the employee. Consequently, understanding the effectiveness of your hiring process is crucial to the health of your business. That’s where a quality of hire report comes in. Quality of hire metrics can be tricky to identify and are continuously evolving, but one useful formula pulled from HR Daily Advisor is:

(Performance + Retention + Productivity) / N

For purposes of this formula:

  • Performance equals the average new-hire performance rating
  • Retention equals the percentage of new hires still employed after a year
  • Productivity equals the percentage of the new hires achieving full productivity scores during a desired period
  • N is the number of indicators used in the formula

Although some quality metrics are subjective, they are useful when consistently reviewed. Called the “holy grail of recruiting,” figuring out your business’s quality of hire numbers minimizes hiring problems and maximizes employee ROI. 

  1. The Turnover Rate report

According to a recent article in Fortune, “The biggest priority, and concern, for business leaders in 2017 will be retaining employees in a competitive talent marketplace.” With companies pulling out all the stops in hopes of keeping talent and enticing new candidates, today’s job market is fierce.

Turnover reports outline the number of employees who have left, and then dig into whether the number is higher or lower or than normal. High turnover rates exacerbate hiring costs and lower productivity and morale; therefore, a consistent report is a good way to gauge the health of a business. Monthly turnover metrics also inform upper management of any significant trends they may need to address. 

  1. The Revenue Per Employee report

 Senior executives make decisions based on facts, not feelings or opinions.” This quote from an article in HR Magazine articulates something HR leaders know better than most: Almost every company’s biggest expense is its employees.

Therefore, the most powerful measurement for the C-suite is the return (or lack thereof) on investment for those employees. There is a reason top tech companies excel with these numbers. Revenue per employee (RPE) is simple to calculate:

Total Revenue / Total Number of Employees

This metric determines how effectively HR is hiring and training their employees. As long as HR leaders ensure they compare their company’s RPE to similarly sized businesses from their industry, RPE can help senior leaders confidently make game-time decisions.

In summary, HR leaders can actively contribute to business decisions by presenting the C-suite with metrics that matter. In an interview for HR Magazine, compensation analyst Jennifer Triumph noted, “[HR leaders] need to present data that show our human capital strategy is effective and that we are acquiring, developing and deploying the proper talent.”

The data-driven desire of those in senior leadership isn’t going anywhere and HR needs to be aware of their business’s metrics in order to lead their workforce into a successful future.

Posted in Blog, Featured, HR Management, Leadership, Talent Management

Chad Raymond

by Chad Raymond


Author Bio: With over 19 years of experience in employee engagement, benefits administration and government compliance, Chad has unparalleled knowledge in the fields of leadership and human resources. Chad has worked in several different capacities with Paycom including leading our product development team and HCM initiatives as well as the former director of Paycom’s service department. Chad’s vision and execution helped empower executives and their teams to reach their full potential, ultimately leading to his role as Paycom’s vice president of HR.

Strategic HR

4 Ways Strategic HR Moves Your Company Forward

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4 Ways Strategic HR Moves Your Company Forward

Business leaders are realizing that skill shortages and disruptions in the workforce will change everything. The link between effective talent management and profitability becomes more evident every day. As a result, the C-suite is looking to HR to attract, build, engage and retain the talent their business needs to compete and grow. If you and your team haven’t yet adopted a talent-focused and service-delivery model, conditions are perfect for making this leap.

Why now?

The looming skills shortage and changing nature of the workforce has a lot to do with it. According to research by PricewaterhouseCoopers, 72 percent of CEOs list the availability of key skills as one of the biggest threats to their business.

To offset this potential negative impact, CEOs increasingly have become involved in decisions regarding talent. Many have explored options like outsourcing certain business functions or departments, and utilizing staffing agencies and independent contractors to fill the gaps. Business leaders have begun to revisit their talent strategies and embrace nontraditional employment structures in order to have the workforce they need to achieve organizational goals.

But as technology continues to revolutionize the way people communicate and work, talent strategies must evolve continuously as well. The rise of the “gig” economy and the growth of telecommuting will continue to challenge both CEOs’ and HR leaders’ ideas of what the workplace – and an employee’s career – looks like. Employers are taking a proactive stance.

According to Deloitte’s 2017 Global Human Capital Report, 87 percent of U.S. companies rated preparing for the future “very important.” However, only 11 percent of companies reported knowing how to build “the organization of the future.”

Moving forward

Because an organization’s workforce ultimately drives its performance, and business leaders acknowledge the link between talent and performance, Deloitte’s findings represent an exciting opportunity for HR leaders and their teams. To become the talent enhancement department and drive the business of the future, consider these four tips:

  1. Use all of your payroll and HR software. 

    Focusing on cultivating talent means shifting your time and resources away from other HR functions; but compliance, payroll, benefits and more still must be managed flawlessly. This is where your human capital management (HCM) technology can act as a real load-lifter – if you’re using it properly.

If you or your team is underutilizing your HCM tech, think about what’s holding you back. Are paper-based processes still alive because your new system isn’t user-friendly? Does your team find it easier to do things the old way? If so, ask your provider for training. Then, help keep your team’s collective eyes on the prize. Reiterate how turning the administrative work over to the tech will give them the time they need to focus on talent strategy.

  1. Use behavioral profiles to recruit top talent.

    Identifying top performers and create behavioral profiles of those individuals. Giving these profiles to recruiters and hiring managers can help them find similar candidates who have the skill set and personality to succeed in specific roles.

The use of behavioral profiles can also increase employee retention. A study by PI Worldwide reveals that establishing behavioral profiles for specific roles helps managers create succession plans and performance incentives that work.

  1. Work with front-line managers to build engagement.

    According to Gallup, managers can influence employee engagement by as much as 70 percent. But not every person in a managerial role has the ability to inspire and drive his or her employees. Luckily, there are several ways HR can help business leaders give managers the tools they – and their employees – need to succeed. 

  1. Tie your metrics to business outcomes.

    According to ERE Media, traditional HR metrics tend to focus more on departmental efficiency than business performance. Instead, find and report on new-hire productivity, the costs associated with losing key employees and filling their vacancies, and revenue per employee. These metrics paint the big-picture view leaders need to make informed workforce decisions.

Following these steps can help you become the high-impact HR organization your company needs, now and in the future.

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Posted in Blog, Featured, HR Management, Leadership, Talent Management

Chad Raymond

by Chad Raymond


Author Bio: With over 19 years of experience in employee engagement, benefits administration and government compliance, Chad has unparalleled knowledge in the fields of leadership and human resources. Chad has worked in several different capacities with Paycom including leading our product development team and HCM initiatives as well as the former director of Paycom’s service department. Chad’s vision and execution helped empower executives and their teams to reach their full potential, ultimately leading to his role as Paycom’s vice president of HR.

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