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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: Brad Richardson, Director of Business Intelligence, joined Paycom in 2005. 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.

How to Seriously Drive Employee Engagement

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If you won the lottery tomorrow, would you stop working? Chances are you’ve mulled it over before, even if you don’t buy a ticket often. When jackpot amounts grow to rival pro athletes’ salaries, the subject inevitably creeps into everyday conversation. At that point, it’s hard not to think and talk about what we would do as the recipient of a massive windfall.

So how do you think others responded? The answer may surprise you.

According to a study by Gallup, two-thirds of American workers would keep their nose to the grindstone, even after winning $10 million. A CareerBuilder survey reported that half of U.S. workers would continue working after winning the lottery, even “if they didn’t need a job financially.”

That’s right: If over half the working population’s biggest financial hurdles disappeared tomorrow, they would come to work the day after. But why?

What exactly is the employee experience, and how does it impact your bottom line? Find your answers in this podcast interview with Jacob Morgan.

In addition to the desire to maintain relationships with co-workers, 77% of respondents told CareerBuilder they would be bored without a job, and 76% said their work gives them a sense of purpose and accomplishment.

Why Purpose Is a Must

As those survey results show, in order to lead a fulfilling life, people need more than money. They need a reason to get out of bed in the morning. They need to know their actions matter in the grand scheme of things. They need to feel part of something bigger than themselves.

Work can help meet those needs, and when it does, employees feel purposeful, connected and intrinsically motivated: the winning trifecta of long-term engagement. Passion for helping achieve the company’s mission will sustain them when you’re unable to reward them extrinsically with cash or perks. Purpose will keep them going for the long haul.

Without purpose, employee engagement strategy becomes little more than a series of rewards that prod employees forward, but never inspire them to greatness. Not only is a piecemeal strategy ineffectual, it’s unsustainable. The pressure to constantly invent and implement ideas to motivate them quickly can exhaust resources and even the most zealous HR pro.

Your employee engagement strategy should include both extrinsic, short-term rewards and high-level purpose.

Building a Purpose-Driven Strategy

If you currently give employees annual or short-term goals and financial incentives, you’re on the right track toward building a purpose-driven strategy. If not, consider incorporating those aspects into your performance management plan. Then share your business’s ultimate purpose – its reason for being – with your people.

“A reason for being is a non-typical mission statement that has four criteria,” writes Jacob Morgan, futurist and author of The Employee Experience Advantage. “It rallies employees, is not centered on financial gain, is unattainable and talks about the impact the organization has on communities and the world.”

According to Morgan, major companies like Starbucks and Airbnb already have established their “reasons for being” and are seeing positive results. If you’re interested in doing the same, listen to this week’s episode of Paycom’s HR Break Room podcast. In it, Morgan will share steps companies take to define their reason for being, and tips on how you can, too. Click here to subscribe.

Once you’ve defined your business’s ultimate purpose, share it with employees. Doing so will make it easy for them to understand how their contributions count toward reaching the larger, common goal. That combined with other efforts – like pulse surveys, financial incentives, goal setting and professional development opportunities – will increase your odds of building a winning strategy and engaging employees for years to come.

 

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Posted in Blog, Employee Engagement, Employee Experience, Featured

Amy Double

by Amy Double


Author Bio: Amy, a tenured professional in sales and marketing with over 10 years of experience, is dedicated to creating content focused on helping organizations achieve their business goals. As an experienced writer, Amy is committed to researching and blogging about topics that affect businesses across multiple industries, including manufacturing, hospitality and more. Outside of work, Amy enjoys reading, entertaining and spending time with family.

DOL's Request for Information

Back to the Drawing Board: The DOL’s Overtime Overhaul Request for Information

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The U. S. Department of Labor is taking comments on how it should move forward with overtime overhaul

Since the newest regulations to the overtime law were found invalid, employers are subject to the previous version of Fair Labor Standards Act. However, the roller coaster has not ended.

On July 26, 2017, the DOL published a Request for Information in the Federal Register, indicating it intends to attempt an overtime overhaul. Comments to the Request may be submitted until September 25, 2017. The request asks the public for a response to 11 specific questions.

We can use the questions proposed to help uncover some of the possible changes the DOL is considering. Below are five of the more telling questions and what we can infer from them.

1. Should we just update the 2004 salary level based on inflation?

The Court suggested it would be permissible if the DOL adjusted the 2004 salary level for inflation during questioning at the preliminary injunction hearing. In fact, the Court stated, “[I]f [the salary level] had been just adjusted for inflation – the 2004 figure – we wouldn’t be here today … because [the salary level] would still be operating more the way it has … as more of a floor.” This question indicates the DOL may be referencing inflation because they believe it would be acceptable with the courts

2. Should the regulations contain multiple standard salary levels? If so, how should these levels be set: by size of employer, census region, census division, state, metropolitan statistical area or some other method?

The DOL attempts to make a more malleable test here, which, of course, would serve to be more sensitive to changing demographics. However, a change like this would clearly make compliance tough for employers.

3. Should the DOL set different standard salary levels for the executive, administrative and professional exemptions as it did prior to 2004 and, if so, should there be a lower salary for executive and administrative employees as was done from 1963 until the 2004 rulemaking?

Much like the question above about multiple salary levels, this question would likely provide a more effective test. However, would it come at the cost of convoluting the analysis for employers?

4. Would a test for exemption that relies solely on the duties performed by the employee without regard to the amount of salary paid by the employer be preferable to the current standard test?

This question suggests the DOL seems to be accepting the court’s analysis that duties are more important than salary.

5. The 2016 Final Rule, for the first time, permitted non-discretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of the standard salary level. Is this an appropriate limit or should the regulations feature a different percentage cap? Is the amount of the standard salary level relevant in determining whether and to what extent such bonus payments should be credited?

This question indicates the DOL may propose a version of regulations that still allows for bonuses to apply to the salary level.

Given the nature of the questions found in the Request for Information it’s clear the DOL has gone back to the drawing board and may propose something completely different from both the recent failed regulations as well as the 2004 revisions.

Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal problems.

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Posted in Blog, Compliance, Featured, FLSA, Overtime Expansion

Zachary Gregory

by Zachary Gregory


Author Bio: As a compliance attorney for Paycom, Zach Gregory monitors legal and regulatory changes at the state and federal levels, focusing on payroll and garnishment laws, to ensure the Paycom system is updated accordingly. He previously worked at a law firm as a tax attorney. He holds a bachelor’s degree from Oklahoma Christian University and a J.D. from Oklahoma City University. Outside of work, Gregory enjoys playing in the backyard with his two boys, and finding new restaurants with his wife and high school sweetheart, Kellyn.

FLSA Overtime Regulations

Court: DOL’s FLSA Overtime Regulations Invalid

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In case you missed it, on August 31, 2017, Judge Amos Mazzant of the Eastern District of Texas determined that the 2016 Final Rule issued by the U.S. Department of Labor, which increased the minimum salary threshold to $47,476, was not a valid action by the agency.

After finding that the case was ready for judicial decision and the parties at hand could be injured if the court did not intervene, Mazzant addressed all three of the plaintiff’s arguments.

First, the court addressed the state plaintiff’s argument that the Fair Labor Standards Act’s (FLSA) overtime requirements violate the Constitution by regulating the states and coercing them to adopt wage policy choices that adversely affect state budgets. The court held the Supreme Court precedent of Garcia v. Metropolitan Transit Authority established that Congress has the authority under the Commerce Clause to impose FLSA’s minimum wage and overtime requirements on state and local employees.

Next, the court declined to accept the plaintiff’s argument that based on the clear statement rule, the FLSA does not apply to the states. Under that rule, “if Congress intended to alter the ‘usual constitutional balance between the states and the federal government,’ it must make its intention to do so ‘unmistakably clear in the language of the statute.”

The court discarded this argument simply by pointing out the law is applicable to any “enterprise engaged in commerce or in the production of goods for commerce,” and this phrase, by statutory definition, includes the activity of any public agency. Therefore, the court held that the Congress was clear enough in its intention to impact the states.

 Failing the Test

Finally, and most importantly, the court agreed with the plaintiffs in finding that the Department of Labor acted outside of the scope of its delegated authority by implementing a salary-level test that effectively eliminated the duties test.

The court adhered to the test established in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., which requires courts to determine whether Congress has spoken directly to the precise question at issue. If Congress has, then the court and agency must follow the intent of Congress.

After interpreting the plain meanings of “executive, administrative and professional,” Mazzant found Congress intended the exemption to apply to employees who perform those duties, rather than those who simply are paid a certain amount. Furthermore, because the new regulations focused more on the salary level than Congress intended, they were found invalid, and the court held the agency acted outside of its delegated authority.

What’s Next?

The Department of Labor published a Request for Information in the July 26 Federal Register, which indicates the agency intends to continue its attempt at overhauling overtime.

Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal problems.

Tags: , , , ,
Posted in Blog, Compliance, Employment Law, Featured, FLSA, Overtime Expansion

Zachary Gregory

by Zachary Gregory


Author Bio: As a compliance attorney for Paycom, Zach Gregory monitors legal and regulatory changes at the state and federal levels, focusing on payroll and garnishment laws, to ensure the Paycom system is updated accordingly. He previously worked at a law firm as a tax attorney. He holds a bachelor’s degree from Oklahoma Christian University and a J.D. from Oklahoma City University. Outside of work, Gregory enjoys playing in the backyard with his two boys, and finding new restaurants with his wife and high school sweetheart, Kellyn.

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