Staff motivation and the workplace cultural change

Simon Hill, CEO and founder of Wazoku – an idea management software firm that works with organisations to help them encourage innovation whilst creating a more democratic and entrepreneurial workforce – has emphasised that the current economic climate is still having a significant impact on the way organisations operate. The constant pressure on companies to reduce costs and expenditure has led to a fall in innovation and has also made it harder to motivate and engage employees on an on-going basis.

Hill also referred to a recent report by UK innovation agency NESTA (National Endowment for Science, Technology and the Arts), which stated that investment in new products and ideas has fallen since the recession of 2008. Earlier this year, another report by the CIPD (Chartered Institute of Personnel and Development) suggested that employers faced an enormous challenge to keep their staff motivated despite pay cuts and freezes.

Is there one single solution to this double issue? Traditionally, explained Hill, innovation has been the responsibility of a few people within management teams or marketing departments. However, we can create a more open culture through which companies can acquire better dividends, both in terms of creativity and innovation, but also in engaging and motivating their staff.

Lacking ideas

Remarkable and inspiring ideas are all around us. From technology to business and from sport to culture, ideas and innovation are at the very heart of almost everything we do. There are various examples of how a company can thrive, based on a simple yet ingenious idea, yet one wonders how many ground-breaking ideas within businesses all over the world lie unseen and dormant for one reason or another.

Innovation is important for any business for many reasons, such as: differentiating itself from the competition, developing new ways of working, applying different approaches to work, the introduction of new products, services and more. Any new business approach is widely recognised as having a significant impact on productivity and on the overall business performance and success. Hill says that, unfortunately, too many organisations are only paying lip service to innovation. Organisations often have nowhere or no method by which people can submit an idea. Employees are hardly ever seen as being capable of coming up with new ideas and therefore there is little incentive for them to do so. If there is no culture of innovation, an organisation will definitely struggle to get innovation programmes off the ground.

Staff lacking motivation

With the current economic situation, a big part of the workforce will be on the alert for any possible pay cuts and job losses. The CIPD’s research revealed that last year a large number of employees received a pay cut or pay freeze – more than in any year since 2008. And employees who have not experienced pay cuts, have probably had their bonuses put on hold and any pay rises have probably been modest.

In such circumstances, how can employers motivate and retain their workforce’s commitment? Hill points out that this question has been debated and discussed by various HR professionals, social scientists, employee engagement specialists and team leaders, etc., for decades and a common theme that echoes through these discussions is that recognition is key to employee motivation. Short-term incentives such as The Employee of the Month plaque or prize have only limited appeal and few staff would feel genuinely engaged and motivated by them.

Hill believes that if organisations involve their employees in the future direction of the organisation, reassure them that their opinions are trusted and valued, make them feel that they are all seen as equals and give them the opportunity to be involved in the company, it would be a different story altogether.

Two problems, one solution

Ultimately one should not underestimate the very real concerns about pay freezes and the threat of pay cuts, but true employee engagement can be a really powerful force in the workplace, emphasised Hill. The best ideas do not necessarily come from the most senior people or from those who promote their ideas the most. Consequently, providing a platform for people to submit their ideas can reap dividends, for staff engagement as well as for actual- ly generating new ideas.

A lot of good ideas are lost in quickly forgotten coffee break conversations or remain unnoticed in someone’s inbox. Having an established system that people can use to submit their ideas, secure in the knowledge that those ideas will be read and evaluated and that feedback will be provided, is a key component for any organisation that is serious about innovation. Staff need to know how and where they can share their ideas and know that those ideas will be listened to and acted upon by the right people in the organisation to take their idea further. Hill says that whenever an employee’s idea is submitted, evaluated and used, and recognition is given, the employee’s motivation will receive a huge boost.

Hill concludes by saying that all this helps to provide some of the innovation that is required, with people being recognised for their contributions, and organisations making profits from ideas that will lead to a more collaborative culture. This will result in organisations whose staff are involved and motivated.

Dulcie Brincat Peplow is a researcher at the Foundation for Human Resources Development