Mr. Kelleher

Human Resources, Recruitment & Training

Hotel Employees are NOT Motivated by Money, but by Achievement

By Bob Kelleher , CEO, The Employee Engagement Group

Repeat after me: Money Does Not Motivate Employees (at least, not long term).

This is often a very controversial statement with employees. Quite simply, they want to believe that they are motivated by money, and definitely want others (e.g. their boss and employer) to believe that they are indeed motivated by money (for fear that salaries and / or bonuses will be reduced). Most employees, of course would never explicitly admit that money does not motivate them. On surveys, ratings for "I am adequately compensated" are consistently low across all industries and with all companies. No one wants to give their company a license to cut pay or to reduce raises.

Some people, in select industries such as commission-based sales, might be highly motivated by money. And in some tip dependent occupations (wait staff, door men, etc.), where the connection to behavior and reward is almost immediate, pay can also be a motivator. However, these are the exceptions and not the norm.

As Mary Kay Ash, founder of Mary Kay Cosmetics, is quoted as saying, “There are two things people want more than sex and money: recognition and praise.” Research supports her belief that pay raises and cash incentives are ultimately not what motivate employees and keep them feeling good.

• Surveys dating back to the early 1980s demonstrate people want more from work than money. An early study of thousands of workers and managers by the American Psychological Association found that while managers predicted the most important motivational aspect of work for people would be money, personal time and attention from the supervisor was cited by workers as most rewarding and motivational for them at work.
• According to the Business Research Lab (2007), “rewarding and recognizing positive results is an important factor in retaining employees.” Most people are not motivated by money alone. Employees want to feel appreciated, recognized and valued.
• Bob Nelson, author of “1001 Ways to Reward Employees,” recently conducted an Internet survey that gave people choices of 52 items they find most rewarding. The No. 1 factor they valued was "managerial support and involvement"--asking employees their opinions, involving them in decisions, giving them authority to do their jobs, supporting them when they make a mistake, and so forth. Also important were flexible working hours, learning and development opportunities, manager availability, and time.

We must recognize that money is a motivator, but not in the way we think. Why? Because employees view cash rewards as payment for their good work.

Achievement as a Motivator

As these findings indicate, employees, and sometimes employers, often confuse money as a motivational driver. But, in reality, the real motivating driver is achievement. Whether we’re pursuing high grades in school, attempting to make the varsity basketball team, or striving to win the school spelling bee, we’re all driven by achievement. In work, it is really no different. What is different however, is the vague definition of winning. Many organizations struggle with defining and articulating the goals of success, company and/or individually. Money should be the reinforcement of the measurement, not the measurement itself (after all, who doesn’t want to win). Money may be a logical way to recognize superior efforts and should be used to reinforce behavior. But it is the achievement of the measurement that is the true motivational driver.

Transparency in measurement is in and of itself an engagement factor. For behavior change, employees need to know how they are performing personally, how their business unit or department is performing, and how that relates to the performance of the company as a whole.

Enlightened hotel executives have long recognized this and go through great lengths to create “Line of Sight” between the overall performance of a hotel, and the individual employee. The closer you can connect one’s performance with the overall business metrics, the more likely you will encourage the pursuit of achievement. Think about it, people don’t join companies disengaged.

As a metaphorical exercise to introduce a workshop module on motivation, I will sometimes have members of work teams construct paper airplanes, and then participate in a contest to see which team's plan will fly the farthest or stay aloft longest. During the contests, you would be surprised to see these groups of often serious-minded employees excitedly cheering on their team's effort. (Screams and high-fives are not at all uncommon.) Afterwards, I ask, "Why were you behaving like that over a paper airplane contest, knowing that you weren't going to be paid any money or receive any prize if you won?" The answers I get – and the expressions on the group's faces – indicate that this amusing little team-building game has demonstrated a truth that many bottom-line-oriented executives rarely think about: People don't want to under-achieve. Achievement – not money or prizes – is its own motivating engagement driver.

There is a great example to reinforce how people are driven by achievement in Switch, the bestselling change management book by Dan and Chip Heath. The Heaths share a fascinating study about hotel housekeepers and how, as a group, they are amongst our most fit working Americans as measured by the number of calories they burn cleaning rooms daily. The study looked at two groups of hotel housekeepers, groups A and B. Each of the participants in Group A was weighed at the beginning of the study and told they were some of the most fit Americans based on the number of calories they burned each day cleaning hotel rooms. Group B was simply weighed at the beginning of the study and told nothing else.

After a few months, they weighed both groups a second time. Although there was no noticeable weight loss of Group B (why should there be), the housekeepers in Group A lost an average of 5 pounds. Switch uses this example to reinforce that change management can occur incrementally. However, I also think it is also a great example to highlight how people are driven to achieve. Housekeepers in Group A learned that they were surpassing a specific measurement (e.g. burning more calories than the average American employee), and thus became intrinsically motivated to continue to achieve results.”

Money as a De-motivator

But it should be noted that while money is not a primary driver of engagement, it can certainly disengage staff if they feel they're being rewarded unfairly compared to others in their group (internally to the company or externally), internal or external market. As a follow-up hypothetical to the paper airplane exercise noted above, I'll often ask that same group of employees two questions. "If I gave each of you $5,000 tomorrow, in two or three weeks, would you be working any harder?" Most, being honest with themselves, would have to say no. (Although at least one per session usually jokes, “Well, give us the money and we’ll let you know.”) Conversely, "If I cut your salary by $5,000 tomorrow, in two or three weeks, would you be less engaged?" In this case, it's easy for the employees to see why there would be erosion in engagement.

Generally speaking, a good model for a hotel would be to pay at or slightly above the midpoint in pay (and to offer the industry standard or slightly better in benefit programs), but to offer greater sharing in the hotel’s overall gains (whether that means larger bonuses and/or profit sharing). This builds on the mutual commitment between the company and the individual employee. It not only says "When we win, we win together…" it proves it. Additionally, hotels that cautiously manage their fixed payroll costs (i.e. base salaries) while allowing for greater upside in the variable component (bonuses and profit sharing), will better survive a “down” year.

Bob Kelleher is a noted speaker, thought leader, and author of the critically acclaimed LOUDER THAN WORDS: 10 Practical Employee Engagement Steps That Drive Results, which has climbed to the #3 Workplace book, #5 HR book, and #12 Management book on Amazon. A sought-after consultant, Mr. Kelleher travels the globe sharing his insights on employee engagement, leadership, and workforce trends. As CEO of The Employee Engagement Group, he also helps leadership teams better engage their employees and drive profitable growth. Mr. Kelleher can be contacted at 508-935-8070 or rkelleher@employeeengagement.com Extended Bio...

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