What Comes After Perks? -The Power of Intrinsic Motivation
What motivates us now is not as clear as we thought it was a few years ago. Until recently, it was thought that extrinsic solutions like money and perks were enough to motivate employees. But now, companies are realizing these solutions don’t work anymore with the new generation of employees.
It’s no secret that retention is a recurring problem, but how are companies fixing this?
Bonuses are not Enough
In 2001, an MIT study on how incentives increase performance found that monetary incentives only work when a mechanical skill is used to complete a certain task.
When tasks require any form of cognitive skill, the outcome changes. In this case, a higher monetary reward has shown to lead to a decrease in performance. The main difference between these two types of skills is that a mechanical skill is used on automated or repetitive actions, whereas a cognitive skill is applied to a more analytical and strategic function.
“If you don’t pay people enough they won’t be motivated. Pay people enough to take the money issue of the table and then focus on how to motivate them.”
Alongside technological automation, the nature of work is also changing. Work tasks are requiring more cognitive skills and less mechanical skills. Therefore, business leaders need to find new and effective ways of motivating their people in order to retain their best talent.
Perks are not Enough
Google introduced a new era of perks with the novel design of their offices, free meals and free massages. Following Google’s example, other companies adopted perks as a way to attract and motivate their talent.
One of these companies is Etsy, the e-commerce for handmade and vintage goods. Their new $40 million Brooklyn office upgrade includes catered meals, crafting and yoga classes. Even if Etsy does a great job at aligning their perks with their unique culture, their investors are not seeing the impact on business productivity and want to intervene.
Perks can create a fun and healthy work environment as well as serve as an employer branding tool. However, they won’t necessarily work as a continuous incentive for better performance or as a driver for a high-performing culture.
Lindsay McGregor and Neel Doshi
Intrinsic Motivation — The Sleeping Giant of Productivity
Monetary incentives and fancy perks have reached a level of fatigue and are rapidly losing their impact. Today’s employee, especially Millennials, look for purpose and meaning in their work and are not afraid to change jobs when they feel unfulfilled.
We believe that empowered managers have a huge untapped potential to influence and support performance within their teams. A study done by OfficeVibe says managers are accountable for at least 70% of the variance in employee engagement. However, only 21% of employees feel they’re managed in a motivating way.
“Intrinsic motivation occurs when we act without any obvious external rewards. We simply enjoy an activity or see it as an opportunity to explore and learn.”
Beaconforce is responding to these workforce trends by steering the employee-manager relationship toward intrinsic motivation. If employees are intrinsically motivated they will go to work for the sheer enjoyment of doing what they’re good at in a supportive environment. Managers can help their teams get there if they identify their intrinsic motivations.
Beaconforce is a platform that focuses on creating more inspiring and enjoyable work environments. It reveals to managers the intrinsic motivation of their teams in real-time. Additionally, it then proposes actions that managers can take to help their teams reach their full potential and increase their satisfaction at work.
