What’s a Key Driver of Performance?

If you’re serious about improving performance and driving growth, focus on how happy and engaged your people are. That may seem very mamby pamby, but there is growing evidence that it’s not such ‘soft stuff’.

Here are a couple of Gallup statistics to consider:

Actively disengaged employees erode an organization’s bottom line.  Within the U.S. workforce, Gallup estimates this cost to be more than $300 billion in lost productivity alone. (Source: Gallup website) 

Beyond the significant differences engaged workgroups show in productivity, profitability, safety incidents, and absenteeism versus disengaged workgroups Gallup’s research shows that engaged organizations have 3.9 times the earnings per share (EPS) growth rate compared to organizations with lower engagement in their same industry. (Source: Gallup website)

Now the question is what really drives engagement? Teresa Amabile, a Harvard Business School Professor and Steven Kramer researched that question. What they determined is this — of all the events that engage people at work, the single most important is simply making progress doing meaningful work. In a September 4th New York Times article, Anabile and Kramer note “As long as workers experience their labor as meaningful, progress is often followed by joy and excitement about work.” Interestingly this positive ‘inner work life’ (as the researchers call it) has a profound impact on creativity, productivity, commitment and collegiality.

The leader’s role, then, is to help people make progress — remove obstacles, provide support, recognize progress and provide feedback on what’s not working. Unfortunately, almost all managers don’t see making progress as a compelling motivator. When Amabile and Kramer asked 669 managers from around the world to rank five employee motivators,they ranked ‘supporting progress’ dead last. Ninety-five percent of these leaders failed to recognize that progress in meaningful work is a far more important motivator than raises and bonuses.

So, next time you are trying to create motivating environment, don’t automatically think about traditional rewards. Think about whether your people feel like they are moving up the mountain or if they feel like their pushing a boulder up the mountain only to have it roll back down on them.

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