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Introduction to Business 2e

Critical Thinking Case

Introduction to Business 2eCritical Thinking Case

Critical Thinking Case

Motivating Employees: A Changing Landscape

As mentioned earlier, U.S. businesses will face a changing workforce and modest growth in numbers with employees from several different generations as individuals choose to work past the traditional retirement age. And with advances in technology, business needs are expected to evolve. Societal shifts, in part due to the COVID-19 pandemic, have employees thinking beyond their salary to aspects such as work-life balance, flexible work arrangements, and more engaging/meaningful work experiences. “Our study reveals that recruiters and hiring managers are not only cognizant of the issue but are concerned about its current and future impact on organizational growth,” said Dr. Jesse Harriott, former vice president of research at monster.com (https://www.monster.com), one of the leading global online career and recruitment resources. “Businesses of all sizes and across all industries must develop and implement creative programs and strategies to attract and hire top candidates while retaining and motivating current employees. As the talent pool shrinks, it is imperative that immediate action is taken to ensure businesses are properly prepared and staffed for the future.”

In a sampling of 1,000 individuals, McKinsey & Company's survey showed that employees are motivated by clear, consistent expectations, with 72 percent of those surveyed indicating goal-setting as a key motivator. The survey further found that opportunities for development through training and non-financial rewards were also sources of motivation to drive performance.

While compensation is clearly a significant issue, not all companies can offer this advantage. Other strategies that motivate employee loyalty and commitment are necessary.

Some of these include:

  • encouraging work-life balance through creative benefit programs
  • clearly articulating expectations and holding both employees and management accountable
  • offering training and development opportunities for those interested in advancement
  • considering a promote-from-within program
  • employee/peer mentoring programs
  • regular assessment of employee satisfaction
  • regular and consistent performance feedback with rewards
  • creating an engaging workplace that is not only designed to retain employees, but also to attract new talent

Diana Pohly, who led The Pohly Company (a Boston-based custom publishing firm), keeps vigilant watch over the morale of the office, ensuring that employees are satisfied. “Business owners of growing companies must possess strong leadership and management skills in order to solidify the foundation of their business,” said Pohly. “Effective team leadership is imperative to sustain efficient team workflows and contribute to employee morale.” Improving employee morale with creative and effective management tactics ultimately boosts employee productivity, and that goes straight to the bottom line.

Critical Thinking Questions
  1. How are social and economic factors influencing companies’ approach to hiring, motivating, and retaining employees?
  2. What are some of the nonmonetary strategies companies must develop to attract and reward employees and keep them motivated?
  3. What “reward factors” would be important to you when working for a company? List at least five in order of importance, and list your reasons for each.

Sources: “Company Overview of Globoforce Group plc,” https://www.bloomberg.com, accessed January 24, 2018; “Diana Pohly,” The Pohly Company, https://www.pohlyco.com, accessed January 24, 2018; “Poll Says Top-Performing Workers Motivated By Money,” Nation’s Restaurant News, April 25, 2005, https://www.findarticles.com; “Team Motivation: Women Business Owners Increase Productivity Through Effective Leadership,” Business Wire, Oct 27, 2005, https://www.findarticles.com; Stephanie Ferguson Melhorn, Jenna Shrove, and Isabella Lucy, "Data Deep Dive: The Workforce of the Future," U.S. Chamber of Commerce, https://www.uschamber.com, October 4, 2023; Asmus Komm, Brooke Weddle, and Dana Maor, "What Employees Say Matters Most to Motivate Performance," McKinsey & Company, https://www.mckinsey.com, August 21, 2024.

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