| TOTAL REWARD Motivational drivers to engage your workforce Hay Group, a management consultancy, has unveiled its new total reward model which is designed to help organisation’ s understand and match what different kinds of employees want from their employment deal. Hay's Engaged Performance Model TM The Engaged Performance Model is Hay Group's trademarked approach to total reward design. Hay Group defines engaged performance as: A result that is achieved by stimulating employees' enthusiasm for their work and directing it toward organisational success. This result can only be achieved when employers offer an implicit contract to their employees that elicits specific positive behaviours aligned with the organisation's goals. Its underlying theme is that people are central to business success. The business argument is that managers can elicit higher levels of discretionary effort from people (and thereby deliver superior performance) by creating an engaged (enthusiastic and committed) workforce. As Hay puts it: The pay off is clear when organisations create the conditions for engagement and tap their employees' ‘ discretionary effort’ : improved morale, higher productivity and, a dramatic boost in financial performance. But attracting talent at all levels and gaining engagement and commitment to organisation success depends on more than pay systems. Pay levels may be the easiest aspects of reward with which rival businesses can compete against you, but they often fail to deliver sustained competitive advantage. Outstanding organisations have to be more subtle, observes Hay. What is needed is a move to more holistic employment deals . The Engaged Performance Model embraces not only tangible rewards — everything from competitive base salary and performance pay, to share schemes and benefits tailored to individual needs — but also the more intrinsic aspects of reward — take, for example, freedom and autonomy, an acceptable work/life balance, and most crucially, an effective leadership and management style. Motivational drivers Hay's model includes six elements which employees need before they direct their motivation towards their work:
One of the six motivational drivers is tangible reward. The first step is to get this right, argues Hay, because people who do not feel their remuneration is fair will be demotivated. But giving people competitive pay is necessary but not sufficient. Perhaps it's best to think of pay and benefits as merely a ticket to the game, says Hay Group. If you meet threshold levels for both, you get to play. But your are not going to win unless you do a lot more. Employers must then turn their attention to meeting people's needs from other elements of engagement . The Hay Group concludes: Using the engaged performance model to understand how better to tap employees' ‘ discretionary effort’ , and get them as often as possible into real and sustained ‘ flow’ , requires paying attention to all six drivers. It means understanding the needs and priorities of different segments of the employee population and taking clear, visible action to meet those needs. Inspirational leadership is the ultimate perk Hay reckons that between 50% and 70% of an organisation's climate — how it feels to work in particular environment, the atmosphere of a workplace — can be traced to leadership. Simply put, the leadership style of bosses strongly affects the organisational climate. In other words, good management creates a good climate, while poor management creates a poor climate. Both affect performance. This holds true in all sectors, says Hay. At the heart of the Engaged Performance Model is the idea that the quality of corporate leadership is a critical factor engaging employees for business success. So, for Hay, inspirational leadership is the ultimate motivator. In its absence, delivering on the other five elements of the engaged performance model is unlikely fully to engage employees. Hay Group's Engaged Performance Model
Source: Hay Group. A final word Engaged performance is the way Hay looks at reward design. It is not just about pay systems — reward is more than just remuneration. Engaged performance is about understanding why working for a particular organisation is attractive to different kinds of individuals. It considers the financial, motivational and practical aspects of work. Engaged performance looks at the ‘ heart and mind’ reasons why people work and why they work for you. The business premise is that the best organisations have engaged, performing people that achieve business results. — Hay Group. Want to know more? Title: Engage Employees and Boost Performance, Hay Group. Availability: For further information, or to request a hard copy of the report contact Lynsey Hall in Hay Group’ s London office, tel: 020 7881 7147 or email lynsey_hall@haygroup.com. You can also download a copy of the 21-page report, free of charge, in PDF format . . . www.haygroup.co.uk/News/latest_news.asp Hay Group is one of the world's leading independent management consultancies, with 73 offices in 35 countries. Formerly known as Hay Management Consultants, it is the UK's largest consultancy specialising in people, performance and work . About 150 consultants make up our UK team, with offices located in London, Birmingham, Bristol, Glasgow, Manchester and the Thames Valley. To find out more jump to . . . Posted 11 June 2002
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