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“How do you inspire your employees to come to work brimming with energy and passion? The secret lies in understanding what truly drives human behavior.”

1. Employees' Energy Levels Depend on How They Are Incentivized

The way you motivate your employees directly impacts their energy, satisfaction, and performance. Workers typically fall into four categories: demoralized, frustrated, encouraged, and energized. Only 29% of employees in the U.S. fall into the "energized" group, meaning they genuinely love their jobs and feel highly satisfied. The rest often suffer from lack of recognition or unclear expectations.

Traditional work culture views people as "homo economicus," rational beings motivated purely by money. This outdated belief assumes employees will only work hard to avoid penalties or earn rewards. However, most people operate as "homo reciprocans," valuing positive treatment and reciprocity in work relationships. Employees respond better to recognition and fair treatment than to threats or financial incentives alone.

For example:

• Workers who feel appreciated by their managers are more likely to be engaged and productive.
• Companies that fail to acknowledge individual needs risk creating frustration among employees.
• Treating employees as human beings rather than "cogs in a machine" fosters trust and dedication.

Examples

• A demoralized employee often becomes disengaged due to a lack of feedback or clear direction.
• Encouraged workers achieve good results but could thrive if treated with respect and recognition.
• Energized employees represent the gold standard, fully motivated and excited about their roles.

2. People Thrive When Treated as Individuals

Employees appreciate being seen as unique individuals, not just numbers on a payroll. One often-overlooked way to achieve this is by encouraging creativity and customizing roles. Personalized job titles, as demonstrated by the Make-a-Wish Foundation, allowed employees to own their identity and cope better with emotionally challenging work.

Regular one-on-one meetings show employees that their thoughts and feelings matter. Yet, only 70% of workers report having regular dialogues with their managers, and an even smaller percentage feel truly understood. Managers who actively seek to understand and address employees' preferences help create deeper engagement.

Research also underscores the importance of job security. Fear of job loss leads to disengagement and lower performance. Companies that offer flexibility during economic downturns, such as Hewlett-Packard's decision in the 1970s to reduce hours instead of cutting jobs, gained employee loyalty and long-term success.

Examples

• Make-a-Wish employees chose titles like "Heralder of Happy News," boosting their morale.
• A manager who meets weekly with their team improves communication and motivation.
• Hewlett-Packard achieved resilience during a recession by prioritizing job security.

3. Long-Term Financial Goals Matter More Than Short-Term Cash

Throwing money at employees rarely solves productivity problems. Monetary rewards lose their allure over time due to "hedonic adaptation," where material satisfaction fades as people get used to what they have. Instead, helping employees achieve their personal financial goals fosters loyalty and satisfaction.

For example, programs that help workers save for retirement or invest in career development send a clear message: "We care about your future." Companies that promote financial planning for employees see fewer resignations than those that focus only on paying competitive salaries.

Additionally, work-life balance is vital. Overworked employees often burn out and lose focus, harming both their health and their productivity. Companies like SAS have implemented shorter workweeks to protect their employees' well-being.

Examples

• Employees who feel supported in saving for education or homeownership are more loyal.
• A Canadian study shows 16% of employees feel work-life imbalance, leading to burnout.
• SAS's 35-hour workweek ensures employees maintain a better personal-professional equilibrium.

4. Employees Are Drawn to "Cool" and Transparent Companies

Just as people want to be associated with "cool" individuals, they enjoy working for attractive, distinctive companies. Companies that embrace their uniqueness without mimicking competitors create a sense of identity that inspires pride.

Transparency also matters greatly to employees, especially younger generations. Trust often erodes when employees feel significant information is hidden from them. Businesses can counteract this by openly discussing decisions, long-term goals, or even publishing employee salaries and leadership weaknesses.

Examples

• Apple positions itself as a unique, desirable workplace despite Steve Jobs' demanding standards.
• Generation Y values transparency, but only 19% consider people trustworthy, according to Pew Research.
• Companies that disclose internal information foster trust among employees.

5. Meaningful Work Produces Productivity

Employees naturally work harder on tasks they find meaningful. Studies reveal that people quickly lose motivation when they view their work as pointless. In one experiment, participants asked to build and rebuild the same LEGO structure over and over worked significantly less than those assigned new assemblies each time.

Providing meaningful tasks helps employees see value in what they do, fueling motivation. However, managers must ensure tasks are genuinely beneficial to the organization and not mere ploys to keep employees busy. Employees can sense manipulation and may become disengaged when they feel their work serves no greater purpose.

Examples

• Workers who know their jobs impact company goals feel more fulfilled.
• Building repetitive LEGO structures demotivates participants, while varied ideas inspire engagement.
• Clear feedback on how tasks align with company success boosts commitment.

6. Recognition Reinforces Effort

When employees receive praise, their brains release dopamine, which triggers motivation and happiness. Similarly, teamwork builds a sense of belonging and shared accountability, motivating employees even further. Sadly, only one-quarter of employees say they feel appreciated at work.

Acknowledging achievements while pointing out room for improvement encourages continuous growth. Managers should also focus on creating opportunities for meaningful human connection, like fostering friendships in the workplace or promoting team collaboration.

Examples

• Positive feedback encourages problem-solving and creativity among workers.
• Flexible seating arrangements allow coworkers to team up with friends.
• Recognizing individual effort promotes team productivity overall.

7. Empower Employees to Lead

Employees often feel empowered when they have control over their work. Companies like Zappos operate on holacracy, where traditional hierarchies are replaced by distributed decision-making. In these setups, employees tend to engage more creatively and take ownership of their tasks.

Good managers act as mentors, helping employees develop leadership skills and make thoughtful decisions. Shifting responsibilities as employees grow ensures long-term success for both the individual and the organization.

Examples

• Zappos' holacracy fosters high engagement and dedication among its employees.
• Bosses who step back and guide rather than micromanage see better results.
• Employees trusted with leadership respond with better morale and productivity.

8. Growth Comes From Challenging Situations

Extreme challenges push employees to adapt, grow, and refine their skills. High-pressure situations, like tight deadlines or resource constraints, prepare the workforce to handle unforeseen difficulties. Submarine crews, for instance, develop psychological resilience from working in confined environments for extended periods.

Properly managed challenges can transform employees into more capable and confident problem solvers. However, organizations must ensure that pressure does not become overwhelming, as sustained stress can lead to exhaustion.

Examples

• Submarine crews cope with isolation and limited contact and emerge stronger.
• Ambitious projects under tight deadlines give employees a chance to excel.
• Encouraging resilience through challenges builds long-term capability.

9. Optimism About the Future Inspires Loyalty

Employees want to feel optimistic about their future at a company. When workers lack faith in their organization's direction, they become disengaged and start thinking about leaving. On the flip side, investment in personal development enhances commitment and inspires long-term loyalty.

Employers can share company goals transparently, emphasizing growth opportunities or innovative plans that show employees their work truly matters.

Examples

• Employees who feel optimistic are more likely to stay and contribute ideas.
• Regular updates on company strategy reassure workers about future opportunities.
• Training programs for employees show long-term value, fostering engagement.

Takeaways

1. Host regular one-on-one meetings to understand employees as individuals and discuss their goals.
2. Offer training programs or initiatives that cater to employees' professional growth and long-term success.
3. Create a culture of recognition by celebrating achievements and fostering meaningful teamwork across teams.