Dedicated to Igniting Brilliance in Your Organization
Issue: 3
Winter 2009
Hello, welcome back!
There has been a whirlwind of events since our Fall issue. Our first article in this issue discusses some key concepts in addressing employee motivation in the current economic climate. Next, we have our Spotlight article on Incentive Compensation Marketing that should provide some practical insights. In this issue we have a new feature called, "What About You?" - discover what other people think and feel about a particular subject - each upcoming newsletter will feature a different question. Lastly, in honor of Presidents Day, "Take the Quiz," will test your knowledge on U.S. Presidents.
We hope you enjoy the latest issue. Please read on.
Keeping Employee Motivation Up in a Down Economy
by Kurt Nelson
Today's economic downturn and uncertainty about the future has created a workplace environment that is not always conducive to great employee motivation.
Companies often have to go to drastic measures, such as employee layoffs or pay freezes in order to survive. It is reasonable to assume then that employees in companies that are experiencing layoffs, or reduced pay, or decreased bonus opportunities tend to have less motivation than those who are in companies that are not experiencing those factors. So what can we do to keep employee motivation up in a down economy?
The Four-Drive Model of Employee Motivation provides a different perspective on how we can stabilize employee motivation or even increase it. [For more information on the Four-Drive Model of Employee Motivation
click here].
The Four-Drive approach to employee motivation provides leaders with a different set of levers that they can use to keep employees engaged and committed. If the economic situation prohibits leaders from providing increases in pay or bonuses (i.e., the drive to Acquire) then those leaders need to focus in on increasing the drives focused on bonding, comprehension and defense.
What to do?
Four Drive Model of
Employee Motivation Acquire: the drive to "... acquire scarce goods that bolster our sense of well-being." Typically these are extrinsic rewards such as pay, bonuses, corner offices, etc.
Bond: the drive to create positive personal relationships with others at work that lead to a feeling of belonging and kinship
Comprehend: the drive to understand how we fit in, what things mean, how to solve and overcome challenges and to make meaningful contributions
Defend: the drive to defend is activated when a belief, a cohort, or an organization we associate positively with is threatened
So how do we use the other three levers to ensure that employees remain motivated in tough economic times? First, leaders need to realize that there are a number of typical responses that employees go through when a company has layoffs or reduces earning opportunities. Employee response to these types of situations often leads to feelings of guilt (e.g., why was I spared the layoff), anger (e.g., why am I being punished, I'm doing more than ever), fear (e.g., am I next? How much more will be taken away?), and confusion (e.g., I'm not sure what I'm supposed to do or feel).
These responses are real and have an impact on employee motivation. It is vital the leaders ensure that they are as clear and open as possible as to the situation, the reasons for the decisions that were made, and to define as much as possible on what future actions are going to be taken. This will help stem the negative responses. The way forward is to focus on expanding the three drives that we can impact.
Bond
"Humans have an innate drive to form social relationships and develop mutual caring commitments with other humans ..." (Lawrence & Nohria, 2002).
In hard economic times we tend to rely more, rather than less, on our friends and social connections. This is particularly true in companies where those relationships might be threatened due to layoffs. The trick for managers is being able to foster and nourish the relationships of those employees who remain. We recommend that companies focus more on creating events that foster real opportunities to bond. These events do not have to be large or elaborate team building events. They can include simple measures such as group lunches, happy hours, or open-forum or sharing team meetings. What is required is that they offer opportunities for individuals to get to know each other at a deeper level than typically offered in a work setting.
There is also a greater need for companies and managers to provide symbolic team elements. These include team recognition awards or ceremonies, on-going group rituals, or the creation of team logos. These actions not only give greater bonding opportunities to individuals but also provide a link to the organization as a whole (which also helps in enhancing the Defend drive).
We also recommend that managers try to form a more solid, personal relationship with their employees. It is understood that this type of relationship is not always possible, but even small gestures of understanding (e.g., finding out about employee families, interests, other hobbies) can have a significant positive influence. For managers who typically focus on achieving tasks rather than building relationships, this relationship process can be difficult. However, the need to bond is real for people and the results of having a well bonded team are significant.
Comprehend
"The natural thirst that is never quenched is the thirst for knowledge." (Dante)
We all have an innate drive to learn. When employees feel like they are learning and growing in their jobs, they will be more engaged and have increased motivation to perform. In tough times, we can leverage this by seeking employee input into strategic and operational decisions in response to the economic realities. Simply by asking employees for their input on how the company can respond and how they can help in their own job, can lead to an increase in engagement and motivation. We recommend that managers and leaders provide forums for employees to do this - either through meetings, company blogs, town-hall sessions or strategic planning sessions. There is a need to ensure that these forums stay focused on what can be done and remain positive, thus, it is important that these are moderated discussions and not left to the whims of the group.
Another key aspect of keeping employees engaged is ensuring that they feel like they are contributing to the organization by doing their job. They need to see how their work has a direct impact on the company. When organizations are going through difficult times and employees are asked to do more with less this is particularly true. In order to push this lever, managers need to think about how they can link employee's jobs to the organizational outcomes. Highlighting how a particular job is important to the company or customers can help maintain a feeling of contribution and importance.
Defend
"Humans tend to be especially sensitive to threats, even slights, to their bonded groups, and often react defensively." (Lawrence & Nohria, 2002).
The drive to defend is a reactive response to a perceived threat to anything that we hold dear. Organizationally speaking, this can be explained as the "tribal response." Such that when the tribe (i.e., organization) is threatened, the tribe members (i.e., employees) are highly motivated to defend it. This drive is one that can be easily leveraged in trying times. The economic downturn is a real threat and employees will rally behind the company to defend it with increased vigor and creative ideas.
The key, however, is to ensure that your employees feel that your organization is one that is worthy of defending. To this end, leaders need to focus in on clearly creating a bond between employees and the company. This can be done in a number of ways such as having company wide events, creating organizational rituals, fostering the development of interest groups inside the company, and providing clear communication around the positive benefits that the company is providing to your customers and the community.
The problem we see is that companies going through economic crisis often respond in ways that decrease the connection employees have with the company. Leaders need to ensure that they are not limiting conversation or ignoring employee's emotional response to the actions that a company has to make. The reasons behind employee layoffs and pay freezes need to be clearly explained Realistic expectations of the future need to be communicated and identified. Hope needs to be given to the employees that remain. Reasons for employees feeling connected to the company and what it does need to be strengthened. If these things are not done effectively companies run the risk of alienating their workforce in a time when they need to rally them. The task is two-fold: (1) leaders need to be very clear, open and deliberate in how they communicate and explain the negative actions that the company has had to make and (2) leaders need to reinforce and actively promote the positive impact that the company has on their customers, their community and for their employees.
The Upside
The economic downturn is difficult for all of us. However, if companies take a proactive approach to employee motivation, it can provide a long-term increase in employee engagement and loyalty. Companies that get this right will not only weather this economic storm but come out of it stronger and more apt to reap the economic upturn that will eventually happen.
Spotlight: I Don't Know What I Don't Know
The Reality Behind Motivating Sales People to Earn More
by Ash Fry, Ph.D.
It's Not That Simple
So, how would you like to earn more money in your current job? "Sounds pretty good, tell me more," I hear you say. The old adage, "sell more, make more" is straightforward advice for a straightforward sales job with a straightforward incentive compensation plan. If only life were really that simple.
It seems that the more complicated the product or service, the more complicated the sales person's incentive compensation plan. Looking at the pharmaceutical industry, sales professionals must know their products inside and out.
They must know the impact of the chemical composition of their company's prescription drugs, potential interactions, approved indications, restrictions, and contraindications just to name a few areas, not to mention the related formulary and regulatory issues. They have to be able to knowledgably discuss their products with physicians and other highly trained medical specialists - and speak about it in medical language. Not an easy task.
Add to this the complexities and nuances of Medicare, Medicaid, managed care, the plethora of generic drugs in the marketplace, state regulations, and an ever-growing list of competitors with "me-too" drugs, it is not surprising that the average pharmaceutical sales professional's incentive compensation (IC) plan is quite complex. While there might be a modicum of truth in the "sell more, make more" mindset in this set of circumstances, the reality is that there is a lot more to making money by "selling drugs" than just selling more.
But Wait, There's More
One field that the Lantern Group has been involved in for almost a decade is Incentive Compensation Marketing (ICM). We are not the math geeks that utilize obscure modeling algorithms to crunch the numbers and create the plans; but rather, we are the motivation specialists that take these complex concepts, break them down, and use creative and innovative means to clearly and simply communicate the material. We have taken our ICM expertise to literally thousands of sales people across a number of different industries: pharmaceutical, telecommunications, information technology, and financial. In fact, over the past 12 months, we communicated IC plans to one out of every three pharmaceutical sales professionals in the United States.
Okay, enough about us ... back to the topic of complex IC plans and not knowing what you don't know.
Due to the complexities of their IC plans, it is understandable that a significant proportion of pharmaceutical sales professionals do not have a good grasp on their plan or that they are not entirely sure how to leverage the plan elements to boost their income. This is a common theme that we hear often when out and about talking to sales people at focus groups, one-on-one interviews, national sales meetings, and at other sales-related forums.
Tell Me What I Don't Know - So I Can Make More Money
The concept is relatively simple: Educate sales people on the ins and outs of their IC plan to motivate them to sell more effectively, thus making more money for themselves and even more money for their employer.
While it is not quite rocket science, you are going to have to get your feet wet by jumping into the equation-infested waters of your IC plan "swamp" - no, it's not a real swamp, but by the way some people try to avoid it, you could be forgiven for mistaking it as such. This is where the skill comes in on our side of things - to effectively communicate enough information so the average sales professional can understand how to work his or her plan and earn those extra dollars - without drowning them in details. Basically this comes down to marketing your incentive plan to your people!
What color and how big should the life preserver be that we toss to our audience? When should we toss it in? How hard should we throw it? Are we going for accuracy or distance? All good questions that highlight the value that an experienced and knowledgeable ICM team can bring to the table.
So Where Now?
Enough with the questions already - I feel like I am on a TV game show called "20 Questions." Time to move on from the frivolity and onto some more practical ... what can ICM do for you? (it's okay as I asked this question.) Showing your sales people how to earn more money is just one facet of incentive compensation marketing. Other pertinent aspects are:
Taking an interest in your employees. Not to be blasé, but there is something called the Hawthorne Effect, where just showing an interest in your people results in an increase in productivity. While the stimulus may be nebulous, the results certainly are not.
Taking a REAL interest in your employees. The act of pausing for a moment to consider how to motivate employees can have other benefits such as refocusing the company on what is often referred to as the "most important asset" - their people. In today's troubled economic times, keeping good people in your organization has never been more vital.
Help employees focus on realistic and tangible goals. A common feature of most IC plans is a goal or set of standards for achievement. The psyche of most sales people lends itself to "the thrill of competition" and the desire to reach and exceed goals. By understanding their IC plan, sales professionals will have a clearer view of their goals or performance standards. This increases their motivation to perform.
Help employees achieve. The logic is not overly sophisticated: set IC plan goals; effectively communicate plan and goals to motivate employees; watch employees go about achieving goals; provide a pinch of leadership and a dash of management to keep employees focused on their goals; watch employees achieve goals; continue to encourage employees; watch employees exceed goals and earn more money; watch employees' sense of self worth increase as goals are exceeded; watch employees exceed goals even more and make even more money; watch company make lots of money.
Ah, Now I Understand
Incentive compensation marketing is so much more than just marketing fluff, pretty brochures, colorful images and sparkly PowerPoint presentations. To think of it in such a manner undervalues the true impact that it can have on an organization. Incentive compensation is one of the main drivers that companies have to impact performance - maximizing its impact is vital to an organizations success. We think of it as a multi-faceted approach to motivating employees and contributing to the corporate bottom line. So, mark these ones off on your "buzz word bingo" cards - while there might not be anything such as a "free lunch" anymore, we believe that "win-win" still exists.
"What About You?"
by Susan Stone
Welcome to, "What About You?" a new addition to the newsletter that deviates from the traditional article format. As motivation experts, we are curious about the inner workings and thoughts of the people we encounter and work with day to day. The idea for this section of the newsletter is that each issue will be dedicated to one question. This question will then be "taken to the streets" where we will solicit responses from a cross section of individuals.
Drum roll please...the inaugural question is...
"What motivates you to get up each morning?"
Have you ever asked yourself this question? If you have, some of your responses may have been: to go to work, to pay the bills, because the alarm went off, etc.
What if you took 5 minutes to reflect on this question? We asked six people from varying backgrounds and locations to do just that.
Some of their responses are focused on why they are motivated to get up and go to work while others are more general. Regardless of their focus, I think you will be surprised and inspired by their responses. You may even catch yourself identifying with the responses below, perhaps a nod of your head in agreement or a grin.
Enjoy a moment to read the inner motivations of our six amazing individuals.
Christopher Esposito, Account Executive, Sales
The possibility to succeed each and every day --- The desire to help people in both my professional and personal worlds --- The desire to be the best at what I do and most importantly the anticipation of many laughs.
Doug Schmitt, VP Music Education
I believe that Music is good for your Soul. Music also involves great passion! My business is simply making the connection between people and the products that musically distract them from their daily chores! Simple! Music! Be in it!
Brent Boston, Independent Contractor, Copywriting
On most days, the motivation to get up each morning is driven by need and daily tasks. For example, feeding the kids, bringing them to school on time, and work projects. On weekends and free days, the motivation to get out of bed is completely different. For instance at the farm, my motivation to get up is excitement, happiness and the opportunity to do whatever I wish. I can sit on the porch and drink coffee, ride my bike, play with the kids ... I'm motivated to get up, get going and have some fun.
Raymond Hebert, Vice District Governor, Lions International District 33S
I would say that it is because of purpose. I have a purpose for that day be it Lions work, tasks I have to finish, work around the house, or just to get to the gym so that I don't grow to be 300 pounds (LOL). Looking forward to the future is a motivator.
Frank Urso, Account Executive, Sales
Aside from the motivation of being a good provider for my family, the other main motivator is my desire to be successful. From my perspective, the definition of success would include successfully addressing my clients' business objectives and also successfully contributing to my company's growth (revenue and profitability). If I am able to achieve success, then the financial benefits are sure to follow.
Lieutenant Colonel Eric Burger, US Army, currently deployed to Afghanistan
As for what motivates me to get up in the a.m. - Weekdays (and all days deployed) - to do the best job possible for our country and our Soldiers. Weekends - to make the most of the time with my family. They aren't completely mutually exclusive, but that's it in a nutshell.
We would love to hear from you, "What motivates you to get up each morning?"
Email your response to: and we will email you what motivates the Lantern Group team to get up each morning.
A Note of Appreciation: Thank you to our six gracious volunteers for assisting us with this article.
Take A Quiz!
Congratulations to Jessica Diaz for winning the last Take A Quiz. Jessica received an iTunes Gift Card for being the first person to send in the correct answer. Jessica is a Finance Associate for Cummins Generator Technologies. She lives in Blaine with her husband and 4 year old daughter. She enjoys being with her family and friends and has a passion for photography. She enjoys capturing special moments with her daughter.
How well do you know the U.S. Presidents?
If it is February that means Presidents Day in the U.S. Test your knowledge and win a prize! The first person to e-mail the correct answers to
will be recognized in the next SPARK! newsletter and receive an iTunes Gift Card. Good Luck!
Choose from the list of Presidents below and match the correct President with the correct question.
1. Which president was drafted by the Green Bay Packers?
2. Which president founded a spa that is still operational today?
3. Who owned a haberdashery before becoming president?
4. Which president invented the swivel chair? 5. Who had a pet cow that was kept on the White House lawn?
a. Thomas Jefferson
b. William Taft c. Franklin Delano Roosevelt
d. Gerald Ford
e. Harry S. Truman
If you have any questions or just want to say Hi, we would love to hear from you.
As winter continues to send a mix of snow and cold know that spring is just around the corner! Remember that igniting brilliance in your organization is just one SPARK! away.
Kind regards,
Kurt NelsonAsh Fry, Ph.D.Susan Stone
President Principal OD Analyst OD Strategist
Companies often have to go to drastic measures, such as employee layoffs or pay freezes in order to survive. It is reasonable to assume then that employees in companies that are experiencing layoffs, or reduced pay, or decreased bonus opportunities tend to have less motivation than those who are in companies that are not experiencing those factors. So what can we do to keep employee motivation up in a down economy? 
We also recommend that managers try to form a more solid, personal relationship with their employees. It is understood that this type of relationship is not always possible, but even small gestures of understanding (e.g., finding out about employee families, interests, other hobbies) can have a significant positive influence. For managers who typically focus on achieving tasks rather than building relationships, this relationship process can be difficult. However, the need to bond is real for people and the results of having a well bonded team are significant.
The key, however, is to ensure that your employees feel that your organization is one that is worthy of defending. To this end, leaders need to focus in on clearly creating a bond between employees and the company. This can be done in a number of ways such as having company wide events, creating organizational rituals, fostering the development of interest groups inside the company, and providing clear communication around the positive benefits that the company is providing to your customers and the community.
It seems that the more complicated the product or service, the more complicated the sales person's incentive compensation plan. Looking at the pharmaceutical industry, sales professionals must know their products inside and out.
The concept is relatively simple: Educate sales people on the ins and outs of their IC plan to motivate them to sell more effectively, thus making more money for themselves and even more money for their employer.
Incentive compensation marketing is so much more than just marketing fluff, pretty brochures, colorful images and sparkly PowerPoint presentations. To think of it in such a manner undervalues the true impact that it can have on an organization. Incentive compensation is one of the main drivers that companies have to impact performance - maximizing its impact is vital to an organizations success. We think of it as a multi-faceted approach to motivating employees and contributing to the corporate bottom line. So, mark these ones off on your "buzz word bingo" cards - while there might not be anything such as a "free lunch" anymore, we believe that "win-win" still exists.
Have you ever asked yourself this question? If you have, some of your responses may have been: to go to work, to pay the bills, because the alarm went off, etc.
Congratulations to Jessica Diaz for winning the last Take A Quiz. Jessica received an iTunes Gift Card for being the first person to send in the correct answer. Jessica is a Finance Associate for Cummins Generator Technologies. She lives in Blaine with her husband and 4 year old daughter. She enjoys being with her family and friends and has a passion for photography. She enjoys capturing special moments with her daughter. 