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5 innovative ways to keep employees motivated

  1. Future of Work

5 innovative ways to keep employees motivated

Here are some research-backed tips to encourage workers.

A group of coworkers celebrating

What if instead of evaluating employees based on metrics like retention and hours worked, employers focused on things like fulfillment, stimulation, excitement, and motivation? 

Seem impossible? It isn’t.

The American Opportunity Index aims to do just that — and it’s improving business outcomes. The index is unique in that it measures employers based on how well they provide opportunity, purpose, and engagement for their employees. 

It assesses nearly 400 Fortune 500 companies across all sectors and highlights the practices that have led to higher levels of reported employee satisfaction, including nondegree hiring, upskilling programs, mentorship programs, and other growth opportunities. 

Employers that foster a culture of growth, motivation, and encouragement for their employees often see significantly higher rates of employee retention. This translates to more productivity, innovation, and millions estimated in additional profits.

“The American Opportunity Index was developed as a way to measure how well companies invest in their human capital, or their people — both to improve the outcomes of their people, but ultimately to also improve business outcomes,” said Marie Groark, managing director of the Schulz Family Foundation, which co-designed the AOI.

Groark broke down the key ways employers in any sector can implement the AOI’s findings in their workplace, ensuring that workers have ample opportunity for development and fulfillment. 

Besides increased productivity and profits, this approach could transform workplace culture. It could lead to companies where employers are more tapped into their workers as individuals and where workers can foster their unique talents and pursue their goals on a higher level. 

“Ultimately, what we would hope to see is that more American workers would have the opportunity to build their talents and work to their potential,” Groark said. “I think that’s what we all want as humans, to find opportunities to grow and to develop and to contribute and to thrive.”

1. Maintain inclusive hiring practices

Keeping employees motivated starts even before a person gets hired. One of the key facets the AOI uses to gauge companies is how broadly they consider job applicants. 

Groark defined this in two ways: 

  1. A company needs to assess applicants’ ability to contribute without extensive work experience. 
  2.  A company must be willing to hire applicants without a traditional four-year degree. 

In the first case, an applicant may have a degree but not a robust professional background in the sector yet. It is important to examine how their studies, lived experiences, and other aspects of their professional background indicate their aptitudes, talents, and overall potential for the role. 

In the second case, Groark said that it is not enough to simply drop the degree requirement from a job listing. 

“When you look at jobs where no degree is required, do these companies actually hire people without degrees?” she said. “There are a host of jobs where people with degrees continue to be prioritized, even if the degree is not necessary for them to complete the work. That isn’t good for the degree holder, nor is it good for the person that was kept out of that position.”

HR departments should ensure that job listings are inclusive and welcome individuals from all relevant backgrounds and experiences, that automated screening systems don’t accidentally filter out anyone lacking a college degree, and, finally, that human bias doesn’t lead employers to subconsciously prioritize those with traditional degrees, especially when it’s not necessary for the role itself. 

2. Ensure that employees are paid for how they truly perform

One obvious indicator of opportunity that the AOI measures is pay. However, Groark pointed out that this isn’t simply a matter of each employee taking home a pay stub with multiple zeros. 

Pay should be a continually gauged piece of an employee’s appraisal. The salary an employee agrees to when they’re hired is just a starting point: “What we look at is not just how much are you making right now, but how much growth has there been in that pay,” Groark said. 

Companies that continually reassess employees’ pay against the total value they create can ensure that workers feel recognized and properly compensated for their contribution. 

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3. Nurture talent through promotions, not external hiring

Employers should look at how they are developing leaders within their own ranks. Employees who are recognized for their performance through promotions are more likely to stay at a company long term

In return, the company will benefit from leaders who have spent more time within its walls, building strong relationships and developing a deep understanding of the organization’s mission, values, and institutional knowledge.

Groark described promotions as evaluated not just through frequency but through probability and quality. “Are you likely to get promoted?” she asked. “What’s the quality of that promotion? We measure pay and whether it’s a promotion where you actually did get more responsibility. Did you just get promoted once and that’s it, or are you able to continue to move up the ladder?” 

4. Create opportunities for growth and development

Groark emphasized how important it is to create “pathways or roadmaps” within the company in which employees can explore, identify, and pursue development and training to meet their interests and professional goals

Creating these opportunities — which may look like microcredentials, upskilling, or other supplemental, skill-focused learning opportunities — means that employees could “set a career path for themselves,” Groark said. 

“Giving employees agency by developing their internal navigation tools [allows] folks to understand what it takes to get to a job that they’re interested in. … When employees know that they’re valued by their employers, they’re seen as more than somebody doing a single job for right now. It really is a long-term investment that changes the dynamic between the employer and the employee.”

Some companies just don’t have enough openings to promote every worker who deserves it. In those cases, Groark said, it is still crucial to provide talent development opportunities so that workers can nurture their interests and be prepared for bigger roles in the future — even if they’re at other companies. 

“There are extraordinary companies out there that aren’t just thinking about promoting within their own company, but are invested enough in their employees that when they leave that company, those employees are likely to go to a better job,” Groark said. 

Though it may sound contradictory, sometimes the mark of a truly great employer is when their workers leave them to go on to bigger opportunities. 

5. Recognize the unique contributions different groups can make 

“It’s always important to [remember] that talent is everywhere, but opportunity is not,” said Groark. When certain groups — whether defined by gender, race, education, or professional background — lack equal opportunities to enter a company, that company risks missing out on a valuable, untapped talent pool

Even unintentionally, employers may prioritize hiring or promoting similar types of workers — overlooking that individuals with diverse professional, educational, or personal trajectories may not have received the same opportunities for growth in their roles. 

By not thinking more broadly about where talent exists and where opportunities may be lacking for people to raise their hands or try new roles across departments, employers may inadvertently limit themselves, missing out on new ideas and perspectives that could strengthen their team.

To avoid this, Groark recommended that company leaders first examine their own hiring data to see if there are disproportionate gaps in any group and whether those are company-wide gaps or in certain departments. If it’s the latter, leaders across the company should coordinate to ensure that opportunities for promotions and development are shared. 

It is important to do so not simply to fill a hiring quota but to intentionally and purposefully diversify the talents, experiences, and backgrounds that make up a workforce. Failing to do so will only “hold the company back,” Groark said. “It requires a regular audit to ensure that the entire company is operating according to its core values.” 

Groark also pointed out that these steps don’t need to be dramatic overhauls in a company’s organization. It can start with small, manageable changes from the management and leadership teams. It’s also important to remember that creating opportunities for workers in this way isn’t simply for charity or saving face. It can strengthen an organization’s bottom line. 

The AOI found that companies that scored in the top 100 overall — that is, those that took steps to ensure inclusive hiring practices, higher pay, more frequent promotions, more development opportunities, and greater parity — retained nearly 80% of their employees over three years, compared to lower-scoring companies, which only retained 50%. In doing so, they are saving anywhere from $101 million to $424 million annually. 

“If you start to do this and really invest in your employees, your employees want to stay and contribute to your company and grow with your company,” Groark said. “Which is ultimately a win for both the employee and for the company.”

Ultimately, though, the American Opportunity Index is about a lot more than metrics. It’s about creating a workforce where workers are recognized for their individual talents and performance and given opportunities to grow and pursue their full potential. When they do, it means a more productive and forward-thinking workforce that communities benefit from. 

“There’s a mutual benefit when employees see that companies are investing in them,” Groark said. “Then they want to equally invest in the company. When that happens, that shifts the entire company culture [to one] where everyone is working together in a way that advances both the individuals and the company as a whole. And when that happens, we all win.”

The Charles Koch Foundation, as part of the Stand Together community, elevates cutting-edge research like The American Opportunity Index and helps expand postsecondary educational options.

Learn more about Stand Together’s efforts to transform the future of work and explore ways you can partner with us. 

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