In the previous article, recommended reading before it, had begun discussing the need to use incentives to motivate managers and employees to align their objectives inherent to the company ( www.cumpetere.blogspot. com / .) Commented that some companies are beginning to relate some of the bonuses to the achievement of social and environmental objectives, not just economic. We mentioned, however, that monetary incentives can become ineffective and even counterproductive. We started discussing the differences between employer and employee transactions in the commercial and social matters.
The vast majority of incentives are developed in the commercial sector where it is more difficult to align them with objectives of social and environmental responsibility. The business environment is conducive to promoting trade and financial sustainability. This alignment of objectives is very difficult, even with the recent proposals to limit the part of the incentives paid in cash and partly paid shares in the company, with restrictions on their sale in the short term, to avoid short-termism, the enemy of social responsibility. There are also proposals in the sense that some of the bonuses be returned to the company if its performance is lower than expected. These proposals have financial incentives for the financial system, health care incentives. This is almost impossible to implement in small and medium enterprises, which constitute about 99% of companies in Latin America.
We consider developing incentive schemes transactions involving the social field, not only in the commercial. Corporate volunteering is a good example of a transaction that can be in these two areas, where part of both elements, the objectives of the company and the employee's intrinsic motivation. Even though volunteering is done in the context of the company is not or should not be, of the work for which one receives monetary compensation. If it is, is not voluntary. Would be on a business if required to do so and was done in company time. But when it becomes the employee's time, even in activities that benefit the company, enters the social sphere. It is reasonable that there is some compensation, such as to give them a day off for several days volunteering and / or any recognition. An incentive in the social field. This is a clear example where the social mix and the commercial sector that can provide guidance for other cases.
One example of the difference between commercial and social environment is an example of Wikipedia and Encarta cited in Dan Pink's video on TED ( www.ted.com / talks / dan_pink_on_motivation.html ). Encarta was conceived as an electronic encyclopedia, produced by experts hired by Microsoft to write articles at a high cost. A strictly commercial transaction. The opposite pattern was to Wikipedia, produced by volunteers. Few gave him much chance of success to something that involved "work" unpaid. But the pride of contributing, being part of a society advance, led to unprecedented success. Encarta is no more, Wikipedia is growing at a rapid pace in many languages \u200b\u200band is one of the most visited websites in the world. A transaction in the social field.
Within the company can exploit these intrinsic motivations of employees. In many surveys managers responsible practices respond that we must be responsible because it is right. In a McKinsey survey (September 2008) on the role of business carried out from nearly 1,500 executives in 78 countries, two thirds of respondents said that today the company must find a balance between the benefits and the common good and of these, 55% said it should be done because "it is what it to do. " In contrast, a third said that the company should seek the maximum possible performance. It is quite possible that workers also think the company is required to find that balance. But why not move these convictions a day to day work? They are belief in the social sphere. But in most cases the implementation is proposed to make via salary, via rewards and punishments, and this does not seem to be producing the expected results.
What does this mean in practice?
Monetary incentives focus efforts on the money issue ("Surprise!) And restrict the vision for the short term. But responsible practices require initiative and creativity that are more fertile in the social relations in the field of employee-company relations. The Google example that treats its employees as part of the family, they do not measure the minute they are in office, has proved far more conducive to innovation and creativity (of course this comes with a comprehensive process selection and management of those resources).
Obviously I'm not suggesting replacing the salaries and monetary incentives for hugs and kisses, but if we want companies who care about society and the planet, besides making money, we should move the purely social commercial. The company must treat the employee as a friend, family member, or at least with respect and not merely as a production factor. Already said very eloquently by Pope John Paul II in his encyclical Centesimus Anus, "Profit is a regulator of business life, but not alone. Also to be considered human and moral factors, which in the long run, it is equally important for the life of the company. "
But responsibly, honestly. Many companies say they are not workers, who are part of the family business. But when things are not right, no doubt dismiss. They are part of the family when it suits them and they want to demand more of the employee.
Each company is different, every environment is different and the movement of a purely commercial relationship into a more social relationship between employer and employee should be done at different intensities, at different speeds, but the direction is clear: to implement practices makers can not rely only on orders from above and monetary incentives, should appeal to intrinsic motivation person to do good, but in a context where the company truly recognizes the employee as part of the family. "
In Latin American countries and especially in smaller companies where the balance of the relationship is more social level than the level of the market, should be less difficult to implement the relationships that motivate employees to responsible practices . In this sense the Latin culture is more conducive to the Anglo-Saxon.
Can we then use non-monetary incentives?
Another McKinsey survey (November 2009) on employee motivation beyond money, it was found that non-monetary incentives were more effective, but unfortunately least used, that monetary incentives. Three incentives are particularly effective. The recognition and congratulations by the immediate supervisor, the care you receive from the leaders in the company and opportunities to lead working groups or special projects. The survey reports them as more effective than cash bonuses, that increases in salary and options to buy shares. And do not cost much.
However, there is a strong bias in organizations on the impact of money, with a gross neglect of non-monetary incentives. However, in organizations where the possibilities of progress are limited, the economic situation is not comfortable or where for reasons of policy (bureaucracy) salary increases differ somewhat between mediocre and good, non-financial incentives have a greater impact. Of course there is much difference in the reaction of employees depending if subsistence wages or if they pay to cover basic needs with ease, between workers and employees monthly salary.
remember the importance that he was among officials at the Bank to a public congratulations for a well managed project, an invitation to a luncheon with the Board or the President on the visit of some authority, to the invitation attending a management retreat, and not to mention the invitation to attend a business trip with "bosses." Raises are less important given their narrow margin of maneuver. And other factors influencing promotions. What distinguished were the non-monetary incentives.
Another very popular non-monetary incentive is to participate in special activities or decisions. The pride with which some employees say "I was named head of the working group" or "team leader to prepare ... ..." It's not a promotion, is a recognition. Who is it costs the employee has to work harder for the same salary. And these tasks can be special related to responsible practices.
When they began to promote sustainability issues within an institution, the resistance was great. "Why complicate life?" "This has no impact on the operations of the institution?", Etc. To gain acceptance and overcoming resistance on these issues formed a group of young volunteers who give ideas on how to reduce the environmental impact of office activities and promote. The group was proud to work on these issues. This group showed a jazzy name and membership in the group became a source of pride. Quickly the group provided excellent ideas which gradually began to implement and was slowly gaining acceptance in middle management (a little older) and senior management eventually (even greater).
This is not to say that monetary incentives are not important, but non-monetary incentives may have the virtue of moving the relationship between the employee and the company towards the social field, provided they are supplemented by the reciprocal relationship. "I can step out when my child is sick, no charge for my vacation? Can the company help me with the problem ... ....?
most advanced companies are refocusing the issue of remuneration from "compensation" which means a quid pro quo, "you give me, and I give", to "recognition" to a reciprocal relationship beyond what is strictly monetary.
But do not be naive. This road is not easy, it's slow, but with non-monetary incentives appropriate and aligned can promote integration of employees responsible practices.
Without the right incentives can not reach the paradise of corporate responsibility.
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