Cost Neutral Incentives For Human Service Employees by David Keegan

The Research Question Is it feasible for youth accommodation services to attract, motivate and retain staff within a resource limited environment by the use of an employee rewards and incentives program?

Method 1.Questionaire - 25 questions (14 choice questions and 10 written responses) - qualitative and quantitative data 2.Informal Interviews - service managers and HR people - not specifically documented 3.Literature Review 1.Questionaire - 25 questions (14 choice questions and 10 written responses) - qualitative and quantitative data 2.Informal Interviews - service managers and HR people - not specifically documented 3.Literature Review

Literature There is a lot of literature on incentives and rewards in the for profit sector but very limited material is available on this topic for the non profit sector. The literature from the non profit sector mainly focussed on supervision and appraisal systems as well as physical environment issues and mission connect. There is a lot of literature on incentives and rewards in the for profit sector but very limited material is available on this topic for the non profit sector. The literature from the non profit sector mainly focussed on supervision and appraisal systems as well as physical environment issues and mission connect.

Literature “Research on what employee’s value for rewards and recognition indicated a monetary reward only ranked 12th in a list of items important to employees….. studies indicate that when employees receive a monetary bonus it is typically used to pay bills, expenses or purchase something that the employee needs, not some thing they truly enjoy. Consequently money becomes a very impersonal gift” (Recognition Rewards Enterprises Website 2005) “Research on what employee’s value for rewards and recognition indicated a monetary reward only ranked 12th in a list of items important to employees….. studies indicate that when employees receive a monetary bonus it is typically used to pay bills, expenses or purchase something that the employee needs, not some thing they truly enjoy. Consequently money becomes a very impersonal gift” (Recognition Rewards Enterprises Website 2005)

Literature Anne Preston has written a paper in which she highlights Maslow’s hierarchy of needs as a reason why financial remuneration is not the only driver. She also highlights the role of the mission and other altruistic factors in attracting and retaining staff in the non profit sector. Anne Preston has written a paper in which she highlights Maslow’s hierarchy of needs as a reason why financial remuneration is not the only driver. She also highlights the role of the mission and other altruistic factors in attracting and retaining staff in the non profit sector.

Literature Mercer Human Resource Consulting in their What’s Working TM survey (Hutchison, Sandy; Fralicx, Rod; Kelley, Sam; Gilbert, Patrick 2004) found that “Australian employees: who are not receiving adequate training and development will leave their organisation are committed and satisfied when their manager encourages two way communication will leave the organisation if they don’t trust their manager or are not treated fairly do not generally believe that good performance is rewarded who believe they have a long term future with their organisation are more committed” Mercer Human Resource Consulting in their What’s Working TM survey (Hutchison, Sandy; Fralicx, Rod; Kelley, Sam; Gilbert, Patrick 2004) found that “Australian employees: who are not receiving adequate training and development will leave their organisation are committed and satisfied when their manager encourages two way communication will leave the organisation if they don’t trust their manager or are not treated fairly do not generally believe that good performance is rewarded who believe they have a long term future with their organisation are more committed”

Results Key Findings Summary Participants identified 4 factors that significantly influence attraction and retention in the workplace: 1. The mission, values and purpose of the organisation 2. A supportive team environment including management support and leadership 3. The opportunity to learn and develop in the job 4. Clearly identifiable positive outcomes for the clients. Key Findings Summary Participants identified 4 factors that significantly influence attraction and retention in the workplace: 1. The mission, values and purpose of the organisation 2. A supportive team environment including management support and leadership 3. The opportunity to learn and develop in the job 4. Clearly identifiable positive outcomes for the clients.

Results 1. The mission, values and purpose of the organisation Participants stated that they were aware of the mission and values of their organisation and that these motivated them in their day to day work. This was particularly characteristic of the larger religious organisations. However approximately half of the participants stated that the mission and values of their organisation did not lead them to work for the organisation. 1. The mission, values and purpose of the organisation Participants stated that they were aware of the mission and values of their organisation and that these motivated them in their day to day work. This was particularly characteristic of the larger religious organisations. However approximately half of the participants stated that the mission and values of their organisation did not lead them to work for the organisation.

Results 2. A supportive team environment including management support and leadership Participants consistently listed a supportive team environment as a source of motivation particularly in difficult times Many participants included supportive management in their comments about team support. Teams were also referred to as like a family 2. A supportive team environment including management support and leadership Participants consistently listed a supportive team environment as a source of motivation particularly in difficult times Many participants included supportive management in their comments about team support. Teams were also referred to as like a family

Results 3. The opportunity to learn and develop in the job The opportunity to learn and develop through access to training and advancement were consistently listed as reasons for working for or remaining in an organisation Many workers felt like they were unable to pursue training and development goals in their organisation Workers wanted flexible conditions and study leave to allow for access to training 3. The opportunity to learn and develop in the job The opportunity to learn and develop through access to training and advancement were consistently listed as reasons for working for or remaining in an organisation Many workers felt like they were unable to pursue training and development goals in their organisation Workers wanted flexible conditions and study leave to allow for access to training

Results 4. Clearly identifiable positive outcomes for the clients. Clearly identifiable and celebrated achievements by young people were consistently listed as reasons for remaining at work and as motivating factors at work. This also correlated with the reasons why employees entered the youth work field. Some employees felt that they needed to remain so that they would not let the young people down. 4. Clearly identifiable positive outcomes for the clients. Clearly identifiable and celebrated achievements by young people were consistently listed as reasons for remaining at work and as motivating factors at work. This also correlated with the reasons why employees entered the youth work field. Some employees felt that they needed to remain so that they would not let the young people down.

Results Other factors. Participants also valued the opportunity to take initiative and to be involved in decision making processes at work Flexibility in workplace conditions to accommodate for life’s unforseen events was also identified as a significant attractor Most participants stated that they found admin work to be boring and/or mundane and many found it frustrating as it withdrew them from the young people. In an ideal workplace many participants would like to also see additional resources for the young people Other factors. Participants also valued the opportunity to take initiative and to be involved in decision making processes at work Flexibility in workplace conditions to accommodate for life’s unforseen events was also identified as a significant attractor Most participants stated that they found admin work to be boring and/or mundane and many found it frustrating as it withdrew them from the young people. In an ideal workplace many participants would like to also see additional resources for the young people

Strategies This research indicates that remuneration is not significant in retaining or developing staff. Participants did list salary packaging as an attractor yet did not seem to list this or remuneration as significant when identifying motivators and attractors. However this research is not conclusive on this matter and the literature states that organisations must base remuneration and conditions on industry standards. The following are some suggested low cost strategies arising from this research… This research indicates that remuneration is not significant in retaining or developing staff. Participants did list salary packaging as an attractor yet did not seem to list this or remuneration as significant when identifying motivators and attractors. However this research is not conclusive on this matter and the literature states that organisations must base remuneration and conditions on industry standards. The following are some suggested low cost strategies arising from this research…

Strategies Fostering a supportive and positive team environment Ensuring that staff have adequate support and leadership from management Actively celebrating behaviours that match the mission and values of an organisation Actively promoting and celebrating positive client outcomes on a regular basis Actively highlighting the mission and values of the organisation in recruitment processes and in media and other publications. Fostering a supportive and positive team environment Ensuring that staff have adequate support and leadership from management Actively celebrating behaviours that match the mission and values of an organisation Actively promoting and celebrating positive client outcomes on a regular basis Actively highlighting the mission and values of the organisation in recruitment processes and in media and other publications.

Strategies Fostering opportunities for training and development within and between organisations. This can also include opportunities to act up. For smaller organisations it can mean sharing opportunities across agencies. Ensure that attention is given to the cleanliness and presentation of the physical environment for employees as this will affect their sense of worth within the organisation. Make the effort to provide flexible arrangements for employees to accommodate family and other commitments within reasonable limits. Make salary packaging available to all staff if there is the means to do so (eg. If the organisation is a registered charity) Fostering opportunities for training and development within and between organisations. This can also include opportunities to act up. For smaller organisations it can mean sharing opportunities across agencies. Ensure that attention is given to the cleanliness and presentation of the physical environment for employees as this will affect their sense of worth within the organisation. Make the effort to provide flexible arrangements for employees to accommodate family and other commitments within reasonable limits. Make salary packaging available to all staff if there is the means to do so (eg. If the organisation is a registered charity)

Strategies Encourage and allow innovation in service provision Make an effort to give employees the opportunity to be included in organisational decisions that affect them. Other factors to consider that may cost the organisation financially are: Ensure a commitment to staff development and training by allocating a realistic training budget that will allow for some individually tailored training plans. Research what other local employers are offering financially and what conditions they are offering. Then ensure that your organisation is at least comparable in what it offers financially compared to others in your area. Encourage and allow innovation in service provision Make an effort to give employees the opportunity to be included in organisational decisions that affect them. Other factors to consider that may cost the organisation financially are: Ensure a commitment to staff development and training by allocating a realistic training budget that will allow for some individually tailored training plans. Research what other local employers are offering financially and what conditions they are offering. Then ensure that your organisation is at least comparable in what it offers financially compared to others in your area.

Strategies Consider ways to offer additional award gradings beyond the limits of the award based on performance appraisals and not based on years of service. This may be in the form of financial or non financial benefits. Preston (2005) states that “deferred benefits that increase with seniority encourage retention of employees, which cuts down on hiring and training costs, increases institutional human capital, and often results in higher institutional loyalty.”

What does this mean? The research demonstrates that there are non financial factors available to non profit service providers that can be manipulated to motivate, attract and retain staff. The challenge is for organisations to develop policy and management practices that target these motivators and consider them in their budgets. The research demonstrates that there are non financial factors available to non profit service providers that can be manipulated to motivate, attract and retain staff. The challenge is for organisations to develop policy and management practices that target these motivators and consider them in their budgets.

What does this mean? There is a need to test these results in a real organisation over a sustained period of time in order to measure improved motivation and staff outcomes. The research however provides evidence of non financial motivators in the non profit workforce that should be considered when developing a human resource strategy. There is a need to test these results in a real organisation over a sustained period of time in order to measure improved motivation and staff outcomes. The research however provides evidence of non financial motivators in the non profit workforce that should be considered when developing a human resource strategy.

Contact Details David Keegan Marist Youth Care St Vincent’s Adolescent Care Po Box 49 Westmead (02) David Keegan Marist Youth Care St Vincent’s Adolescent Care Po Box 49 Westmead (02)