Winning the War for Talent: Modern Motivational Methods for Attracting and Retaining Employees

Anais  Thibault-Landry; Allan  Schweyer; Ashley V. Whillans

Article | Compensation & Benefits Review | September 2017

Winning the War for Talent: Modern Motivational Methods for Attracting and Retaining Employees

by Anais Thibault-Landry, Allan Schweyer and Ashley V. Whillans

Abstract

Given the struggle that many organizations face hiring and retaining talent in today's tight labor market, it is critical to understand how to effectively reward employees. To address this question, we review relevant evidence that explains the importance of workplace rewards and recognition. Based on a review and synthesis of the current literature, we make the case that organizations should move beyond salary and traditional cash rewards to place greater emphasis on non-pecuniary, tangible and intangible rewards and recognition initiatives. We further highlight the importance of aligning rewards with universal psychological needs. Finally, we discuss the need to conduct more research to understand when and for whom cash and non-cash rewards increase intrinsic motivation, organizational commitment, and optimal functioning in order to improve the design and implementation of existing reward programs.

Keywords: rewards; total reward strategies; incentives; recognition; motivation; psychological needs; Employees; Retention; Motivation and Incentives; Working Conditions;

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Citation:

Thibault-Landry, Anais, Allan Schweyer, and Ashley V. Whillans. "Winning the War for Talent: Modern Motivational Methods for Attracting and Retaining Employees." Compensation & Benefits Review 49, no. 4 (September 2017): 230–246.

Conventional wisdom says you should ask your colleagues for feedback. However, research suggests that feedback often has no (or even a negative) impact on our performance. This is because the feedback we receive is often too vague—it fails to highlight what we can improve on or how to improve. New research suggests a better approach. Across four experiments—including a field experiment conducted in an executive education classroom—researchers found that people received more effective input when they asked for advice rather than feedback.

When making major life decisions—such as choosing what to do after graduation—is it better to prioritize time or money? In a pre-registered longitudinal study of 1,232 graduating university students, respondents who valued time over money chose more intrinsically rewarding activities and were happier one year after graduation. These results remained significant controlling for baseline happiness, potential confounds such as materialism and socioeconomic status, and when using alternative model specifications. These findings extend prior research by showing that the tendency to value time over money is not only predictive of daily consumer choices but also of major life decisions. Additionally, this research clarifies the direction of the observed associations between valuing time and money and happiness, showing that valuing time over money uniquely contributes to well-being, in part by encouraging intrinsic motivation. Together, this work sheds new light on whether, when, and how valuing time shapes happiness.

When looking to improve workplace performance, people often seek third-party input by asking for feedback. However, we propose that asking for feedback might not be the most effective way of soliciting critical and actionable input. We offer a simple yet powerful alternative: ask for advice instead. Across four experiments (N=1,438), including a field experiment, we show that people offer more critical and actionable input when they are asked to provide advice (versus feedback)—even when they are asked to provide comments on identical output. When asked to provide feedback (versus advice), givers focus too much on evaluating the recipient, which undermines their ability to generate constructive (i.e. critical and actionable) input. Our findings suggest that framing feedback provision as advice provision may be a promising way of soliciting constructive third-party input.

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Winning the War for Talent: Modern Motivational Methods for Attracting and Retaining Employees

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