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.

Across five field experiments with employees of a large organization (N=68, 915), we examined whether standard behavioral science interventions (i.e., ‘nudges’) successfully reduced single occupancy vehicle commutes. In Study 1-2, we sent letters and emails that included standard nudges to increase carpooling. These interventions failed to meaningfully increase carpool sign-up or usage. In Studies 3-5, we examined the efficacy of two other well-established behaviorally-informed interventions: non-cash incentives and personalized travel plans. Again, we found no meaningful effects. Across studies the effect sizes were d=[-0.01, 0.05], with a meta-analytic effect size of d = 0.02, 95CI [-0.02, 0.06]. Equivalence testing reveals that the effect size of four of the studies is statistically equivalent to zero (p < 0.0001). Our paper presents the first set of highly powered behaviorally informed experiments on these outcomes and highlights the importance of publishing null results to build cumulative knowledge about how to encourage sustainable travel.

You have had a tough day at work. Your presentation did not go well; your boss harshly critiqued your performance; a colleague was promoted to a position you had hoped to fill; and, on top of it all, some of your coworkers planned to go out after work and you were not invited. Anyone would feel lousy at the end of this day. But what helps you learn from these experiences and get back to business tomorrow is resilience. Resilience, the ability to adapt and recover from personal and professional setbacks, is increasingly recognized as a key driver of job performance. For those who lack resilience, a bad day can seriously throw them off their game, lowering their sense of worth, attitude toward their job, and work performance. In our recent research, we looked at whether using a brief, online intervention could build resilience in employees. We found that distressed employees who used such an intervention a few times per week showed significantly greater increases in resilience than employees who did not.

Deadlines are one of the biggest sources of stress in the workplace. Yet, many are flexible: Your manager might ask you to submit a proposal for a long-term project by Friday, but not plan to look at it until Tuesday. Could asking for more time (when we need it) be a simple way to avoid feeling panicked and overwhelmed? While it’s common to believe that pushing back a deadline might reflect poorly on us and be seen as unprofessional, we know relatively little from research about the actual consequences of asking for more time. To better understand this, we conducted 10 experiments and a survey with nearly 10,000 employees and managers in the United States. We found that, across occupations, asking for more time to work on an assignment was, on average, perceived positively by managers—and it reduced employees’ stress levels and improved their performance. In one survey—of 191 employees—we found that 95% of those who asked their manager for a deadline extension received one.

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

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