Are bad attitudes, lack of commitment and low morale cutting into your bottom line? Are you frustrated with hiring star employees who eventually develop an "attitude" and poor performance? Recent studies have suggested that 70%of employees today are less motivated than they used to be, 80% could perform better if they wanted to, and 50% put forth only enough effort each day to keep their jobs.

Despite the scarcity of highly skilled workers, businesses today are on the verge of an extraordinary opportunity - a chance to realize the enormous unmet potential within current and prospective employees. However, a company will not achieve extraordinary success by running their business "normally."

As marketplace pressures squeeze profits and costs continue to rise, managers respond by freezing wages or giving minimal increases, cutting or eliminating training time and benefits, as well as hiring temporary or part-time employees. Normal employee response is loss of motivation, lower job satisfaction, wavering loyalty, and a loss of focus. Then the company experiences:

1. Lower quality of customer service
2. Increased turnover
3. Increased absenteeism and tardiness
4. Increased theft
5. Lower productivity
6. More accidents or incidents
7. Lower profits

A less obvious but even more significant threat to performance is the "demotivated" employee’s unwillingness to share their knowledge, learn new skills, and cooperate with other team members.

Demotivation can be devastating. Jeffrey Pfeiffer, in his book "The Human Equation," states that "the number one source of unique capabilities is a company’s people . . . (they) cannot be copied as easily as a company’s strategy or technology." If the employees are demotivated, the company’s edge is gone.

Companies that enjoy economic success are the ones who provide excellent customer service by encouraging their employees to contribute, recognizing them for their efforts and take an interest in the employee’s overall health. That success will only come from relationships based on commitment and loyalty.

One of the most significant threats to demotivation is turnover. Hiring and training costs average between 300-700 times the hourly wage. Each employee brings his or her unique motivational skills to the workplace. Those motivations must considered before placing a person in a job they are not motivated to perform. It is therefore critical for each employer to select and develop employees who have the potential to be profitable, motivated and highly skilled in their function. Companies who benchmark their employees develop their unique roadmap to success.

Another major cause of demotivation, according to Dr. Ray Miller, author of "Built to last" is that "with special exceptions, research indicates the return on investment (ROI) of human performance training is as much as ten times greater than the ROI on technical investment." The greatest part of Corporate America’s dollars are spent on technology upgrades to improve performance when it is documented that 80% of all performance issues are "people" related. Australia is now the world’s pacesetter in this new approach to performance - they are required to spend 4% of their budgets on training and employee development. They are now receiving dramatic improvement in performance and productivity.

How do you develop a culture of performance?

1. Provide employment security wereever possible. The vast majority of society longs for security and stability. Job stability always outranks pay on the "job satisfaction scale." Most people resist change because of its disruptive nature.
   
2. Hire selectively. Surround yourself with people who have the natural behavioral skills to perform their job functions. You cannot hire by guessing, gut reaction, or believing a resume - the cost is too high. Make sure you use some type of work environment study to profile the behavioral makeup needed to perform the task naturally. Then hire based on the individual’s natural style. The skills can be taught.
   
3. Reconsider the compensation structure. Companies should offer compensation based on corporate performance as well as individual performance. Employees must have a reference point, clear expectations, be given feedback and direction, and receive training and support to meet practical goals and satisfy personal needs.
   
4. Provide training beyond job skills. A recent Stanford University study showed that 88% of successful performance is a direct result of attitudes and an individual’s motivations. Only 12% of successful performance could be credited to skills or technical knowledge. Developing employee’s soft skills has a far greater likelihood of success and a higher return on investment. Motivated employees are more likely to take the initiative to learn and acquire new technical skills needed to grow and advance.
   
5. Learn to use the ideas, skills and efforts of all people. An environment which encourages the sharing of information and flexibility will find new ways to solve problems more quickly and effectively than the "company down the street".
   
6. Finally, promote your employees as your competitive edge. Believe as Douglas Ivester, CEO of Coca-Cola, one of the most successful companies in the world, does; "People are your most defining asset."

Chuck Coker

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