Musings from the CU Suite

Written by Anthony Demangone

We all want colleagues that are highly motivated. But how to achieve this? 

More money?  Money surely does motivate.  But a recent study (McKinsey.com) conducted by McKinsey & Company found that money was not the most effective motivator.  What was?

1. Praise and commendation from a person's immediate manager.
2. Attention from leaders.
3. Opportunities to lead projects or task forces. 

The results of the study are highlighted in this chart.

 Click to enlarge.

Well, that should get your attention. But why do so many incentive systems still rely on money?  This comes from an article highlighting the study:

One reason may be that many executives hesitate to challenge the traditional managerial wisdom: money is what really counts. While executives themselves may be equally influenced by other things, they still think that bonuses are the dominant incentive for most people. “Managers see motivation in terms of the size of the compensation,” explained an HR director from the financial-services industry.

Another reason is probably that nonfinancial ways to motivate people do, on the whole, require more time and commitment from senior managers. One HR director we interviewed spoke of their tendency to “hide” in their offices—primarily reflecting uncertainty about the current situation and outlook. This lack of interaction between managers and their people creates a highly damaging void that saps employee engagement.

So, the questions of the day.  Does your credit union's incentive program incorporate any or all of the three items listed above?  If not, what would it take to get the ball rolling in that direction?

Have a great week, guys. 

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While this may seem overtly self-serving, I'd like you to consider attending NAFCU's Regulatory Compliance School this March 10-15. In today's world, every credit union leader needs to understand compliance. And I know of no better place to get that "understanding." NAFCU designed the school. We manage it. We never outsource it.  It is hard. It is long. It is holistic. But you'll leave the school with regulatory and compliance issues de-mystified.  Shoot me an email if you have any questions, but I've spoken with a number of CEOs who said that the school turbo-charged their career. 

Learn more here.