Page 244 - leadership-experience-2008

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Motivation and Empowerment

Not so long ago, Kwik-Fit Financial Services was struggling. Morale at the
Lanarkshire, Scotland-based insurance intermediary was dismal. People
didn’t want to come to work, and most of those who showed up at the call
center found it hard to slog through the day. The company was having a
hard time recruiting workers to make up for a 52 percent staff turnover rate,
and top managers had doubts about the fi rm’s future profi tability.
Managing Director Martin Oliver and Human Resource Director Keren
Edwards embarked on a campaign to make Kwik-Fit “a fantastic place to
work.” The two leaders started by listening, and they learned that most em-
ployees felt like the company didn’t care about them. So, Edwards led a se-
ries of workshops that involved every employee in examining life at the call
center and how to make it better. In all, 32 workshops generated more than
six thousand ideas. The company then charged teams made up of managers

and rank-and-file volunteers with the task of implementing selected ideas.
As a result, Kwik-Fit employees now work in a completely renovated build-
ing and enjoy bonuses, performance-based pay, fl extime, fl exible benefi ts,
and onsite day care. In addition, they counter job stress by taking advantage
of the free corporate gym; a cheerful “chill-out room” complete with TV,
pool tables and computer games; yoga and tai chi classes; and a massage

service. And then there’s Rob Hunter, the company’s first “minister of fun,”
who organizes special theme days, social evenings, annual sales awards, and
the holiday party. “Staff needs to work hard and play hard to be motivated
and productive,” Hunter observes.
Kwik-Fit has gone from being perceived as a company that doesn’t care
about its workers to one where employees feel a sense of ownership, be-
longing, and engagement. By 2006, absenteeism had declined signifi cantly,
turnover was down 22 percent, and 80 percent of employees said they would
recommend Kwik-Fit as a great place to work. Moreover, 2005 profi ts rose
by 50 percent, thanks to improved customer service. As Oliver said, “You
cannot give good customer service if your employees don’t feel good about
coming to work.” 1
Martin Oliver and Keren Edwards improved motivation at Kwik-Fit by
creating an environment where people feel that they matter. Rewards such
as bonuses and performance-based pay, and amenities such as the corporate
gym and a massage service, contribute to employee satisfaction, but they are
only part of the story. Equally important to motivation at Kwik-Fit is that
employees feel that managers genuinely care about them and are willing to
listen to their needs and concerns.
Many other leaders have found that creating an environment where
people feel valued is a key to high motivation. This chapter explores
motivation in organizations and examines how leaders can bring out the
best in followers. We examine the difference between intrinsic and extrinsic
rewards and discuss how these rewards meet the needs of followers. Indi-
viduals have both lower and higher needs, and there are different methods
of motivation to meet those needs. The chapter presents several theories of
motivation, with particular attention to the differences between leadership
and conventional management methods for creating a motivated workforce.
The fi nal sections of the chapter explore empowerment and other recent
motivational tools that do not rely on traditional reward and puni shment
methods.

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