People Experience Archives - NextGen Leadership AG

«New Work», also known as «Work 4.0» or «Future of Work» is a fundamental aspect of next generation leadership. But it poses major challenges for both employees and leaders. Autonomy can be just as difficult as letting go of control.

«New Work» is not new

The Austro-American social philosopher Frithjof Bergmann was already exploring what he called «New Work» in the 1970s. As founder of the New Work movement, he developed a counter-model to capitalism, so to speak. His basic idea – that work should be something that strengthens rather than weakens people – is more relevant than ever as we increasingly seek purpose in our highly technological world. Work should make people happy.

Finding out what people truly want

Bergmann was concerned with fighting what he calls «poverty of desire» among people. He wanted to help them discover what they really, really want. Today we are always hearing that employees seek purpose of existence in their work. With inspirational author and speaker Simon Sinek well known in business circles, numerous organizations have come to believe that ready answers on their raison d’être will boost their employees’ productivity in the long term. If only it were that simple…

Flexibility, autonomy and above all transparency

It is now generally accepted that organizations can significantly increase the productivity of their employees by consistently promoting flexibility, autonomy and transparency. In many cases, this requires a shift in the understanding of leadership towards creation of trust, which in turn is an essential component of New Work.

What «New Work» isn’t

Even today there are still a surprising number of organizations that on the surface engage in the debate on «New Work» but behind the scenes are focusing on whether to allow their employees a home office day once or twice a month. These wannabe «New Work» pioneers view this as a sign of trust. It isn’t enough and it isn’t «New Work». The more hierarchical and status-oriented the company’s leadership style, the more difficult it becomes to make the move towards more trust. Only with 100% backing at top management level is it possible to break through conventional structures. Many business leaders have failed to recognize the necessity of this transformation in the working world – or lack the courage to see it through.

Transforming to self-organization

On the other hand, many organizations have already shown themselves to be very progressive. They empower employees to determine their own office hours, replace employee appraisal interviews with team appraisal interviews and talk openly about their salary policy. These companies are considering getting rid of emails and PowerPoint and are introducing new communication platforms that facilitate collaboration within their organization. Some of them are already completely holacratic and work in a system in which there are no bosses, only roles.

«New Work» also requires employees to leave their comfort zone

For all its advantages, «New Work» can still be a challenge for some employees, especially those who have been in the workforce for a while. They can struggle when suddenly asked by their organization to think for themselves about what they can contribute to the corporate strategy. Asked to define for themselves how exactly they want to develop, many realize that they must also move beyond their comfort zone. Not everyone has an appetite for this.

A must for next generation leaders

For next generation leaders who are radically questioning conventional working models, the implementation of «New Work» models is elementary when it comes to winning over the best employees for the future and safeguarding the company’s long-term success. Some have already been actively involved in shaping the change towards new forms of work in their organization, many are still in the process of doing so and many are realizing that there is much work still to be done in implementing «New Work». Nevertheless, in a world in which anyone can find out about anything at any time autonomy is set to become even more important.

There is no way around the «New Work» path for organizations on their journey into the digital age.

One of my favorite questions during recruiting interviews has always been about what potential employees expect from a good leader. It’s not unusual to get the response “someone who can motivate me every day”. While this isn’t necessarily the best starting point for a successful working relationship, I have found myself increasingly interested in different forms of motivation and exploring how they contribute to top performance.

Benefits for all

Motivated employees are known to significantly boost profitability and significantly lower employee turnover. Motivated workers are more committed than average to their company, even when no one is looking. They’ll wear that branded company sweater on the weekends because they identify so strongly with their employer. And they’re ready to go the extra mile – even if that mile is uphill.

Motivation contributes significantly to the company’s success and the positive perception of the brand. But where does it come from, and how can you make more of it? Rewards and incentives are already a standard part of many benefits packages. With the next generation of employees looking for personal purpose in their professional lives, companies cannot afford to ignore the “intrinsic motivation” of their employees.

Intrinsic versus extrinsic motivation

Before we examine the question of how a company can strengthen its people’s intrinsic motivation, let’s make a short and very simplified excursus on the definition of intrinsic and extrinsic motivation: If I am motivated, it basically means that I want to do something. Intrinsic motivation means that I take that action because the activity is interesting or pleasant to me by nature. If I am extrinsically motivated, on the other hand, I perform an action because it leads to an external result. In the workplace, intrinsic motivation is about autonomy, competence and purpose, whereas extrinsic motivation is primarily about status, bonus, power, profit sharing and career.

Top performers need both

Even though extrinsic motivational factors may appear somewhat “negative” at first, it is important to understand that extrinsic motivational factors are also decisive for top performance. Even those with strong intrinsic motivation will be influenced by certain extrinsic incentives that contribute to an outstanding overall result. With regard to the world of work, it is said that there must be a fair wage base to enable intrinsic motivation. However, we also find that extrinsic incentives such as status, titles, winning a project or beating the competition can help to strengthen intrinsic motivation in the long run and motivate employees to try even harder to be the best.

How can companies promote employees’ intrinsic motivation?

The measures available to encourage intrinsic motivation among employees are as diverse as the companies themselves. What these measures have in common, however, is that they deal with issues such as “creating freedom” (autonomy), “strengthening the personal development of employees” (competence) and “identifying with the employer” (purpose). These intrinsic factors can be further strengthened and complemented by extrinsic incentives, especially in the area of competence. Ultimately, all elements that contribute to employees’ career success can also benefit intrinsic motivation.

Build on the good

Many companies will be pleased to discover that, done right, traditional and existing measures such as regular staff appraisals, individual further training, personal coaching, leadership development programs, demanding special tasks, job rotations, assignments abroad, expert platforms and so on automatically boost intrinsic motivation.

Many forward-thinking companies have also explored measures to promote autonomy, including the introduction of part-time models, flexible working hours, childcare, annualized working hours or an on-site gym. When it comes to strengthening identification with the employer, sporting events such as informal tournaments or joint participation in running events are highly effective. Other measures include communication platforms like monthly drinks, lunch roulette or regular CEO live events as well as participation in cross-company networks.

Ditch demotivating factors

Ideally, employees will perceive motivational measures as appreciative and supportive. Measures that address the innate need for competence, autonomy and social inclusion maintain intrinsic motivation, strengthen it and enable people – and their companies – to fully exploit their potential.

Given that motivation is a matter of strategic importance, it’s not enough to simply implement as many measures as possible to strengthen employee motivation. It’s also vital to eliminate as far as possible the factors harmful to intrinsic motivation. Key culprits are restricting autonomy, micromanaging processes or cultivating a climate of mistrust where a fear of making mistakes stands in the way of taking responsibility. Besides promoting intrinsic motivation, employers need to ensure that their culture does not interfere with it.

The right mix

For many employers, it remains a challenge to win over intrinsically motivated employees and then retain them. The right combination of motivational measures will depend on various factors such as the size of the company, the industry, the content and characteristics of the work. To get the focus right, employers need to ensure they have a fundamental understanding of the mechanisms of motivation. They can then put together a catalog of measures to support the desired outcomes. An excellent starting point for all business leaders is to hone communication skills and truly engage with employees. After all, a motivating mindset always starts at the top.

Work should make you happy