Money can’t buy you love

By Colin White

Motivation should be the most important word in the HR lexicon. Understanding it is the key to top performance, the means by which we attract the very best people into our firms and the most effective tool we have for keeping them with us. To discover the application of this truism, we talked with partners and HR professionals in firms with both good and bad attrition figures to analyse the ways this is addressed in the modern commercial environment to create a place where people want to be.

Over the years, I have spoken with innumerable solicitors in many countries and the reasons for satisfaction and dissatisfaction never fundamentally change, regardless of nationality, gender or age. This level of predictability means that we can successfully take steps to retain those we value and to attract those whom we covet. But what are these steps?

The 2005 CIPD report states that the most commonly reported key reason for employee turnover is promotion outside the organisation (53 per cent) followed by a lack of career and development opportunities (42 per cent). Currently, we are witnessing the annual jousting competition between the largest law firms as they announce pay increases and improved benefits packages while casting a nervous glance over their shoulders in case the next firm trumps their offer. Effectively, this strategy recognises the fact that it is difficult to keep people in an environment where opportunity is limited; it is simply not possible for all assistants to gain partnership. Recognising this means that, ultimately, we are buying labour rather than loyalty. The key to achieving loyalty while recognising the inherent limitations of the business model must instead involve more intrinsic factors.

Intrinsic motivators are value based such as freedom to develop ideas, input into designing aspects of one’s own role and a general feeling of inclusion. This causes people to want to do the right thing because it impacts the quality of their working life. They feel that their contribution is important and they have control over both inputs and outputs, freedom to make decisions, scope to develop skills and abilities, interesting and challenging work, and opportunities for advancement. This influences behaviour in a way that is more meaningful to the individual so is likely to have a deep and long-term effect.

One theme recurred in all firms with the best performance on this subject: firms must provide more than just monetary benefits to keep and attract the best people. McKinsey research suggests that as long as an individual’s salary is fair, 85-90 per cent of people do not consider it to be a critical deciding factor in their choice of employers. This message is borne out by our findings.

An extrinsic culture on the other hand is one unrelated to emotional needs; things get done to or for people to motivate them. This includes rewards such as pay, praise and promotion. These rewards are incredibly important, having an immediate and powerful effect. The problem is however, that the effect does not often last for very long and these factors can easily be replicated or improved elsewhere.

It is an irrefutable fact that people are the most valuable resource a business can have because without them, there is no way to generate income. The most successful firms make sure that this statement is no longer viewed as an overused cliché and have a strategy for attracting and retaining the best. These firms succeed because they recognise that their business is only as good as its talent; loyalty is not assumed.

Colin White is managing director at Ortus Professional Search. He can be contacted at colin.white@ortussearch.com