It’s not enough to know something; a person must engage to see results. And what drives anyone’s engagement will significantly impact whether they stay engaged for the long run.
According to Gallup (2021), only 35% of employees in the United States are engaged in their jobs. For business leaders, that means that, statistically, six out of 10 U.S. employees are not engaged. That hits the top and bottom line of any organization. For example, organizations for which employee engagement is higher experience significantly lower absenteeism, less turnover, fewer quality defects, higher customer loyalty, higher sales and higher profitability.
And here’s the good news: Gallup also found that 70% of the variance in engagement can be explained by the quality of a leader. Leadership style makes a significant difference for both the employee and the organization when employees stay engaged.
So, let’s dig into the science of staying engaged; in other words, staying motivated.
There are several types of motivation, but intrinsic motivation is the most persistent and originates from within the individual, as E.L. Deci and R.M. Ryan discuss in their 2000 article in Psychological Inquiry, “The ‘what’ and ‘why’ of goal pursuits: Human needs and the self-determination of behavior.” And here’s the good news: There’s kind of a formula to it. Deci and Ryan explain that, when a person’s psychological needs of competence, autonomy and relatedness (CAR) are met, they are more likely to stay intrinsically motivated.
And E.J. Boezeman and N. Ellemers, in their 2009 article “Intrinsic need satisfaction and the job attitudes of volunteers versus employees working in a charitable volunteer organization” in Journal Of Occupational & Organizational Psychology, point out that competence is one’s ability to complete tasks or achieve the mastery to do so; autonomy is having a choice in one’s actions and outcome, and relatedness is developing and maintaining secure and respectful relationships. To continue to engage in something, all three are necessary because, when one of the needs is unmet, the structure of intrinsic motivation becomes unstable.
For a business leader, here’s what the CAR formula may entail:
Competence: The business leader provides team members with opportunities to increase their skills and ability to engage meaningfully at work.
Autonomy: The business leader provides options for team members where they can influence what they do and own their future.
Relatedness: The business leader uses empathy in relating to the team, helping them understand their leader has their long-term best interests at heart.
As it related to empowering employees with choices around investments, the CAR formula can be translated this way:
Competence: Individuals may not understand all the ins and outs of investing, but when presented with resources, they can develop their competence to the degree they desire. Part of this competence includes determining goals, understanding the wealth strategies to meet them and creating a plan to execute.
Autonomy: An individual gets to create a plan that will allow him or her to take control of his or her future. If part of that plan includes working for a set amount of time to fulfill those aspirations, individuals more willingly engage in work because they have decided to do so.
Relatedness: Building a relationship with a trusted financial advisor is always a good practice, especially when that advisor has no other agenda than to help clients achieve the best future possible.
Most people go to work to pay for needs and wants. Goals-based planning is a proactive strategy to cover those costs. Whether that goal is education, a new home or retirement, when individuals work with a trusted advisor there is a dual benefit of helping them own their future and engage in their work in a meaningful way. And when business leaders provide opportunities for their team members to develop those types of key relationships, everyone wins.
Joshua Zahn launched his career in financial services in 2014 and joined Desert Financial Wealth Management in 2019. He helps clients obtain financial success while educating and empowering them to make good decisions.
Did You Know: According to Gallup (2021), only 35% of employees in the United States are engaged in their jobs. For business leaders, that means that, statistically, six out of 10 U.S. employees are not engaged.
