Posts Tagged ‘Motivation’

Profit Sharing in Government: Motivate Your Employees By Giving Them a Stake in Your Success. Just Don’t Try to Do it With Money

Tuesday, May 12th, 2009

helping-handsLast month I wrote an apparently controversial column called “Greed is Good.” (Thanks for all the “fan mail.”) In it, I tried to make the point that government does exist to make a profit; it’s just not measured in dollars. Profit is the outcome or result measure for the private sector. To say in government that we are not here to achieve a profit is akin to saying we are not here to achieve results. Try opening with that one at your next appropriations hearing.

For government, profit is measured in far more important things like quality of life, a clean environment, healthy kids and a vibrant economy. The point of my previous column was that we should be as focused on delivering these results to taxpayers as the private sector is on delivering profits to investors. Once we recognize we are here to achieve a “profit,” we’ll be better able to communicate our value to investors, develop innovative alternatives to achieve more profit — and finally, share our profits with employees.

How could we make profit-sharing work in government?

Let me start with how not to do it. The typical way we have interpreted profit-sharing in government is to give monetary rewards to employees. Borrowing ideas from the private sector, we have tried numerous ways to incentivize employees with money — a merit increase, a pay-for-performance-scheme, a “keep part of the savings” incentive, rewards for offering ideas. These programs have had limited success for a couple of key reasons. First, they are expensive and rarely survive a budget crisis. Second, they are built on some pretty strong assumptions: Namely, that you can motivate people, and that you can motivate them with money. (more…)