IF you run a small business and will be handing out chocolate rather than cheques this Christmas, you need not worry. Money is not the key to motivating staff.

Brian Brown, author of Motivating Your Staff For Better Performance, said that small businesses should never make the mistake of thinking that people can only be motivated by money.

“This is like comparing good garden compost with chemical ferti-liser – one will nourish and sustain growth, while the other will poison from the top down.”

So how do you motivate staff beyond short-term, monetary incentives? Brown believes a large part comes down to being an inspirational leader.

It is vital for a small business to have a strong ethos that staff and clients can buy into. This requires the person leading the company to create a vision for it.

Suzy Glaskie, founder and managing director of the marketing communications firm Peppermint PR in Cheshire, has installed a company points scheme as a way of motivating staff. When employees have gained three “Pepp points” they can choose between a manicure, a bottle of wine or a free Costa coffee every day for a week.

Glaskie has tried to remain vague about her criteria for handing out points – hard work and being a considerate colleague are rewarded. As the points are written up on a board in the middle of the office, the system is more about public recognition than simply enjoying the prizes.

“It introduces a sense of friendly competition along with motivating people to go that extra mile, for themselves and for the team,” she said.

When holding a review, or discussing a problem, Glaskie takes individual staff members to a local café. “It’s less confronta-tional than calling a meeting in the office. People are at ease and tend to open up more easily. We end up having a far better meeting than we would in a more formal environment.”

She believes that the key to instilling a company ethos is to spend time with her staff. Part of that is always knowing what is going on in their lives, on a professional and personal level.

“It’s crucial to get to know people’s hopes, ambitions and insecurities so you can help them to progress in the way that’s best for them. People don’t just imbibe your passions unless they get to know you and vice versa.”

Nick Gray, managing director of the creative retail marketing agency Live and Breathe in central London, motivates his staff in several ways.

On a formal level, Gray enrolled himself and his 10 employees on a two-day Myers Briggs personality and profiling course. He believes the course was worth every penny as it enabled the staff to “get to know each other, understand each other, work better together and, ultimately, work for our clients better”.

They have also done courses on presentation and public speaking – providing an opportunity for the company to identify individuals’ strengths and weaknesses.

Gray encourages job swaps too, whether for an entire project or just half an hour, believing that this “helps staff to understand each other’s responsibilities along with grasping the limitations of a particular role”.

On a more informal level, the firm organises several trips for staff each year. Being in the creative sector, these often involve a visit to an art gallery.

Gray said that one of the most effective ways of getting to know his staff has also been the simplest. “Once a week when I pop out to get a sandwich, I invite someone to come with me,” he said. “This provides an opportunity for dialogue outside the office environment. It’s a casual but effective way of getting to know someone.”

The outcome of Gray’s efforts has been a closely-knit, competent team with high levels of staff retention. Some of his employees have been with Live and Breathe for 15 years, and the entire company attended his wedding last year.

Jacqui Van Loen, a business adviser with Insight Management, believes that you motivate staff by empowering them. She said: “When you ask people about a time they have been most excited at work, have worked their hardest and enjoyed it the most, you will find it is when they took responsibility for a project, and in doing so felt they accomplished something for themselves and for those they worked with.

“Managers need to ask themselves, are they creating an environment where employees can take responsibility, be creative and take risks without being afraid?”

She said that thanking staff is key to showing their contribution has been recognised. In fact Van Loen said that a personal thank you, together with an

explanation of what the employee achieved, is the most effective way to encourage staff. She believes this form of recognition will always be more effective than a cash reward because motivation is “intrinsic not extrinsic. It’s about recognising that people are not machines – motivation comes from within”.

If all this sounds overwhelming, there is a great deal of help available. Several agencies provide leadership coaching and business consultancy. On average, six one-and-a-half-hour sessions with an adviser cost about £4,000. If this is beyond your budget, the Management Standards Centre and The Investors in People websites offer free advice on leadership. Likewise, the Department for Business, Enterprise and Regulatory Reform (formerly the Department of Trade and Industry) has created an interactive assessment tool, Inspired Leadership, which helps you to hone your strengths and skills as a leader.

Finally, motivation may not be about the Christmas bonus, but it is definitely about an all-year-round Christmas spirit. A recent survey by the Department for Business, Enterprise and Regulatory Reform, in which 5,000 people in a variety of workplaces were asked what inspired them to follow someone, revealed that 93% wanted to see their manager create a feeling of fun, energy and excitement.

management-standards.org.uk

investorsinpeople.co.uk

berr.gov.uk

inspiredleadership.org

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