In the turbulent economic waters caused by COVID-19, businesses struggle to stay afloat. Over seven million small businesses are on the verge of foreclosing, leaving essential employees stressed over losing their source of income. (Powe, M. & Wagner, M., 2020). Meanwhile, businesses that remain open are struggling not only to make a profit, but to maintain sufficient morale among employees. Diving into the impacts and mechanisms of employee motivation reveals its necessity within the workplace in order for businesses to weather the many obstacles presented by crises.
During crises, managers are forced to adopt new practices as their position demands better performance, which is particularly relevant for businesses that have been labeled “essential” amid the current pandemic. For example, essential businesses have been forced to follow new sanitary procedures and requirements for their products. Many essential workers’ also risk sacrificing their health, and the health of those around them, to keep businesses functioning for the public. Given these circumstances, some workers may be reluctant to perform at all. As regulations are modified, it is up to the managers to promote a healthy environment while maintaining employee engagement. In short, crises like COVID-19 call for a change in managerial practices and emphasize the responsibilities of managers.
Various elements cause employees’ lack of motivation. Crises cause panic and stress while traumatic events are often perceived as life-threatening and unexpected (Butler et al., 2003). Each person’s experience involving discomfort influences their sensitivity to stress, but generally those exposed to trauma are highly susceptible to anxiety and clinical depression (Butler et al., 2003). The development of such effects distracts significantly from an employee’s ability to remain engaged at work. When a catastrophe threatens the health of the economy, employees may face financial insecurity. The possibility of cutbacks, such as wage reductions or termination of healthcare benefits, causes anxiety among employees (Keeping Employees, 2009) and lessens their motivation to remain committed to their organizational performance (Randall, J. et al., 2006). When employee motivation isn’t maintained during difficult times and performance pressures remain high, productivity and customer service suffer (Keeping Employees, 2009). If not thoroughly prepared to meet the emotional and physical needs of their workforce during a crisis, managers may be faced with a “ticking time bomb” of counterproductive activities by workers (Keeping Employees, 2009).
The COVID-19 pandemic is a primary example of how a crisis causes a decline in motivation among employees. Workers fear becoming infected by the clients they interact with. For all essential workers, especially those who are immunocompromised or elderly, this concern is legitimate. Essential workers never took an oath to put their life in outright danger for the sake of others’ needs. If a company’s management doesn’t prioritize the health of their personnel by at least following CDC guidelines for healthy business operations, workers will be apathetic toward their performance (Coronavirus Disease, 2020). As COVID-19 has spread, many workers have lost motivation since their only incentive for working is to provide for themselves and their families. Essential workers have been regularly deprived of a safe and positive work environment, a crucial pillar of employee motivation (Langelett, 2014).
There are numerous causes for why employers may struggle to motivate employees. Lack of resources and preparation are two characteristics of an organization that can damage ambition during a crisis. Only 62% of companies have crisis management plans and few among them readapt and practice their plans regularly (Arenstein, 2020). Compared to a complete crisis management plan, an employer’s improvisational plan is likely to be ineffective at preserving employee engagement. Before a crisis, managers run the risk of being trapped by the status quo, afraid to take action in case of emergency rather than taking a proactive approach that will benefit employees in the long run (Hammond, J. S. et al., 2006). Additionally, lack of financial resources contributes to employers’ struggles to motivate workers during a crisis. As a medium of exchange, money is a crucial incentive to worker motivation because it funds workers’ compulsory and discretionary spending (Reed, 2020). Without the ability to provide higher wages, promotions, or bonuses, incentives commonly used to motivate employees, employers are forced to modify their motivation tactics (Testa, B.M., 2010).
To resolve these problems in the midst of a crisis, managers need reliable solutions. To combat the issues regarding motivation, managers have to be able to support the mental needs of employees, and go beyond simple monetary incentives to keep them working enthusiastically (Randall, J. et al., 2006). In terms of budget, managers may be unable to offer immediate financial assistance, but they can provide other temporary rewards that are intangible in nature (Testa, B.M., 2010). Some examples could be perks like being able to listen to music while working, themed days and events, public acknowledgement and recognition, etc. This enables them to give employees a sense of appreciation, even though they aren’t receiving bonuses amid the crisis. Additionally, this allows managers to reassure employees that their jobs are not threatened, reducing stress in the work environment. From a mental perspective, managers can also change the environment employees work in before a crisis begins so they can have more control. Some great examples of this can be seen at Amazon in Seattle, where offices contain dog parks and have sky bridges connected to spheres; transporting employees into an entirely different environment.
Another possible solution is to create a crisis management plan. A crisis management plan can improve management’s response while controlling any potential damage to the organization’s financial condition, reputation, brand value, and market share (Barton, 1994, p. 64). From this, it’s clear that managers should have a prepared course of action. In regard to COVID-19, a proper plan might include limiting contact between grocery clerks and customers by providing personal protective equipment to ensure that those workers are abiding by health and safety standards. A crisis plan can also include the motivational tools previously stated so the manager has a guidebook for how to manage their workers. In short, managers can prepare themselves for events like the COVID-19 crisis by implementing proper planning and intangible motivational tools to foster success in the face of adversity.
In conclusion, employee motivation is sensitive within organizations everywhere, and understanding employee values helps managers engage their workers. When motivational fluctuations are negative, managers must acknowledge, understand, and learn their causes, so they can be managed correctly. By reflecting on past crises, managers can find new ways to maintain motivation and productivity among essential employees. The COVID-19 pandemic is a great opportunity for innovation in managerial procedures.
References
Arenstein, S. (2020, February 5). 62% Have Crisis Plans, But Few Update Them or Practice Scenarios. PR News Online. Retrieved May 10, 2020, from https://www.prnewsonline.com/crisis-survey-CSA-practice.
Barton, L. (1994). Crisis Management. Cornell Hotel and Restaurant Administration Quarterly, 35(2), 59–65.
Butler, A.S., Panzer, A.M., & Goldfrank, L.R. (Eds.). (2003). Understanding the Psychological Consequences of Traumatic Events, Disasters, and Terrorism. Institute of Medicine; Board on Neuroscience and Behavioral Health; Committee on Responding to the Psychological Consequences of Terrorism.
Coronavirus Disease 2019 (COVID-19): General Business Frequently Asked Questions. (2020, May 3). Centers for Disease Control and Prevention. Retrieved May 10, 2020, from https://www.cdc.gov/coronavirus/2019-ncov/community/general-business-faq.html.
Hammond, J. S., Keeney, R. L., & Raiffa, H. (2006, January). The Hidden Traps in Decision Making. Harvard Business Review. Retrieved May 9, 2020, from https://hbr.org/2006/01/the-hidden-traps-in-decision-making
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Langelett, G. (2014). How Do I Keep My Employees Motivated?: The Practice of Empathy-Based Management. Greenleaf Book Group.
Powe, M. & Wagner, M. (2020). The Impact of COVID-19 on Small Businesses. National Main Street Center. Retrieved May 10, 2020, from https://higherlogicdownload.s3.amazonaws.com/NMSC/390e0055-2395-4d3b-af60-81b53974430d/UploadedImages/Resource_Center/COVID_19/NMSC57_MSA_COVID19IMAPCTSURVEY_F.pdf
Randall, J., Novotny, S., & Larson, S. (2006). Is it Really all about the Money?: Motivating Employees in the 21st Century. Journal of Undergraduate Research at Minnesota State University, Mankato, 6.
Reed, C. K. S. (2020). The Truth about Motivating Employees to be More Productive. National Business Research Institute. Retrieved May 10, 2020, from https://www.nbrii.com/employee-survey-white-papers/the-truth-about-motivating-employees-to-be-more-productive/.
Testa, B. M. (2010). Post-Recession Incentives: Kudos Vs. Cash. Workforce Management, 89(8), 8–10.
By Bryce McVey, Thomas Lane, Victoria Vaughan, Emmelyn Affeldt, and Jenna Killman