Do your Intrinsic Motivations affect the way you cut costs?
One of the most exciting things for us here at Attuned is that we get to explore the complexities of intrinsic motivation. COVID has thrown so many more complexities into our world, without even considering the unseeable psychological layers (without Attuned, of course), it’s complicated in how we approach tough challenges. But of course we look at things through that deeper layer of intrinsic motivation.
Now, I am always curious about the many ways our unique blend of motivators inform the way we see the world we are moving through, influencing our individual approaches to decision making. Right now, with COVID, we are collectively living through what will certainly be one of the most traumatic sets of circumstances that we will share in our lifetimes. We are seeing people deal with this turmoil in myriad ways. We are seeing unbelievable empathy. We are recognizing the people around us for their bravery. We are seeing intrinsic motivation play a role in remarkable feats of innovation.
Unfortunately, for many of us, we are also seeing tough choices being made in the workplace.
COVID is pushing companies to make furloughs, layoffs, pay cuts -- I personally do not know anyone who is not facing some version of this challenge. It got me curious about how people with different motivational profiles would answer the same tough question: How would you reduce costs in your company (or department) 20% to help the company survive the uncertainties of COVID?
Assembled here are the intrinsic motivator profiles of 10 professionals and their answers to that tough question. A 35-year age range is represented, but no respondent is below the age of 30. It'll be most interesting if you compare their response to their profile without knowing much about them, and explore how their motivators are informing their answers.
Professional #1: Program Manager
Top Intrinsic Motivator: Autonomy
“If I had to cut costs, I’d first see what our outgoing bills were (leases, subscriptions, food, etc.) and then see what usage was--try to cut costs that way to avoid laying off people. Then if I had to lay off people, I’d see if any could move to part time and try for that.
I’d also see if we could increase revenue streams anywhere, and if all else failed, I’d lay off the humans--as few as possible and only after attempting other solutions.
Laying off people is hard, as it's difficult to later re-hire, which is also cost intensive and brings with it its own financial risks.”
Professional #2: Startup Founder and CEO
Top Intrinsic Motivator: Competition
“We were in this position a couple of months ago. We were very transparent about our process and reasoning.
At first, we asked if there was anyone on our team who would voluntarily take either a 3 - 6 month sabbatical or move to 80% work week. Then we had executives take a 30% pay cut and all employees move to 80% work week and salary (i.e. four day work week).
Before the decision was finalized we held a company-wide Q&A session so that our team could ask us about it. We have the best team we’ve ever had. Our approach was we didn’t want to lay anyone off.”
Professional #3: Accounting and Finance Manager
Top Intrinsic Motivator: Financial Needs
“I considered the following cost reductions:
Salary & bonus cut
Stop hiring new employees
Offer voluntary resignation
Cancel or change outsourcing companies, contractors, professionals, vendors
Cancel rental contracts if possible and/or negotiate the rent fee
Suspend marketing expenses such as advertising, events
Ask employees not to use unnecessary expenses”
Professional #4: Landscape Architect
Top Intrinsic Motivator: Innovation
“This actually happened, and I am in complete agreement with it.
The president is taking no salary, and our more junior staff have moved to 4-day work weeks. We’ve negotiated our office rent to 50%.”
Professional #5: Sales Director
Top Intrinsic Motivator: Innovation
“What I did was
Look to reduce office space and cut office-related costs such as office phones and other utilities,
Ask all employees to take 30 days of unpaid leave (in lieu of layoffs) during a six month period. I had to spend some time creating an accurate simulation of exactly how many days would amount to how much savings.
Apply for tax reductions by meeting government requirements for keeping people on staff and so on”
Professional #6: Marketing Manager
Top Intrinsic Motivator: Innovation
“I’d think about what the dream account/project for my department or company was, and try to envision the leanest team and resources necessary to excel at that project.
Ideally, I wouldn’t be laying people off, but the reality is that we lose sight of the original dream quite fast, and start adding on things that are nice-to-haves as we get more comfortable, both in business and in life.
I will say that I would offer help in finding other positions for staff that I’d lay off. I wouldn’t be proud of it, I wouldn’t sleep well and it would be pretty gnarly all the way around.”
Professional #7: Artist
Top Intrinsic Motivator: Progress
“At my last job I'd have fired the CEO and frozen hiring!
I would find more ways to do the same thing more cheaply and with fewer promotional projects. More using/recycling of existing materials/software. Try to get rid of any subscriptions and move to open source. Stop buying new equipment.”
Professional #8: Library Conservator
Top Intrinsic Motivator: Social Relationships
“Speaking very generally, I would cut our biggest, non salary expense. This would mean a reduction in our services but preserving our trained staff to find innovative ways to maintain some of the service levels. This is better in the long run not just as a way to preserve morale and trust, but also less costly than firing and rehiring and re-training. Of course this presumes that this is a temporary situation.
I think I could go on and on. But that is the core of it. I think it’s better to focus the cut on the biggest expense rather than spread it out by cutting back here and there on tissue paper and paper clips.”
Professional #9: College Professor
Top Intrinsic Motivator: Social Relationships
“I had a meeting to discuss what to cut. Cutting the team’s hours would be the last thing. I started with everything else first.”
Professional #10: Marketing Executive
Top Intrinsic Motivator: Security
“I’d really try to avoid laying people off because I just don’t think there will be any jobs for them. So cutting them would basically just be sending them in the direction of homelessness, which I just wouldn’t want to do.
I think all companies should be thinking about pivoting into manufacturing, domestic manufacturing. This has been a tremendous wake up call, in a way that we hadn't imagined.
I mean, we all knew it was possible, but now… and it is so clear that we can’t just depend on China [for our manufacturing]. Maybe it would be possible to negotiate with unions (because there would be so few opportunities) to bring the costs of manufacturing domestically down further.
But I’d start with cutting out all the perks, the food, etc. I’d keep people on remote work as much as possible and try to reduce the rental office space. So maybe keep floors 5 and 6, but try to get rid of 7 and 8. Then I’d look at incentivizing people to get off the health care plan and purchase on the ACA marketplace, perhaps by paying them a bit more (this feels kind of evil already).
Then I’d look at asking people to take 80% pay and work 80%, and definitely get C-levels to take a zero salary to show solidarity. (Maybe something like $50k just so they can get along, if necessary). Of course, no bonuses.”
MOTIVATIONAL DIVERSITY
I was struck by how all of the respondents, and particularly by those with lower scores for “Altruism”, exhibited the same behavior; namely, to avoid laying people off at all costs. But their rationale for doing so and the path of thinking they took to get to the same place were quite different.
As a manager during these tough times, now more than ever it’s important to consider how you communicate with your motivationally diverse teams. We’ve given a small sampling of US and Japan based executives on the approach they took when COVID first started affecting their organizations, and how they approached cost-cutting, cross-referencing the approach with their intrinsic motivators. Combining these real world ideas with the big data we have seen on how motivational data of employees has changed with COVID, can help develop your emotional intelligence as a manager.
Whatever your unique make up of intrinsic motivator is you’ll need to navigate these uncertain times with grace, and thoughtfulness, to make work more meaningful for your organization. We’ll stay curious on how intrinsic motivators interplay with the challenges we face and continue to deliver insights to help develop good managers.
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Kelly Kikuchi
Marketing Manager