OnineMediaDaily
by Laurie Sullivan, Yesterday, 4:29 PM
Brand messages and incentives make consumers pay attention to ads, according to a recent study. In fact, combining the two strategies increases interaction by 91% and brand perception by 38%, as well as improved recall and purchase intent, according to findings from KN Dimestore and SocialVibe released Monday.
While 48% of survey participants reported they may initially opt-in to engage with a brand for the incentive, they stay and pay attention to the brand message.
SocialVibe calls the strategy "value-exchange brand advertising" and defines it as ads that ask for a consumer's attention in exchange for something they want, such as virtual currency for social games or making a donation to charity. It differs from offer-based, cost-per-action (CPA) advertising, which requires a sign-up or purchase of something.
The study, which gathers data from more than 30,000 survey respondents, set out to determine if and why incentives prompt people to engage with the advertisements, how they affect consumer perception of the brands, and whether they influence people to visit the company's Web site or tell a friend about the offer. Participants interacted with ads from U.S. brands across financial services, CPG, entertainment, e-commerce and technology categories between June and July of 2011.
Engaging with the ad increased the odds that the consumer would purchase the product. For instance, when survey participants were asked about their intent to purchase a brand, another CPG product in the study showed an increase of 32 points, or a 110 percent increase. A similar increase was seen in the entertainment category, where the intent to view a specific television program rose 32 points.
The study demonstrates that incentives through ads drive Web site and in-store traffic, as well as purchases and conversions. Consumers who gain a satisfied view through incentives tend to visit the brand's Web site more often and 36% are more likely to shop for brand-related items at physical store after interacting with the ad.
As part of the study, KN Dimestore, a subsidiary of Knowledge Networks, demonstrated how consumers took the opportunity to earn virtual currency to Zynga game players in exchange for interacting with a movie studio's ad. Consumers who had interacted -- as well as not interacted -- with the ad, were asked if they had gone to see the movie in theaters. The study revealed 32 out of every 100 people who interacted with the ad bought tickets and saw the movie.
Tuesday, September 20, 2011
TV Ad Futures: Set-Top Boxes, Network Sites Key To Targeting Customers
MediaDailyNews
by Jim Harenchar, Yesterday, 8:45 AM
No one knows who coined the phrase "a race against time, but that's precisely the situation many programmers and operators find themselves in. They are losing viewers to the more sophisticated operators in the digital world -- a problem that will only worsen with time. An added challenge: they don't often know specifics on lost viewers.
Knowing your viewers/audience is the core of the issue. Except for a single major cable network, traditional TV broadcasters have only a vague idea of who their viewers are and what their preferences are. Compare that with what Internet-based operators like Google, Hulu and Netflix know about their audiences. For example, Google knows nearly everything about you.
They have tracked every search you have ever done. If you participate in Google Chrome or any type of Google analytics, they have captured all of your individual household data -- including your cell phone number. Most importantly, they have a clear understanding of what you like -- and what you don't. Based on that, they can tailor and target advertising specifically to you.
Other online services, like Hulu Plus and HBO Go, which offer subscribers television series and movies, likewise track individual viewer preferences. If, for example, I enjoy HBO'S "Entourage" and miss an episode of the cable TV series, I can find it, or others, via HBO Go.
HBO records my preference and, as it introduces a new program that's similar to "Entourage," I'll get an email that says something like: Hey, we're launching this new show, called "Boardwalk," that we think will appeal to "Entourage" fans like you who've been watching that program for years.
Savvy networks have jumped at the chance to interact with viewers. Studies show that knowing viewer preferences can add to incremental profits by as much as 20%. How? It can offer premium ad rates, due to the level of viewer-enhanced data that has been captured and self-reported.
Advertisers are increasingly demanding more of what we call T.I.M. -- advertising that is Targetable, Interactive and Measurable. Today's advanced advertisers care less about viewership or ratings and more about gathering viewer information and behavior. This requires building a dialogue with the viewer -- something the interactive technologies are best suited for.
As noted, satellite television providers and one major cable network can do the same -- not the rest of the cable TV industry. With the exception of one cable operator, technology today allows for so-called zone targeting that divides the country into some 800 zones, which is not nearly precise enough.
What's needed are ways to reach -- and interact with -- individual households so cable networks can know their viewing behavior and customize advertising to reach them. Industry analysts predict that nearly 100 million homes could be equipped with this technology by late 2012.
How is that done? At least two solutions are attracting attention. One is to drive as many cable TV viewers as possible to use the Internet to connect and interact with the Web sites of individual channels or providers, thus leveraging the power of the Web to capture viewer behavior.
Another is to provide viewers with advanced set-top cable boxes already in use in the forward-looking part of the industry. They will enable them to connect and interact with the channels they are watching, and that will enable those channels, and their cable providers to record and utilize individual household preferences and other unique information. This is a large part of the perceived value of the recent Motorola acquisition by Google to aid Google TV.
Either way, viewers can be encouraged to provide more information about themselves -- plus their viewing habits, which are already being recorded -- so they can be ad-targeted more precisely. For example if a customer is using the Internet to get information about home-equity loans from Bank A, Bank B, learning this, can offer an ad for its loans.
And, if tracking a particular householder's viewing habits yields information that he spends a lot of time watching a particular sports channel, an advertiser can target him with relevant ads.
These strategies, coupled with standard business intelligence analytics and data modeling, are giving the cable operators a fighting change to remain in the game. It's a constantly evolving landscape and both cable operators and advertisers recognize the impact these technologies will have on a nearly $70 billion market.
by Jim Harenchar, Yesterday, 8:45 AM
No one knows who coined the phrase "a race against time, but that's precisely the situation many programmers and operators find themselves in. They are losing viewers to the more sophisticated operators in the digital world -- a problem that will only worsen with time. An added challenge: they don't often know specifics on lost viewers.
Knowing your viewers/audience is the core of the issue. Except for a single major cable network, traditional TV broadcasters have only a vague idea of who their viewers are and what their preferences are. Compare that with what Internet-based operators like Google, Hulu and Netflix know about their audiences. For example, Google knows nearly everything about you.
They have tracked every search you have ever done. If you participate in Google Chrome or any type of Google analytics, they have captured all of your individual household data -- including your cell phone number. Most importantly, they have a clear understanding of what you like -- and what you don't. Based on that, they can tailor and target advertising specifically to you.
Other online services, like Hulu Plus and HBO Go, which offer subscribers television series and movies, likewise track individual viewer preferences. If, for example, I enjoy HBO'S "Entourage" and miss an episode of the cable TV series, I can find it, or others, via HBO Go.
HBO records my preference and, as it introduces a new program that's similar to "Entourage," I'll get an email that says something like: Hey, we're launching this new show, called "Boardwalk," that we think will appeal to "Entourage" fans like you who've been watching that program for years.
Savvy networks have jumped at the chance to interact with viewers. Studies show that knowing viewer preferences can add to incremental profits by as much as 20%. How? It can offer premium ad rates, due to the level of viewer-enhanced data that has been captured and self-reported.
Advertisers are increasingly demanding more of what we call T.I.M. -- advertising that is Targetable, Interactive and Measurable. Today's advanced advertisers care less about viewership or ratings and more about gathering viewer information and behavior. This requires building a dialogue with the viewer -- something the interactive technologies are best suited for.
As noted, satellite television providers and one major cable network can do the same -- not the rest of the cable TV industry. With the exception of one cable operator, technology today allows for so-called zone targeting that divides the country into some 800 zones, which is not nearly precise enough.
What's needed are ways to reach -- and interact with -- individual households so cable networks can know their viewing behavior and customize advertising to reach them. Industry analysts predict that nearly 100 million homes could be equipped with this technology by late 2012.
How is that done? At least two solutions are attracting attention. One is to drive as many cable TV viewers as possible to use the Internet to connect and interact with the Web sites of individual channels or providers, thus leveraging the power of the Web to capture viewer behavior.
Another is to provide viewers with advanced set-top cable boxes already in use in the forward-looking part of the industry. They will enable them to connect and interact with the channels they are watching, and that will enable those channels, and their cable providers to record and utilize individual household preferences and other unique information. This is a large part of the perceived value of the recent Motorola acquisition by Google to aid Google TV.
Either way, viewers can be encouraged to provide more information about themselves -- plus their viewing habits, which are already being recorded -- so they can be ad-targeted more precisely. For example if a customer is using the Internet to get information about home-equity loans from Bank A, Bank B, learning this, can offer an ad for its loans.
And, if tracking a particular householder's viewing habits yields information that he spends a lot of time watching a particular sports channel, an advertiser can target him with relevant ads.
These strategies, coupled with standard business intelligence analytics and data modeling, are giving the cable operators a fighting change to remain in the game. It's a constantly evolving landscape and both cable operators and advertisers recognize the impact these technologies will have on a nearly $70 billion market.
CBS Reports Strong Advertising For TV, Radio, Out-Of-Home Ad $
MediaDailyNews
by Wayne Friedman, 97 minutes ago
Despite overall U.S. economic malaise, current fourth-quarter advertising business is healthy for CBS. There have only been a few last-minute cutbacks on season-long TV advertising deals made in June.
"I know the world wants us to say, 'Gee, the economy is down and advertising is down,' but that's not the case, "says Les Moonves, president/CEO of CBS Corp., speaking at Goldman Sachs Communacopia Conference. "The advertising climate is very strong."
Plus, Moonves says there has been little in the way of upfront advertising cutbacks that can occur before the start of the season. Between the upfront selling period in June and the start of the season in September, TV advertisers can make last-second adjustments -- mostly cutbacks -- to their proposed season-long broadcast deals.
"There have been very very little cancellations, [in terms of upfront] holds-to-orders," he says, "basically matching that of year ago and a year before that." Moonves added that advertising is strong for all TV, radio, outdoor businesses.
Although advertising still commands the bulk of CBS revenues -- more than 60% -- other revenue is growing in share, such as international program sales, helping to smooth out possible sharp changes in its ad revenue.
"The international marketplace is burgeoning," he says, noting that revenue has doubled from a few years ago. Overall, CBS can sell an TV show internationally for a collective $2 million an episode, a very profitable business.
"We have changed; we are not a cyclical company." says Moonves. CBS owns 70% of the programming it airs. "The guy with the most good content wins. We have the biggest library in the world."
Moonves reiterated his concern over Hulu in the U.S: "I don't like joint ventures with competitors," he says. "My content is really the family jewels."
He says domestic Hulu deals are not only exclusive; TV media owners only get 70 cents on the dollar for their TV shows that run on the premium digital video site. Also, Hulu in the U.S. offers up a broader exposure of shows -- which can devalue programming. "We don't want our content out so much," explains Moonves.
While CBS will not sell programming to Hulu, it has no problem making international cash deals with the company. In the future, CBS would consider Hulu Plus, which in theory offers the possibly of giving media companies more money for its TV shows.
In order of programming revenue priority, Moonves says, the No. 1 place for CBS shows is advertising on the CBS network. Next, CBS counts on revenue from international and domestic syndication.
After that, the network turns to Netflix and Amazon. Of the Netflix deal, Moonves says CBS has sold only 7% of its library to the DVD-mail order/streaming TV service, but not much in the way of recent TV episodes or shows. "Netflix wanted everything we had on the air," he says.
Retrans fees continue to grow for CBS, where CBS stations will get fees from cable/satellite/telco operators, as well as a piece from CBS affiliates for their deals. This could account for "hundreds of millions of dollars a year," says Moonves.
CBS still keeps its eye on programming costs -- which only grow a couple of percentage points a year. A couple of seasons ago, Moonves says CBS cancelled "Without a Trace," a co-production of CBS and Warner Bros., because costs escalated to $4 million an episode. It was replaced by "The Good Wife, which cost $1.6 million an episode.
by Wayne Friedman, 97 minutes ago
Despite overall U.S. economic malaise, current fourth-quarter advertising business is healthy for CBS. There have only been a few last-minute cutbacks on season-long TV advertising deals made in June.
"I know the world wants us to say, 'Gee, the economy is down and advertising is down,' but that's not the case, "says Les Moonves, president/CEO of CBS Corp., speaking at Goldman Sachs Communacopia Conference. "The advertising climate is very strong."
Plus, Moonves says there has been little in the way of upfront advertising cutbacks that can occur before the start of the season. Between the upfront selling period in June and the start of the season in September, TV advertisers can make last-second adjustments -- mostly cutbacks -- to their proposed season-long broadcast deals.
"There have been very very little cancellations, [in terms of upfront] holds-to-orders," he says, "basically matching that of year ago and a year before that." Moonves added that advertising is strong for all TV, radio, outdoor businesses.
Although advertising still commands the bulk of CBS revenues -- more than 60% -- other revenue is growing in share, such as international program sales, helping to smooth out possible sharp changes in its ad revenue.
"The international marketplace is burgeoning," he says, noting that revenue has doubled from a few years ago. Overall, CBS can sell an TV show internationally for a collective $2 million an episode, a very profitable business.
"We have changed; we are not a cyclical company." says Moonves. CBS owns 70% of the programming it airs. "The guy with the most good content wins. We have the biggest library in the world."
Moonves reiterated his concern over Hulu in the U.S: "I don't like joint ventures with competitors," he says. "My content is really the family jewels."
He says domestic Hulu deals are not only exclusive; TV media owners only get 70 cents on the dollar for their TV shows that run on the premium digital video site. Also, Hulu in the U.S. offers up a broader exposure of shows -- which can devalue programming. "We don't want our content out so much," explains Moonves.
While CBS will not sell programming to Hulu, it has no problem making international cash deals with the company. In the future, CBS would consider Hulu Plus, which in theory offers the possibly of giving media companies more money for its TV shows.
In order of programming revenue priority, Moonves says, the No. 1 place for CBS shows is advertising on the CBS network. Next, CBS counts on revenue from international and domestic syndication.
After that, the network turns to Netflix and Amazon. Of the Netflix deal, Moonves says CBS has sold only 7% of its library to the DVD-mail order/streaming TV service, but not much in the way of recent TV episodes or shows. "Netflix wanted everything we had on the air," he says.
Retrans fees continue to grow for CBS, where CBS stations will get fees from cable/satellite/telco operators, as well as a piece from CBS affiliates for their deals. This could account for "hundreds of millions of dollars a year," says Moonves.
CBS still keeps its eye on programming costs -- which only grow a couple of percentage points a year. A couple of seasons ago, Moonves says CBS cancelled "Without a Trace," a co-production of CBS and Warner Bros., because costs escalated to $4 million an episode. It was replaced by "The Good Wife, which cost $1.6 million an episode.
Wednesday, September 7, 2011
Global TV Stats Down, But U.S. Viewing On The Rise
MediaDailyNews Wednesday, Sep 7, 2011
by Steve McClellan, Yesterday, 5:42 PM
A sweeping new report from Swedish tech firm Ericsson that studied viewing habits across 13 developed countries found that fewer people are tuning in to watch regularly scheduled TV, recorded programs and DVDs, while on-demand content from the Web -- including TV shows, movies and clips -- is rising steadily.
By contrast, according to Nielsen, TV viewing in the U.S. is growing from all sources -- including traditional TV, where audiences tuned in an average 22 minutes more per month in the first quarter of 2011 compared to the same period a year ago.
The Ericsson report, part of an annual trend study the company has conducted since 2004 via its ConsumerLab unit, was based on a survey of 13,000 respondents from June to August.
In six of the countries surveyed -- the U.S., Sweden, Germany, Spain, UK and Taiwan -- the report found that a combined 84% of this year's respondents indicated that they watched scheduled broadcast TV more than once a week. By comparison, 88% of the respondents in last year's survey said they watched more than once a week, indicating a year-to-year four-percentage-point decline.
Among the same group, there was also a year-to-year drop in the amount of recorded broadcast TV that was watched more than once a week: 45% this year, versus 50% in 2010. And viewing for DVDs was down a percentage point.
In addition, the amounts of viewing to streamed movies, TV shows and video clips were all up by two to three percentage points across the six countries, the report found.
Broken out by country, the study found that Spain had the highest percentage of on-demand viewing -- 44% -- while the U.S. was second with 41% and the UK third with 40%.
"On-demand viewing is increasingly popular, while broadcast viewing has decreased," stated Anders Erlandsson, Ericsson's head researcher for the trend report.
TV has not been as negatively impacted by the Internet as print has to date, Erlandsson added. "But looking ahead, ConsumerLab research indicates that on-demand viewing continues to grow in popularity, and might eventually surpass broadcast."
by Steve McClellan, Yesterday, 5:42 PM
A sweeping new report from Swedish tech firm Ericsson that studied viewing habits across 13 developed countries found that fewer people are tuning in to watch regularly scheduled TV, recorded programs and DVDs, while on-demand content from the Web -- including TV shows, movies and clips -- is rising steadily.
By contrast, according to Nielsen, TV viewing in the U.S. is growing from all sources -- including traditional TV, where audiences tuned in an average 22 minutes more per month in the first quarter of 2011 compared to the same period a year ago.
The Ericsson report, part of an annual trend study the company has conducted since 2004 via its ConsumerLab unit, was based on a survey of 13,000 respondents from June to August.
In six of the countries surveyed -- the U.S., Sweden, Germany, Spain, UK and Taiwan -- the report found that a combined 84% of this year's respondents indicated that they watched scheduled broadcast TV more than once a week. By comparison, 88% of the respondents in last year's survey said they watched more than once a week, indicating a year-to-year four-percentage-point decline.
Among the same group, there was also a year-to-year drop in the amount of recorded broadcast TV that was watched more than once a week: 45% this year, versus 50% in 2010. And viewing for DVDs was down a percentage point.
In addition, the amounts of viewing to streamed movies, TV shows and video clips were all up by two to three percentage points across the six countries, the report found.
Broken out by country, the study found that Spain had the highest percentage of on-demand viewing -- 44% -- while the U.S. was second with 41% and the UK third with 40%.
"On-demand viewing is increasingly popular, while broadcast viewing has decreased," stated Anders Erlandsson, Ericsson's head researcher for the trend report.
TV has not been as negatively impacted by the Internet as print has to date, Erlandsson added. "But looking ahead, ConsumerLab research indicates that on-demand viewing continues to grow in popularity, and might eventually surpass broadcast."
Key 18-34s Watch TV Via Mobile
MediaDailyNews
Thursday, Sep 8, 2011
by David Goetzl, 8 hours ago
There has been considerable talk about a generation accustomed to watching TV on laptops forgoing a traditional cable subscription. How about the remote control? Could millennials usher in the downfall of that techno wonder?
A survey conducted under the aegis of Boston-based media consulting group Altman Vilandrie & Co. shows that 41% of 18-to-34s would rather use a smartphone, tablet or computer keyboard to switch channels or program the DVR than the traditional handheld device.
"Instead of the age-old argument about who holds the TV remote, families will soon be squabbling over whose smartphone is controlling the TV," stated Altman Vilandrie Director Jonathan Hurd.
Altman Vilandrie noted that a would-be decline of the remote control -- which would come at a time when the devices are critical for interactive advertising -- is one potential impact of 18-to-34s bringing new behaviors to TV viewing.
Just one-third of the group said they "watch TV shows during the normal broadcast time on a daily basis," compared to 58% for those ages 35 plus.
Also, "cord shaving" -- a term for spending less time with cable -- is on the rise. Usage of online and mobile viewing is up -- as 20% said they spend less time with cable than they used to because of online video, up from 15% last year.
"Consumers are removing the shackles of the traditional prime-time TV lineup and creating their own personal networks of preferred programming and viewing times," stated Hurd.
The survey, conducted by Research Now for Altman Vilandrie, also found that 11% of smartphone owners in the 18-to-34 segments watch TV shows and movies on mobile phones daily.
Cable operators, however, may be able to leverage the popularity of HD to hold onto younger subscribers. The survey showed that 75% of 18-to-24s are "bothered by a lack of HD."
Research Now canvassed 1,000-plus U.S. consumers in July for the results.
Thursday, Sep 8, 2011
by David Goetzl, 8 hours ago
There has been considerable talk about a generation accustomed to watching TV on laptops forgoing a traditional cable subscription. How about the remote control? Could millennials usher in the downfall of that techno wonder?
A survey conducted under the aegis of Boston-based media consulting group Altman Vilandrie & Co. shows that 41% of 18-to-34s would rather use a smartphone, tablet or computer keyboard to switch channels or program the DVR than the traditional handheld device.
"Instead of the age-old argument about who holds the TV remote, families will soon be squabbling over whose smartphone is controlling the TV," stated Altman Vilandrie Director Jonathan Hurd.
Altman Vilandrie noted that a would-be decline of the remote control -- which would come at a time when the devices are critical for interactive advertising -- is one potential impact of 18-to-34s bringing new behaviors to TV viewing.
Just one-third of the group said they "watch TV shows during the normal broadcast time on a daily basis," compared to 58% for those ages 35 plus.
Also, "cord shaving" -- a term for spending less time with cable -- is on the rise. Usage of online and mobile viewing is up -- as 20% said they spend less time with cable than they used to because of online video, up from 15% last year.
"Consumers are removing the shackles of the traditional prime-time TV lineup and creating their own personal networks of preferred programming and viewing times," stated Hurd.
The survey, conducted by Research Now for Altman Vilandrie, also found that 11% of smartphone owners in the 18-to-34 segments watch TV shows and movies on mobile phones daily.
Cable operators, however, may be able to leverage the popularity of HD to hold onto younger subscribers. The survey showed that 75% of 18-to-24s are "bothered by a lack of HD."
Research Now canvassed 1,000-plus U.S. consumers in July for the results.
Nielsen Brings TV Metrics To Online Ads
MediaDailyNews
by David Goetzl, September 8, 2011
10 hours ago
Nielsen said its new service -- which looks to bring TV-style measurement to online advertising, including video -- has received a stamp of approval from the Media Rating Council. Tabbed Online Campaign Ratings, Disney networks, Facebook, GroupM and Starcom MediaVest are among the clients using it.
The system -- which been in test for some time and was announced in September 2010 -- hit the market Aug. 15, meaning that MRC accreditation largely parallels the launch. Nielsen has launched products that have received wide use, such as the TV C3 metric, well before MRC offered its verdict.
The Online Campaign Ratings seek to provide overnight data on online audience reach, frequency and gross rating points. Demographic data is attached.
MediaDailyNews
The service melds data collected from Nielsen's traditional TV and online panel with demographic information provided by online data providers.
Steve Hasker, president, media product and advertiser solutions, Nielsen, stated that the ratings system would supply "the trusted metrics needed to prove the true value of advertising on a site, in terms that are familiar to brand marketers and comparable to other media."
Advertisers are intrigued by the prospect of using the online data in conjunction with TV ratings to get a fuller picture of cross-media measurement.
GroupM's Lyle Schwartz stated that the new streams allow "the ability to analyze consistent multiscreen metrics ... with valuable insights into the value of online advertising and its role in the communications spectrum."
MRC is a nonprofit that seeks to ensure industry measurement systems are reliable and
effective.
by David Goetzl, September 8, 2011
10 hours ago
Nielsen said its new service -- which looks to bring TV-style measurement to online advertising, including video -- has received a stamp of approval from the Media Rating Council. Tabbed Online Campaign Ratings, Disney networks, Facebook, GroupM and Starcom MediaVest are among the clients using it.
The system -- which been in test for some time and was announced in September 2010 -- hit the market Aug. 15, meaning that MRC accreditation largely parallels the launch. Nielsen has launched products that have received wide use, such as the TV C3 metric, well before MRC offered its verdict.
The Online Campaign Ratings seek to provide overnight data on online audience reach, frequency and gross rating points. Demographic data is attached.
MediaDailyNews
The service melds data collected from Nielsen's traditional TV and online panel with demographic information provided by online data providers.
Steve Hasker, president, media product and advertiser solutions, Nielsen, stated that the ratings system would supply "the trusted metrics needed to prove the true value of advertising on a site, in terms that are familiar to brand marketers and comparable to other media."
Advertisers are intrigued by the prospect of using the online data in conjunction with TV ratings to get a fuller picture of cross-media measurement.
GroupM's Lyle Schwartz stated that the new streams allow "the ability to analyze consistent multiscreen metrics ... with valuable insights into the value of online advertising and its role in the communications spectrum."
MRC is a nonprofit that seeks to ensure industry measurement systems are reliable and
effective.
8 Reasons Your Employees Don’t Care
bNET
By Jeff Haden | September 6, 2011
Pay only goes so far. Higher salaries are like the bigger house syndrome: Move into a bigger house and initially it feels roomier, but after awhile larger becomes the new normal.
Employees don’t automatically perform at higher levels if wages are higher because commitment, dedication, and motivation are not based on pay. No matter how high the salary, if you treat employees poorly they won’t care — about their jobs or your business.
Here are eight reasons employees don’t care:
1.No freedom. Best practices are definitely important, but not every task deserves a best practice or micro-managed approach. Autonomy breeds engagement and satisfaction. Autonomy also breeds innovation. Even manufacturing and heavily process-oriented positions have room for different approaches or paths. Decide which process battles are worth fighting; otherwise, let employees have some amount of freedom to work they way they work best.
2.No targets. Goals are fun. (I’ve never met anyone who wasn’t at least a little bit competitive.) Targets create a sense of purpose and add meaning to even the most repetitive tasks. Without a goal to shoot for, work is just work.
3.No sense of mission. We all like to feel a part of something bigger. Striving to be worthy of words like “best” or “largest” or “fastest” or “highest quality” provides a sense of purpose. Let employees know what you want the business to achieve; how can they care about your dreams if they don’t know your dreams?
4.No clear expectations. While every job should include decision-making latitude, every job also has basic expectations regarding the way certain situations should be handled. Criticize an employee for providing a refund today even though last week refunds were standard procedure and you’ve lost the employee. (How can I do a good job when I don’t know what doing a good job means?) When standards change, always communicate those changes first — then stick with them. And when you don’t, explain why this particular situation is different.
5.No input. Everyone wants to be smart. How do I show I’m smart? By offering suggestions and ideas. (Otherwise no matter how hard I work I just feel like a robot.) Deny me the opportunity to make suggestions, or shoot my suggestions down without consideration, and I’m just a robot — and robots don’t care. Make it easy for employees to present ideas and when an idea doesn’t have merit take the time to explain why. You can’t implement every idea, but you can make employees feel good every time they make a suggestion.
6.No connection. The company provides the paycheck, but employees work for people. A kind word, a short discussion about family, a brief check-in to see if they need anything… person-to-person moments are much more important than meetings or formal evaluations. Employees want to be seen as people, not numbers. Numbers don’t care. People care — especially when you care about them first.
7.No consistency. Most employees can deal with a boss who is demanding and quick to criticize… as long as she treats every employee the same way. (Think of it as the Vince Lombardi effect.) While it’s okay — in fact necessary — to treat employees differently, all employees must be treated fairly. Similar achievements should result in similar praise and rewards. Similar offenses should result in similar disciplinary actions. The key to maintaining consistency is to communicate; the more employees understand why a decision was made, the less likely they are to assume favoritism or unfair treatment.
8.No future. Every job should have the potential to lead to something better, either within or outside the company. I worked my way through college at a manufacturing plant. I had no future with the company because everyone understood I would only stay until I graduated. One day my boss said, “Hey, let me show you how we set up the job scheduling board.” I looked at him oddly; why show me instead of someone else? In response he said, “Some day, somewhere, you’ll be in charge of production. Might as well start learning now.” Take the time to develop employees for jobs they hope to fill — even if those positions are outside your company. They will care about your business because they know you care about them.
By Jeff Haden | September 6, 2011
Pay only goes so far. Higher salaries are like the bigger house syndrome: Move into a bigger house and initially it feels roomier, but after awhile larger becomes the new normal.
Employees don’t automatically perform at higher levels if wages are higher because commitment, dedication, and motivation are not based on pay. No matter how high the salary, if you treat employees poorly they won’t care — about their jobs or your business.
Here are eight reasons employees don’t care:
1.No freedom. Best practices are definitely important, but not every task deserves a best practice or micro-managed approach. Autonomy breeds engagement and satisfaction. Autonomy also breeds innovation. Even manufacturing and heavily process-oriented positions have room for different approaches or paths. Decide which process battles are worth fighting; otherwise, let employees have some amount of freedom to work they way they work best.
2.No targets. Goals are fun. (I’ve never met anyone who wasn’t at least a little bit competitive.) Targets create a sense of purpose and add meaning to even the most repetitive tasks. Without a goal to shoot for, work is just work.
3.No sense of mission. We all like to feel a part of something bigger. Striving to be worthy of words like “best” or “largest” or “fastest” or “highest quality” provides a sense of purpose. Let employees know what you want the business to achieve; how can they care about your dreams if they don’t know your dreams?
4.No clear expectations. While every job should include decision-making latitude, every job also has basic expectations regarding the way certain situations should be handled. Criticize an employee for providing a refund today even though last week refunds were standard procedure and you’ve lost the employee. (How can I do a good job when I don’t know what doing a good job means?) When standards change, always communicate those changes first — then stick with them. And when you don’t, explain why this particular situation is different.
5.No input. Everyone wants to be smart. How do I show I’m smart? By offering suggestions and ideas. (Otherwise no matter how hard I work I just feel like a robot.) Deny me the opportunity to make suggestions, or shoot my suggestions down without consideration, and I’m just a robot — and robots don’t care. Make it easy for employees to present ideas and when an idea doesn’t have merit take the time to explain why. You can’t implement every idea, but you can make employees feel good every time they make a suggestion.
6.No connection. The company provides the paycheck, but employees work for people. A kind word, a short discussion about family, a brief check-in to see if they need anything… person-to-person moments are much more important than meetings or formal evaluations. Employees want to be seen as people, not numbers. Numbers don’t care. People care — especially when you care about them first.
7.No consistency. Most employees can deal with a boss who is demanding and quick to criticize… as long as she treats every employee the same way. (Think of it as the Vince Lombardi effect.) While it’s okay — in fact necessary — to treat employees differently, all employees must be treated fairly. Similar achievements should result in similar praise and rewards. Similar offenses should result in similar disciplinary actions. The key to maintaining consistency is to communicate; the more employees understand why a decision was made, the less likely they are to assume favoritism or unfair treatment.
8.No future. Every job should have the potential to lead to something better, either within or outside the company. I worked my way through college at a manufacturing plant. I had no future with the company because everyone understood I would only stay until I graduated. One day my boss said, “Hey, let me show you how we set up the job scheduling board.” I looked at him oddly; why show me instead of someone else? In response he said, “Some day, somewhere, you’ll be in charge of production. Might as well start learning now.” Take the time to develop employees for jobs they hope to fill — even if those positions are outside your company. They will care about your business because they know you care about them.
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