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How Does Walmart Motivate Their Employees?

In chapter 11 (Groundswell: Winning in a World Transformed by Social Technologies), Charlene Li and Josh Bernoff talked about how to use the power of the groundswell to motivate employees. 
         



Motivation is an employee's intrinsic enthusiasm about and drive to accomplish activities related to work. Motivation is that internal drive that causes an individual to decide to take action. Every person has activities, events, people, and goals in their life that they find motivating.

The trick for employers is to figure out what employees really want and create a motivating work environment.


The workplace is evolving and shifting. Leaders need to realize that the wants and needs of employees are changing. We saw this when we learned how to create a culture where Millennials and members of Generation Z can thrive.


Empowerment and motivation happen when people solve their own problems and create their own aspirations and expectations. Once the team knows what they really want, it’s time to create an action plan to motivate team performance.


Walmart, which is one of the biggest retailers of the world has been very successful in motivating its employees, by the uses of both Intrinsic and Extrinsic rewards.

Individuals don't win, teams do,said Sam Walton as the owner of Walmart.


Sam Walton believed running a successful business boils down to 10 simple rules and they helped Walmart become the global leader it is today.
  1. Commit to your business.
  2. Share your profits with all your associates, and treat them as partners.
  3. Motivate your partners.
  4. Communicate everything you possibly can to your partners.
  5. Appreciate everything your associates do for the business.
  6. Celebrate your success.
  7. Listen to everyone in your company.
  8. Exceed your customers' expectations.
  9. Control your expenses better than your competition.
  10. Swim upstream.
(You can read more about Sam's business rules in his book, Sam Walton, Made in America: My Story.)



Seven of these ten rules are about employee relations, which shows how important Walmart places on employee relations.

      
Intrinsic reward is the reward achieved by having a motivation that is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on external pressure or desire for reward. 

Walmart takes all of its effort to make employees feel like they are part of the company, one of the facts proved about this reward is the used of term“association” instead of “employee”, by referring the employees as associates, it can make them feel more engagement with the company. Another fact would be by calling all their levels with their first name and only displays the first name on the ID badge. Sooner, from hourly associates to top managers or even company founder call each other by their first names only. Everyone in the company is getting more involves by calling the other’s first name because it can create a family-oriented business instead of boss-oriented one. As the results people at Walmart are full with respect regardless of their position.




      “Money and ownership alone aren't enough, Set high goals, encourage competition, and then keep score,” said Sam Walton.

Walmart makes sure their employees are given jobs that are not easy, instead they give them challenging ones, they encouraged competition among their associates in order to keep them on their toes and working hard, Walmart also advocated a term called ‘cross-pollination’, whereby managers from different departments would switch jobs with each other in order to stay challenged. By doing this, the employees will feel respected because they are believed that they have the potential to achieve challenging task and make a good performance results. 

Extrinsic reward is a reward such as money, gifts, and recognition. This reward are used by Walmart to motivate their workers, for extrinsic motivations Walmart encourage their workers through health care benefit and financial benefit. All associations at Walmart and their immediate family can get a health insurance at a very low price which includes primary doctor, pharmacies, vision, and dental. For financial benefit, Walmart workers also given a lower/discount price to buy stock from Walmart, and sometimes the workers can get additional income depending on the company performance.
      

The Walmart in Ware, Mass. has a sign telling employees — Walmart calls them "associates" — what the Walmart stock price is.

"Today's stock quote...tomorrow depends on you," the sign says.
(A sign inside a Walmart in Ware, Mass.)


As a result from both extrinsic and intrinsic motivations, Walmart has created an exciting environment workplace with respect, prospective, and value.
        
Do you think Walmart's employee motivation strategy is effective? What other companies do you know that do this well?


Sources:




Comments

  1. I think Wal-Mart's approach to motivating employees is very good. I have seen similar phenomena in some internet related companies. I once heard an interview with the programmer on the radio. The host asked why these programmers why they worked so hard and even worked overtime until late at night with no addtional payment. The answer is simple. The company gives them equity. They see themselves as part of the company, and the boss often works overtime with them, and add nothing to his paycheck. This has created a corporate culture that work overtime for stock increase.

    ReplyDelete
  2. Hi Phoebe
    thanks for sharing the Walmart example of motivating employees. I have the same point with you. creating an environment or climate for employees to feel free share their real opinions. This enviornmnet could stimulate the innovation of the company.

    ReplyDelete

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