Bringing Passion to Starbucks, Travelocity

(page 2 of 2)

Companies spend an estimated $46 billion a year on gift cards, travel rewards, and other "incentives" as a way to motivate their sales team or employees. They do so for good reason. Low motivation is often cited as the number one pain-point for human resources professionals. While there's nothing wrong with giving employees and sales reps rewards, don't confuse incentives with your primary function as a manager or small business owner: to inspire your employees every day to higher levels of achievement. Financial incentives are extrinsic and short-lived. Human connection creates fulfillment and long-lasting change.

Like Schultz, Travelocity CEO Michelle Peluso (BusinessWeek.com, 8/2/06) is a leader who understands that engaged employees hold the key to customer satisfaction. "People internalize compensation for a few hours or days, but it doesn't fire them up to get out of bed every morning, unless of course it's bonus day," she once told me. "Seriously, you don't get up saying, 'I've got great compensation.' You go to work because you believe in the people around you, your peers, your colleagues, and when you believe your company does something great for your customers."

Here are several ways that Peluso reinforces the company's commitment to the customer by engaging her employees in the company's vision:

• Weekly e-mails to all staff. The e-mails describe how Travelocity is holding to the company vision to "champion the customer experience." In addition, employees are asked to nominate a colleague they believe reflects the company's core values. Peluso features the nominees in her weekly e-mails along with detailed descriptions of how their service ties back to the mission.

Consistent e-mail communication is a key component to keep your staff motivated every day. Do your employees only hear from you when there is a problem or do you use e-mail to communicate stories of outstanding customer service?

• Arrange monthly brown bag lunches anyone can attend. Peluso makes herself available to employees who want to participate in more informal, free-flowing conversations. For Travelocity, these lunches are energizing, lively, and invite open and honest discussion. It reminds me of Cisco (CSCO) CEO John Chambers, who hosts a monthly breakfast for employees celebrating a birthday. Give your staff plenty of face time and create environments in which they feel comfortable expressing concerns and asking hard questions.

• Make quarterly visits to offices. Peluso discusses the company's financial status and how it can continue to improve its position among competitors. Employees, especially young people, want to feel as though as they are part of the growth of the business. Keep them apprised of financial results and how their individual performance contributes to the health of the team.

Employees who are disengaged from the company's mission will fuel discontent in others on the staff as well as among customers. You can't afford it. But motivation starts with you. Take a cue from Schultz and Peluso and make employee engagement your No. 1 priority. The customers, sales, and profits will follow.

Carmine Gallo, a business communications coach and Emmy-Award winning former TV journalist, is the author of Fire Them Up! and 10 Simple Secrets of the World's Greatest Business Communicators. He writes his communications column every week.