There is strong evidence to suggest that good people management is linked to positive business performance and the truism applies to IT departments as much as any other part of the business.

According to the US-based Russell Investment Group, for example, the best places to work generally outperform stock market indices by between two and three times.
The finding is also backed up by the US Department of Labor and Statistics, which indicates that while average staff turnover among technology and telecommunication companies was about 19 per cent per annum in 2007, turnover among the highest performers was just eight per cent.

Bob Lee, director of the Great Place to Work Institute in the UK, says such a correlation is not simply a coincidence. The best-performing companies work hard at getting personnel management right as part of a competitive business strategy. The rationale, says Lee, is simple.

Strong foundation

“The best companies attract the best people and manage them well,” he says. “It is challenging but it’s worth it as you end up with a level of trust that means you know you can depend on people and they on you, and when trust is high, things happen fast. People produce better, more focused work and that leads to increased productivity and innovation.”

Mike Emmott, adviser on employee relations at the Chartered Institute of Personnel and Development, also sees a positive link between motivation and productivity, not least because staff will be willing to go the extra mile. “But if you get it wrong, you are likely to see a drop in performance and staff are more likely to leave because they’re dissatisfied,” he says.

Intangible benefit

While all too many companies believe simply offering good salaries and benefits will be enough to energise and retain personnel, motivation has instead been found to rest on three key pillars ­ employee engagement, effective line management and a positive psychological contract between employer and employee ­ all of which are underpinned by that nebulous but vital word trust.

In employee engagement terms, it is crucial that personnel understand what their role is ­ as well as their meaning and value to the company. Employees want to recognise where they fit into the grand scheme of things, rather than simply feeling like a cog in a wheel.

As a result, IT directors ­ and business managers ­ need to spend time clarifying what is happening at the organisational level and how individuals can contribute to success.

Possible activity ranges from facilitating open communication about the company’s financial performance, to explaining wider goals and how they relate to the IT department.

Lynn Broadbent, group technology director at document management company EDM Group, says the more IT employees understand customer issues, the more it drives them to get things right first time. “Some techies are uncomfortable about getting involved with customers, but they can still benefit if you provide input from behind the scenes,” she says.

Two-way communication

Another important factor is providing staff with opportunities to feed opinions to you as IT director and other relevant parties in the company. Staff also need to feel that their views count and are included in decision-making.

Broadbent says managers who share, discuss and debate issues with staff tend to receive better loyalty, commitment and effort. “People feel appreciated and respected on both sides,” she says.

An individual manager’s commitment to the company will tend to filter through to the team and have a positive or negative impact on motivation. Emmott says effective line management is, therefore, significant because the person immediately above in the leadership chain has enormous influence over your work experience and how you behave.

Valued behaviours include openness and honesty, providing constructive feedback on performance, and giving appropriate and timely praise. But Emmott says that while many managers are prepared to listen and support staff, few are good at making people feel their work is recognised. Discussions about training and development needs, meanwhile, are often seen as a bridge too far ­ although they are highly valued by staff, as both areas are perceived to indicate an interest in personal progression.

Walk the talk

Lee says the single most important thing for any manager is to keep promises. “Do what you said you would do and, even if you work at a lousy company, people will trust you to deliver what you promised and to follow through when you can,” he says. “Integrity is vital for trust, and trust is built up over a long time but it can be shattered in an instant.”

Once again, trust is the fundamental word ­ and technology leaders must ensure staff members feel that they are treated fairly. The most toxic businesses tend to create blame cultures, where employees are criticised for failure and are not recognised as an essential cog of the business. Not only will employees feel unsupported and de-motivated, but such behaviour will also inhibit productive risk-taking.

“Everyone has to be open about what is going on,” says Broadbent. “People need to feel that they can let you know if things go wrong but that they will be treated fairly if they do. A blame culture is very divisive, but equally, accepting poor performance can be de-motivating ­ so you have to get the balance right.”