1 Running Head: Retention and Motivation

Retention and Motivation Alyssa Wilson California State University, East Bay

Author Note Alyssa Wilson, Department of Business, California State University, East Bay. This project objective is to improve retention and motivation at a startup company called Sidecar. Correspondence concerning this article should be addressed to Alyssa Wilson. Contact: awilson45@horizion.csueastbay.edu

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Abstract Sidecar is a startup ridesharing company founded in San Francisco in 2012. It allows people to get around the city at competitive prices. Customers who would like a ride access their Smartphone and download the Sidecar app. From the app, customers may request a ride from a nearby sidecar employee. After the ride is complete, customers pay through their Smartphone. In just five months, Sidecar has expanded to eight additional cities including Seattle, Los Angeles, Chicago, Boston, and Washington, DC ((2013, ). Sidecar Overview). Sidecar does have a few programs for retention and motivation but mostly relies on the benefits that come with ridesharing. Creating new plans to increase motivation can greatly benefit the organization and reduce the turnover rate. How to Get Started on the Creation of the Plan In order to determine how to increase motivation and decrease turnover, it is important to see what is working and what is not working. It is also a good idea to list any outside motivational problems while on the job. This will allow the company to see where they stand, and see which plan or programs for employees need to be created so they stay motivated, determined and continue working for Sidecar. Creating a way to evaluate the new programs and plans over a period of time will allow the company to see if they are working or not. An effective plan for motivation gives the company the opportunity to stay competitive in many ways. Depending on the plan, it will make the company an ideal place for people to work and use the services they provide. This will increase profits, create returning customers, lead to brand loyalty and increase the well being of employees. Plans may be evaluated through surveys, profit checks, donation increase, well being of employees, customer ratings, employee ratings and the

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number of returning customers. These plans will greatly impact the health of the organization, and prolong the life of the company. It is important to see what competitors or other organizations are doing for their employees because if it is working for their company, it has a chance it will work for this organization as well. Natural Motivators Associated with Ridesharing Sidecar does not have a big problem with motivation or retention because of the benefits associated with ridesharing, but there is always room for improvement and more potential programs to be created in order to keep employees and lower the turnover rate. Ridesharing offers many perks to keep workers happy and motivated thus continuing to work for the company. Every time an employee picks up a new customer, they receive the opportunity to potentially meet and network with some amazing, talented customers and fellow coworkers. Employees have an incredible flexibility schedule; they may work on their own time and pick when they would like to work. All they have to do is log into the app and the app will start looking for nearby customers. They are able to navigate the city better over time because it is their job to drive around the city. This may lead to discovering new places such as restaurants, clubs, and even hidden parts of the city where only locals know of. There is very high demand for these services in the city because of traffic or if customers rely on public transportation and are not able to take public transportation some days. For many employees, they use this as a second method for income. Many employees after working at Sidecar feel like they are helping people because they are giving them a cheaper way to get around and also getting them from point A to point B. Employees also feel great because they feel they are helping the environment as well. A good and bad thing about this job is that most of their employees have to rely mostly on donations when they are getting paid. Sidecar is starting to improve this method by changing

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this rule to charge a set amount of payment for the ride plus if you would like to donate more than the required rate, the customer may do so, although this rule only applies in California. Sidecar has implemented anonymous employee surveys to help address certain issues and help mitigate them has a credible effort to gain labors input and participation in finding better ways for the organization to survive. The human resources director oversees and coordinates all labor relation activities (Brooke G., email). These benefits that come with ridesharing are working because the employees feel like they are benefiting their lives in many ways. Networking and meeting new people allows employees to make new friends and could potentially lead to a new and better job. The employees are allowed to work on their own time, so they may make money anytime they want. This amazing job flexibility will keep the employees working for Sidecar because there are no conflicts with the other parts of their busy daily lives. As they work, they are able to travel all over the city, therefore learning the roads and discovering new places which makes their daily lives better because they are able to go experience these new places or shows. Because public transportation is a high increasing demand of this service in cities, the work is plentiful for employees. This is very important because if the demand was decreasing or met already, there would be no work for the employees, therefore they would not benefit from ridesharing. Since employees work at Sidecar as a second job, they do not expect a high income from this job. This income allows them to pay for their gas and other minor expenses so if they do not receive a substantial compensation they wont quit because low compensation is expected. Human resources is on the right track by creating anonymous surveys for suggestions on how Sidecar can be ran better. This will lead to many programs and suggestions to prolong the life of the company.

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Negative Occurrences Associated with Ridesharing There are also negative experiences that may occur with ridesharing that can affect motivation and retention. There is a chance that they may meet some customers who are not very nice, or problematic. Another problem could be an employees car breaks down or if they got into an accident. Most of their employees have to rely mostly on donations when they are getting paid can also be negative. Sidecar is starting to improve this method by changing this rule to charge a set amount of payment for the ride and then if the customer would like to donate more than the required rate, the customer may do so. This rule of setting the fare only applies in California. Another situation that may lower motivation is a there is no guaranteed set amount of money the employees will earn a set amount of cash, therefore not making the job worth their time. There are also no incentives for safe driving such as awards or recognition, it is always assumed for everyone. Driving around the city may cause stress for the employees because of traffic, non-law obedient pedestrians and bike riders. It also causes wear and tear on employees cars, which includes alignments of the wheels, more frequent oil and tire changes, and an increase of miles driven. There is also a chance of competition between employees. Some may become jealous over the amount of customers one is getting over the other. Many of these occurrences may negatively affect the employees motivation which may cause them to quit. Meeting depressed or problematic customers isnt fun, and it can have a big impact on your mood and well being. Mixed personalities are very common in the city because the population is so large. There are times where people do not get along and there is a chance of conflicts. This may cause employees to not get paid, have bad reviews which are not necessarily their fault or it could cause fighting. A requirement to drive for Sidecar is to have a four-door car in good condition and built after a certain year. If a driver gets into an accident, even if it was not

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their fault, they are unable to work and then they would have to quit. Pay depending on customers donations is a difficult situation because in some instances a customer may not have enough money to pay the recommended amount or the customer may not pay as generously as an employee expects. This can cause a major motivation problem because the employee will feel like the job is not worth their while or they may even get the feeling of being used. This is starting to get solved in California only by having a set amount required to be paid from the customer to the employee, but not in other states. Not having any rewards or recognition for safe driving may cause a motivation problem for employees because their good work is not being recognized by their employer. City driving may cause a lot of stress on employees for many reasons. Bad drivers on the road may cut employees off, foreigners or people who are not aware of the city might drive very slow, bike riders are almost always a pain on the streets that have no bike line, and pedestrians who do not obey traffic laws can be frustrating. These problems on the roads may make the employees un-motivated and quit. Wear and tear on employees cars may un-motivate employees because their vehicle is at stake each time they decide to work. Over time their car will start to degrade and employees might question the amount of pay vs. the wear and tear on their vehicle. They also have to take care of the car with more frequent oil changes from the amount of miles they drive, and aliments of the tires because cities are full of potholes. There is also a chance of lack of motivation from hear about other coworkers getting more customers or paid more for similar work, even if one employee may go out of their way to be a better employee and still get the same or less than one who isnt trying as hard. What to Include into Creating the Plan

In order to create an effective recommendation to increase motivation and decrease turnover rate, it is required to gather helpful information. According to the Herzberg Two-Factor

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Theory, the top six motivation factors are achievement, recognition, the work itself, responsibility, advancement and growth. (Laura, D. Chapter 7 Retention and Motivation) Hygiene factors are part of the Herzberg theory which states some things will not necessarily motivate employees, but will cause dissatisfaction if they are not present. These top six hygiene factors are company policies, supervision, relationship with a management, work conditions, salary and a relationship with peers. (Laura, D. Chapter 7 Retention and Motivation)

Recommendations on Creating the Plan and their Effects One potential motivational problem is Sidecars compensation method and failure to recognize and reward good behavior/good work. (Morrison, E., Burke, G., & Greene, Meaning in motivation: does your organization need an inner life?). To make sure a pay-for-performance system work, the organization needs to ensure the following: Standards are specific and measureable, the system is applied fairly to all employees, the system is communicated clearly to employees, the best work from everyone in the organization is encouraged, rewards are given to performers versus nonperformers, and there are substantial rewards for high performers (Laura, D. Chapter 7 Retention and Motivation). As we have already addressed, pay isnt everything, but it certainly can be an important part of the employee retention plan and strategy. To address these tactics, a reward system to good employees must be in place. It is recommended to have reward gathering which allows the top performers to be recognized, and rewarded. It should be clear to why these top performers are getting these rewards and being recognized for their good work. A way we can measure these is through a performance appraisal. Performance appraisals are a formalized process to assess how well an employee does his or her job. The effectiveness of this process can contribute to employee retention, in that employees can gain constructive

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feedback on their job performance. This process can help ensure the employees upper level selfactualization needs are met, but it also can address some of the motivational factors discussed in the Herzberg theory, such as achievement, recognition, and responsibility.( Laura, D. Chapter 7 Retention and Motivation)

Communities who have a website with member-only message boards are very effective for chatting with people who have the same interests and are a part of the same organization. Having a member-only message board where employees may express many helpful ideas with each other would help motivate them. It could have areas where to post certain topics. One topic that would be helpful is an area to post about how their job is going, and how Sidecar could improve to meet the needs of employees. Another topic could be a place where you can chat to fellow employees about customers or their driving whether it was a positive or negative experience. Employees are driving around the city which causes stress for the employees because of traffic, non-law obedient pedestrians and bike riders. This would allow other members learn about other customers, how to handle future difficult situations that may occur and it can also be a method to de-stress. One more topic could be where you can share pictures of your car, and how it is decorated for the maximum customer experience, and how they can get bigger tips. This would tighten the community of employees, and encourage them in the workplace.

Sidecar could work with local tire and oil-changing companies to provide employees with discounts. One of the main problems for employees is. wear and tear on their cars, which includes alignments of the wheels, more frequent oil and tire changes, and an increase of miles driven. By having discounted alignments and oil changes, it can reassure that Sidecar is taking care of them, and they can feel better about driving for longer periods of time. This will let them

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to work more and have a better attitude when it is time for oil changing and aliment services are done because it would be discounted. ((1999). How To Motivate Warehouse Workers.) Sidecar can learn from a near competitor company Lyft, from what is working with their company. Lyft is very similar to Sidecar; they are in many of the same cities and provide the same service, ridesharing. Lyft is very good at creating an attractive brand with its signature pink mustache. Drivers are required to put a pink mustache in front of their car while on the job. This makes the employees feel like part of the Lyft family and it also has its consumer and marketing advantages as well. This motivates Lyft employees because they feel like they are a part of something bigger. Sidecar does this to a certain extent, by requiring employees to put on a shirt with the companys name and two side jackets that go over the side view mirrors. If Sidecar had a logo that was more fun and creative which allows employees feel like a part of the Sidecar family, it would be very motivating. Another method Lyft uses to motivate employees is posting their pictures on Lyfts social media sites ((2013).Pictures-Lyft.). If you look at their Facebook page, you can see many of their employees and how they have pimped out their cars. This encourages the employees to make their cars more fun for customers, and also makes the employees want to use their car more for work because it is all decorated in the inside. If Sidecar did the same, it would have the same effect on their employees. Conclusions and Future Studies In order to reduce future turnover, it would be beneficial to ask exiting employees to take a voluntary standardized exit interview. This would help conduct future programs for employee satisfaction and motivation. Some questions could include; what is your primary reason for leaving? What did you like most about your job? What did you like least about your job? What

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incentives did you utilize while at our company? Which incentives would you change and why? Did you have enough training to do your job effectively? These questions are crucial to see what programs need to be changed, deleted or created. By implementing these recommendations, Sidecars employees will feel part of a community, taken care of and motivated. The community will be strengthened and they will stay with the company longer, which will decrease the turnover rate.

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Reference Page Brooke G., email, November 2013 Francis, J., & Hunte, T. (2003). Generations and Motivation: A Connection Worth Making. Journal of Behavioral & Applied Management, 30(1), 98-115. doi:1930-0158 Laura, D. Chapter 7 Retention and Motivation. Human Resource Management (Vol. 1). Nyack, NY: Flat World Knowledge . Retrieved from http://catalog.flatworldknowledge.com/bookhub/reader/2807?e=#portolesedias_1.0-ch07 Morrison, E., Burke, G., & Greene, L. (2007). MEANING IN MOTIVATION: DOES YOUR ORGANIZATION NEED AN INNER LIFE?. Journal of Health & Human Services Administration, 30(1), 98-125. doi:1079-3739 (1999). How To Motivate Warehouse Workers. A Guide to Effective Motivation and Retention Programs In the Warehouse, 31(6), 9. (2013, ). Overview - Sidecar. Retrieved November 30, 2013, from http://www.side.cr/ (2013).Pictures-Lyft. Retrieved December 1, 2013, from https://www.facebook.com/lyft