In my previous article, I argued for the importance of a good working environment to motivate employees beyond their salary. This discussion has led me to elaborate on my perspective, rooted in the concept of stakeholder engagement. I agree with those who rightly pointed out that a work environment alone does not and cannot put food on the table or pay bills. That is pure truth! I support the idea that organisations need to proportionally compensate their employees in monitory terms, especially in Kenya where the government takes a significant portion of salaries through various taxes.
The diagram illustrates a linear process, starting with stakeholder analysis and culminating in stakeholder loyalty. I’ve discussed some of these concepts in detail before and will continue to explore the others. The nature of stakeholder engagement influences their involvement and participation. Sustained involvement and participation can lead to loyalty, a coveted status for any organization. This loyalty, in turn, affects their involvement, increasing organizational sustainability.
Value Congruence and Motivation
Stakeholder analysis is essential as it helps identify and classify stakeholders based on their claims and the organization’s responsibility to them. The outcome of this analysis influences the nature of stakeholder engagement. Engagement helps create value congruence, affecting stakeholder participation. It provides a platform for interaction, feedback sharing, and identifying areas of convergence.
Therefore, stakeholders will be involved for the benefits they accrue. These benefits are driven by both push and pull factors. Pull factors are external, initiated by the organization to motivate or attract stakeholders.
Pull Motivation Factors
One external motivator is the organization’s reputation and image. Stakeholders want to be associated with organizations with a positive reputation. To attract stakeholders, an organization must be concerned about how they perceive it. It needs to differentiate itself through a unique brand that aligns with its vision, mission, and goals. Internal stakeholders are motivated by factors like workplace culture, benefits, and the work environment.
Additionally, stakeholders will be involved if they find the organization accessible. The organization should create awareness of available opportunities for involvement and provide convenient platforms for feedback.
The organization’s communication strategy also affects stakeholder engagement. Effective engagement requires timely and relevant communication tailored to stakeholder preferences. The two-way symmetrical communication model is a valuable tool for mutual exchange of ideas and opinions, fostering mutual understanding and decisions. Organizations should utilize new media, especially social media, to build a social network and actively engage stakeholders.
Push Motivation Factors
Push factors are internal to stakeholders and not necessarily influenced by the organization’s efforts. These factors can lead stakeholders to involvement regardless of the organization’s actions. Some push factors include stakeholder profile, demographics, efficacy, resource availability, and group membership.
Through a thorough stakeholder analysis process, an organization can categorize stakeholders according to their stakes. By employing relevant engagement strategies for different categories, the organization can meet diverse needs. This targeted approach can increase the number of stakeholders with shared values, leading to higher satisfaction levels, increased involvement, and ultimately, greater loyalty.
Stakeholder loyalty can be identified by factors such as intention to stay, positive word-of-mouth, active participation, recommending the organization to others, and providing assistance to other stakeholders.
Stakeholder Motivation and Organisational Sustainability
While continued stakeholder involvement and participation are expected to influence loyalty, a loyal stakeholder, in turn, can also influence involvement and participation, creating a cyclical relationship. The more loyal a stakeholder, the more likely they are to participate in organizational activities. This kind of engagement can contribute to the sustainability of the organization.