Read the case and answer the questions that follow. Studying this case will help you better understand how concepts relating to motivation can be applied in an organization such as the United Way.

The United Way is a nonprofit organization that has been around since 1887. Founded to help charities raise funds, the United Way also provides grants and coordinates emergency relief services. It is one of the largest nonprofit agencies in the United States, with about 1,300 local organizations and a reach covering 46 countries.62

In a difficult economic climate, nonprofits such as the United Way—as well as the charities they support—have found themselves in a trying situation. Donations to all kinds of charitable organizations have dropped precipitously. As people have less discretionary money available, they use what they have for their own needs and, therefore, give less to charities. Simultaneously, more people desperately need assistance from others to make ends meet. In a recent year, the United Way experienced a 68 percent increase in the number of requests for basic needs.63 This is a clear indication that individuals and families have been hit hard by the recession. With this increase in need and a decrease in donations, the organization is experiencing an incredible strain.

So how does a manager motivate employees and volunteers during tough economic environments?

Keeping a large staff of full-time employees as well as tens of thousands of volunteers motivated is not an easy task even in the best of times. Furthermore, for an organization that relies on the passion and dedication of those associated with it, motivation becomes even more challenging when financial incentives are out of the question. So, the United Way had to find the means to motivate its staff in a way that was also financially responsible. What it discovered was that training employees and volunteers could be a key method of enriching professional lives. With 9,300 employees and countless volunteers, tackling this in an effective manner is challenging, but vital. Heidi Kotzian, director of marketing and national events at the United Way, said the organization “will succeed only if our staff has the tools and knowledge they need to effect change.”64 Thus, training not only keeps people associated with the organization excited about their roles within the United Way but also facilitates ongoing organizational performance.

Traditionally, training and development of employees is an area of an organization’s budget that gets slashed in economic downturns. Broad-stroked budget cuts are the norm when both nonprofit and for-profit entities attempt to keep costs to a minimum. Often, training is seen as a luxury expense and is put on the back burner until the economic situation improves.

But the United Way is taking a different approach by stepping up its training efforts. Working with the marketing team, the training function was revamped and treated like a “brand”—something that could be readily recognized by employees and even eagerly sought out by those same employees. A catalog consisting of 34 pages of training opportunities is marketed to every employee in the organization.

Feedback from employee participants in various training sessions provides continuous improvement. The organization can determine what works and what doesn’t. It also collects data on what training and development skills employees desire to learn. This is important because meeting the needs of the staff is vital for maintaining motivation. For volunteers who do not receive a salary or wage but devote sometimes countless hours of their time, maintaining a high degree of motivation is essential.

For Kotzian, the results speak for themselves. The organization has seen increased efficiencies and also more teamwork and improved communication. “We have seen a boost internally,” she said, “from those recognizing the benefits of reaching local United Way staff through learning courses and events.”65