The Salary of Employees Versus Other Incentives

Lack of motivation in the workplace is a major problem for employers and managers. Well, at all times, money and a decent salary were a reward for the labors. But in our time, research suggests that money has little effect on their interest. Of course, they will continue to perform tasks for the required minimum, but no more.

What motivates today’s workers?

It’s a common misconception that money can motivate people to work harder all the time. To put this notion into perspective, imagine doing a job you don’t enjoy at all. No matter how much money your employer offers you will still have the same opinion about the work and more money would seem as a reimbursement for your “trouble”. There are occasions when we’re in need to make more money so we work harder in order to accomplish that goal. However, in those cases, it’s not the money that drives our enhanced productivity; actually, money is just a tool that we need to acquire in order to accomplish our source of motivation.

Occasional rewards for those that show impressive work results, regular “good work” notes, holiday gift cards, or simple public thanks for dedicated service can power up the engines among workers. It’s not something that requires too many resources or trouble to accomplish. 

A study conducted by Tim Judges and his colleagues shows that in less than 2 percent of the time salary of employees has some sort of influence on the worker’s productivity, which is close to no influence at all. Additionally, there is a 4.8 percent overlap between salary level and the overall satisfaction with the salary, which means that salary satisfaction depends on different aspects. The fact that the study included various research results published during the last 120 years and sums the experience of more than 15,000 people from different parts of the world, shows the gravity of the results that Tim and his team managed to produce.

Offer more than just cash

Career development is a powerful tool for building employee motivation. The opportunity to grow within the company can make all the difference when it comes to improving work interest. This is especially important in large companies where individual engagement can easily go without notice. Small companies are better suited for those that want to work their way to the top, simply because it’s easier to recognize a dedicated worker. When there’s little or no acknowledgment of your efforts it’s difficult to keep the juices flowing and stay motivated. Companies that reward dedication with higher positions, better work conditions, etc. can hope for a motivated manpower.

What many business owners fail to grasp is that hiring a top talent is not always about the money. Surely, you can expect to hire an expert for the same amount of money that you would give to a novice. However, if you wish to keep the top talent eager to stay with your company and help the entire team grow, you need to think beyond simple financial satisfaction. A recent survey shows that around 60 percent of workers would work for less money in case the company is more empathetic. Simply put, people like when you show compassion, understanding, and true care for your workers, both professionally and non-work related.

Company car, reserved parking lot, phone, organizing family days, and similar perks can motivate talents to join your crew more than a fat paycheck in some cases. The logic behind this argument is quite good, actually. When a person is a wanted asset, that person knows that finding a better-payed position is not an issue. However, offering additional perks and benefits, fused with the prospect of both personal and professional growth can make all the difference when it comes to staying with the company or joining one.

Conclusion

Humans are a complex species and it’s never easy to find a simple, universal solution in any regard of human relations. Money can motivate up to some point, further engagement can depend on overall happiness at work, company culture, relations between team members, all the way to the amount of time one has to spend in order to get to the office. Keeping all these factors in balance is of paramount importance for employee motivation.