06:16
Faizan
How to keep workers motivated and happy is a problem that businesses of all sizes face. It would seem logical to assume employees who have just received a pay rise would be more engaged with their jobs, but that may not be the case.
While almost everyone would like a higher salary, it is not practical or desirable to rely on wage hikes to incentivise staff. The most obvious reason for this is that, for most companies, dishing out regular pay increases is not affordable.
There is also no evidence that higher paid workers perform better in their jobs. Some studies have even concluded the opposite may be true. A team from the University of Leuven in Belgium found people who are motivated solely by financial rewards often had negative attitudes towards their jobs and were more likely to be unhappy in the workplace.
Of course, this does not mean you can abandon salary rises entirely, as workers who find they can no longer maintain the standard of living they are used to soon move on. However, you should give some thought to what else you can do to help keep your staff engaged with their work.
Designing an affordable reward scheme that fits with your company's goals and culture can make a real difference to the atmosphere at your premises. The right programme will encourage employees to really engage with their jobs and help discourage staff you have invested money in training from leaving.
The incentive scheme can be relatively simple and the prizes available do not have to be expensive. People usually respond well to anything that reassures them their efforts are appreciated and gives them a goal to work towards.
Major companies grasped this concept a long time ago and it is not unusual for their sales teams to be part of rewards programmes on top of their usual commission packages. The holiday club for high achievers - which sees the top-performing salesmen given an all-expenses paid break in a luxury resort - is a popular option in some industries where high-value deals are common.
While almost everyone would like a higher salary, it is not practical or desirable to rely on wage hikes to incentivise staff. The most obvious reason for this is that, for most companies, dishing out regular pay increases is not affordable.
There is also no evidence that higher paid workers perform better in their jobs. Some studies have even concluded the opposite may be true. A team from the University of Leuven in Belgium found people who are motivated solely by financial rewards often had negative attitudes towards their jobs and were more likely to be unhappy in the workplace.
Of course, this does not mean you can abandon salary rises entirely, as workers who find they can no longer maintain the standard of living they are used to soon move on. However, you should give some thought to what else you can do to help keep your staff engaged with their work.
Designing an affordable reward scheme that fits with your company's goals and culture can make a real difference to the atmosphere at your premises. The right programme will encourage employees to really engage with their jobs and help discourage staff you have invested money in training from leaving.
The incentive scheme can be relatively simple and the prizes available do not have to be expensive. People usually respond well to anything that reassures them their efforts are appreciated and gives them a goal to work towards.
Major companies grasped this concept a long time ago and it is not unusual for their sales teams to be part of rewards programmes on top of their usual commission packages. The holiday club for high achievers - which sees the top-performing salesmen given an all-expenses paid break in a luxury resort - is a popular option in some industries where high-value deals are common.
Posted in: business
