Dear colleagues,
I found this very interesting article which is called „Nine Ways To Keep Your Company's Most Valuable Asset -- Its Employees“ (http://www.forbes.com/sites/forbesleadershipforum/2013/08/20/nine-ways-to-keep-your-companys-most-valuable-asset-its-employees/)
The author compares the loss of an employee who leaves the company with the loss of a valuable asset. According to studies, replacing a key person costs between 70% and 200% of the persons‘s compensation.
The author mentions that most of the retention strategies cost very little. Most of them are psychological, such as mentoring, having fun at work or having supporting managers and superiors. Hire the right people and leveraging the manager-employee relationship are other important factors.
I personally agree with the author regarding non-monetary rewards. I think it can be much more motivating to have a good relationship with your work colleagues or to feel like your work is valued than simply get paid more. Moreover, the fact that you can progress in your job and that you are doing something useful are very important.
However, I believe that all this can be motivating once you get a sufficient salary. This means that if you don't get enough compensation for your work efforts, even great non-monetary rewards won't be enough to create satisfaction.
What do you think, are non-monetary rewards more important for employee motivation than simply paying more? From your personal experience, what motivates you to stay with an organization?
Thanks for this article Verena and your thoughts about this topic.
AntwortenLöschenI fully agree with it, that as soon as you have, in your personal understanding, a salary which is sufficient for the life standard you want to achieve, only non-monetary rewards increase your motivation. It is, like we learned during our first year, the intrinsic motivation what keeps you in a company, after the hygiene factor of enough money is given.
For me this is exactly the issue why I started with my secondary education, although my salary was good in comparison to my educational level. There was no motivation any longer to do this task until my retirement.
Very interesting article! I think companies hardly reflect on what the loss of an employee means to them, unless the employee performed very well or bad.
AntwortenLöschenI agree with both of you. Motivation cannot only be increased by financial rewards, companies need to find other solutions, how to motivate employees: making feedback sessions, increasing trust and responsibility, organising a yearly excursion, etc.
I agree that as long as you have earn enough to afford a "decent life" and certain amenities, only monetary rewards are not sufficient enough to stay motivated on the job. I think it is much more important to receive recognition for what you are doing and that superiors praise good work and not only point out the mistakes. Also trust and responsibilities are important to stay motivated. If all this is not given it will not only harm the employees well-being but also the company, as an unmotivated employee that does not get recognition does not really care whether he performes efficiently.
AntwortenLöschen