Pay rises vs better employee recognition
One of the hardest things as a manager is ensuring your staff are motivated. But what motivates employees? According to recent research by Canada Life Group Insurance almost a third (32%) of respondents claim a higher salary would boost their workplace motivation. But is a higher salary the answer to a happy and motivated employee? Will employees feel appreciated and engaged in an organisation after receiving a pay rise?
Money, money, money!
Is it all just about the money? Well a survey conducted among 3,000 employees by Research Now, on behalf of Capita Employee Benefits, found that the most popular employee benefit cited was in fact a pay rise. But will a pay rise help employers increase and sustain employee motivation and engagement? Probably not, if an employee feels overworked and undervalued before a salary increase, they will likely feel that way again shortly after the salary increase. Motivation and recognition have got to stem from something more long lasting and substantive than money.
As a source of sustained performance money does not last nor is it the sole contributing factor to enhancing employee engagement. In fact various research undertaken suggests that the association between salary and job satisfaction is very weak. Employees are motivated by more than just money, so if you want an engaged workforce money is not the only answer.
Does recognition outweigh a pay rise?
According to the research by Capita Employee Benefits, more than a third (34%) of employees believe being thanked or recognised for their work is the most valuable workplace benefit, after a pay rise. So why is recognition so important? Well quite simply employees want to feel that they are appreciated for the work they are doing. A simple ‘thank you’ can prove far more valuable in the long run than pay rises or cash bonuses. Recognition gives your employees a sense of belonging and a feeling of being appreciated.
Employee recognition is more important now than ever
In the current economic climate, employers aren’t always able to offer their staff a pay rise, even if they feel they deserve it. Companies are facing budget cuts, pay freezes and bonus schemes are being restructured and in some instances cut altogether. So how can you as a manager ensure your staff feel valued and appreciated in this difficult climate?
Well, research has shown that saying ‘thank you’ to your employees can prove invaluable. Recognition gives your employees a sense of belonging and a feeling of being appreciated. According to a research project, undertaken by Deloitte, organisations where recognition occurs have 14% better employee engagement, productivity and customer service than those without.
Q: So what is the next step in creating a culture of appreciation?
A: Implement an employee recognition scheme
Employee recognition schemes are a simple and effective way for businesses to engage their employees and reward them for the work they have done. A well-designed employee recognition programme can offer organisations improved morale and lower voluntary turnover rates and best of all it doesn’t have to be expensive to implement.
The benefits speak for themselves
Implementing an employee recognition scheme brings many positive benefits to an organisation:
- Increased productivity; giving regular thanks and recognising the work of employees results in a more productive and engaged workforce.
- Greater employee satisfaction; employees enjoy their work, which means they spend more time focusing on the job and less time complaining.
- Improved morale; recognising employees for their contribution vastly improves their working relationships with managers, peers and customers.
- Higher loyalty; employees who feel recognised will be more likely to stay with an organisation, enabling employers to retain quality employees resulting in lower employee turnover.
- Enhanced teamwork and relationships between employees.
- Lower negative effects such as absenteeism and days taken with stress related issues.
- Positive work environment within the organisation.
John is responsible for the motivation division of p&mm ltd and a Director on the board of the IPM. Specialising in developing, implementing and directing many large scale staff motivation, recognition and employee communications programmes.
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John Sylvester has been largely responsible for the development and growth of the motivation & incentive discipline with P&MM.
Having worked in the motivation agency business since completing a business degree in 1984, John joined P&MM in 1989 and the main board in 1996.