Surprisingly, you’ll discover that money doesn’t always talk, or at least not out loud. Money was ranked No. 8 on a list of 10. Input from more than 700 companies showed us that employees are more likely to want to give that extra 10% or more when they feel like they’re an important part of the corporate puzzle, when they feel what does matter.
What else beat money as a motivator? Good communication, appreciation, respect, good examples and role models, believing in the employee, recognizing progress and not demanding perfection.
Search the web and you will find many articles that say that money is a powerful motivator. Talk to employees, however, and you’ll discover that money doesn’t always talk, or at least not out loud. Time and time again, sales organizations implement bonus structures that anyone should be able to reach, yet only a handful of people reach the highest levels. Usually the same people who were at the top before the new reward structure was announced also end up at the top afterward.
Why don’t these potential rewards cause people to change their behavior and start producing more? Simply put, because rarely do companies also do something that effectively encourages their people to work harder or gives them additional training to help them perform better. They also don’t give employees a reason that really motivates them to work harder.
Feedback from more than 700 companies showed us that employees are more likely to want to give that extra 10% or more when they feel like they’re an important part of the corporate puzzle, when they feel like what they do matters.
For years, good managers have known that turnover rates are lower at companies where there is good communication throughout the organization, especially when people are aware of the direction the company is taking and why. But it goes beyond simply telling employees what’s coming up.
When managers can tell their staff members why a specific action or change is needed, and how their contribution will make a difference, then people will generally rise to the challenge. This is especially true when a sense of “team” can be fostered, when people feel they are working together toward a common goal.
As one noted author and speaker puts it, “You can pay people to perform. You can’t pay them to excel.”
What are some of the other factors that motivate employees to go above and beyond?
1) We found a second common theme in the interviews: People at various levels of different types of organizations, from blue-collar to white-collar to no-collar, felt more compelled to do their best when they worked for someone who a) appreciated what what they were doing (and they expressed this appreciation with ease and sincerity) and b) stepped forward.
The latter is especially important during critical periods. He said a factory foreman, “We got a rush order on a Friday afternoon to ship 1,000 expansion valves Monday morning for our best refrigeration customer. They had a fire and needed the valves to keep one of their best customers. Martin, the plant manager floor, he called all together and we explained what was needed and why and he asked if we could do it. We said yes and he let them know they could say yes to his customer. Which really got us all working 24 hours, no matter what. worrying about who was supposed to be on shift or not, was that Martin asked us before committing the company, then he stayed with us all weekend, cheering us on and doing whatever it took to help, including working on the line “.
Why did the employees accept the challenge? Martin did all the right things: he clearly explained what was needed and why, he created a “team working together” environment, and he went on to help. He was part of the solution. Perhaps most importantly, he showed his employees true respect by asking if they wanted and could help.
2) Respect and appreciation are an integral part of any strong relationship and key to top performance. According to the employees we spoke with, many managers understand the importance of respect, but fall short when it comes to recognizing the efforts of their employees and peers. Time and time again, respondents told us that a lack of appreciation made them look for a new job. Research by others supports this. According to Dr. Zimmerman, “Compensation is a right, but praise is a gift.” And without the presents, the party isn’t that much fun, is it?
3) Acknowledging progress was also high on the list; this is particularly true when a major project is underway. When leaders break down a job into milestone sections, and reward and recognize each goal as it is achieved, employees are more motivated to reach the next milestones and complete the task. It is clear that it is also important that employees are recognized for their personal progress. Whether it’s doing a better job of turning in reports on time or doing well in a training course, employees like to feel like their extra work (or renewed efforts) is getting noticed and that their improved performance makes a difference.
4) Another key point to keep in mind is that the more you believe in others (kids, employees, whoever), the more they will do to prove you right.
5) Demanding perfection is demoralizing. Rewarding progress effectively produces good results.
So if these were the top 5 reasons employees gave for being motivated to do a task, where did the money come into play? It was 8 out of 10, but the employees will also tell you that this does not mean bonuses should be removed!