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Money Ain’t the Only Motivator

Guest post by: Betsey Nash

Article Overview: What can you do to retain your best employees when money isn't available? Is encouragement enough in a down market?

Money Ain’t the Only Motivator

"There are three kinds of lies: lies, damned lies, and statistics," famously said by Benjamin Disraeli. I remember the quote when I think of the many businesses that are crunching numbers and gazing at crystal balls in an attempt to revise their compensation budgets. Seems we all estimated average wage increases of about 3.8% in early 2009, then downgraded them to 2.6%, and now expect wage increases - if there are any at all - to be below 2% in 2010. 54% of respondents to a nationwide survey said they froze all wages in 2009, and only 13% of them planned to thaw them in 2010. The consumer price index is down nearly 2% over the last 10 years, so at least inflation won't eat up most of any increase employees might see. But increases to benefits are estimated to be anywhere from 5% to 15%, and there are few employers expedited to absorb anywhere near that much. In fact, health care premiums have risen 131% in the past 10 years; workers' contributions to premiums have risen 128%-about 10 times faster than inflation. The Affordability Act will help small businesses right away with a tax break, but it will take more than that to make health care really affordable.

If you have relied on salary and benefits increases to motivate your employees over the years, it's time to find another way. Not every employee feels lucky to have a job - some are starting to look around to see what's offered by those businesses who are already feeling the up-tick. What else are you doing to keep your valuable employees from looking for greener pastures?

I've read study after study about why people work or why employees stay at one employer, and one can get caught up in the minutia, but a common thread through them all is: Humanity. Treat an employee like they have a brain and a life, and they may cling to you as if you took a thorn out of their paw. It doesn't matter the generation, it seems; most employees respond to praise and individual attention.

One study of more than 1,500 employees in various work settings discovered that the most powerful motivator was personalized, instant recognition from their co-workers and managers. It stated that if a manager simply asks for employee involvement, that in itself is motivational.

This study, conducted by Wichita State University, shows that the top motivation techniques are:

• Personally congratulating people who do a great job
• Writing a personal note or email about the specific job well done
• Publicly recognizing people for good work

This information backs up what we all learned in the first Megatrends book back in 1982 - all this high tech leaves us wanting more touch. 63% of the respondents in the Wichita State survey agreed that a pat on the back is a meaningful motivator.

So, here is a mid-year reminder: Remember that even of you don't have the dollars, you should set aside some time to pay attention to those employees who are key to your success. It will work. No lie.

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Article Tags: business, encouragement, money, motivator, promotion, raises



Related Forum Posts
Re: What or Who Sparks Your Business Interest - It's interesting to see what the different motivations are by Age Category. I've noticed this around me: 20 to 29yr olds: Motivator: Money 30 to 39yr olds: Motivator: Success/Ambition 40 to 49yr olds: Motivator: Family comes first 50 to 59yr olds: Motivator: Leaving a legacy i've only gone that far in my analysis. Of course this is a braid generalization but I find that it helps direct my marketing to individuals in different age brackets. The product/service can be the same but the Marketing message (Benefit Statement) to a 20 year will revolve around "Money" vs. a 30-something would be on their "Self Image"
Re: Which would you start: a Blog or Online Community? - It is a difficult decision to make. Lets start it this way - What are you more interested in? Money? or Friends? or Both? If its purely Money, then Blog might be an appropriate answer. But consider this - It will be people (visitors) that will bring traffic to your blog and then Money will follow. This will be possible after a time and during this time it will be your friends who will be the starters. If you are looking for friends only, then its true that not many will be interested in knowing how you have beaten them in the game or the other way round. So it will be preferable to have a Forum where they can share ideas with you and others. But you can share your insider knowledge with them and invite comments from your Blog. You can also put up information on what others (including your friends) don't know about Tennis. The blog you create can provide News, Inside Information and also Techniques that can be used by the new entrants in the world of Tennis.
Making Money in 2011 - Hello forum members! As we draw closer to the new year I thought it would be appropriate to change the title of our forum category "Making Money in 2010" to "Making Money in 2011" - I'm looking forward to some interesting discussions and wish everyone a prosperous New Year!
QuickBooks vs. Microsoft Money vs....? - I have always used Microsoft Money to run my business - accounting, invoicing, etc. It came with my computer when I got it and integrated well with my online banking system so everything is a breeze. It only takes 30-60 minutes every quarter to do the bookkeeping (keep in mind that I have a very simple business - no inventory, very little invoicing, I do all my payments by credit card, etc). Is QuickBooks or Money the best accounting tool for small business owners? Or is there something even better?
$$$ - Money making is a talent. If used properly it can achieve desired results.


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