If you’ve noticed a steady decrease in productivity for awhile now, you may begin to wonder if the size of your employees’ paychecks is to blame — especially if you haven’t granted raises this year. There’s certainly a chance that this is part of the problem, but it may not be the only cause for their lack of motivation.
It’s definitely true that people get distracted when they’re not paid enough to enjoy a comfortable lifestyle. If most of your employees have at least one other job, take this as a good indicator that you need to increase their salaries. No one can fully concentrate on the work in front of them if they’re tired from holding multiple jobs to make ends meet.
Paying employees a competitive salary will certainly please them, but it will only increase their motivation levels to a certain extent. For example, a Gallup survey revealed that 30% of people earning less than $36,000 per year are engaged at work; 28% of people earning $36,000 to $89,000 are engaged; and 30% of those bringing in $90,000 or more are engaged.
Money Isn’t Everything.
The best way to motivate your team to reach their potential actually has nothing to do with money. Intrinsic rewards are actually what truly engages people and gets them excited to do great work. Allowing your employees to work on meaningful projects, giving them the freedom to work as they please and making them feel like a valued member of the team is actually much more important than bumping up their salary.
However, pay equity is very important. No one wants to feel like they’re earning less than their peers, as this can lead to feelings of anger and resentment. In fact, researched from the WorldatWork Journal revealed that 25 percent of workers feel that fair pay is the number one thing they want from an organization.
Instead of trying to motivate your team solely by offering financial incentives, take a look at your company culture and see if any improvements can be made to make your organization a better place to work.
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