Non-financial rewards proven to motivate in a recession
February 16, 2010 by Christian SchappelPosted in: In this week's e-newsletter - benefits, Incentives, Latest News & Views, Management, Money, Pay and benefits, Retention and turnover
Even if you can’t give out raises this year, a recent study found there are ways you can motivate employees that don’t require dipping into the company’s bank account.
A new McKinsey Quarterly study revealed the following actions can help improve performance as much as (if not more than) cash incentives:
- praise from direct supervisors
- attention from company leaders, and
- opportunities to lead projects.
In fact, the study found that the supervisors getting the most from their workers in this economy are the ones praising workers, delegating responsibilities and staying in constant contact.
But the study also made sure to point out one thing: These actions only work for employees who are satisfied with their current pay.
Tags: McKinsey Quarterly, motivate employees, pay, study
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February 18th, 2010 at 1:33 pm
What about those so-called “leaders” who don’t acknowledge employees, which leads to poor morale?
February 18th, 2010 at 1:52 pm
Supervisors, managers, and company leaders should already be praising their employees. But, as most of us know, that’s not the case.
The key statement given is that this works only for employees who are currently satisfied with their pay. What happens when the economy continues to decline and pay dissatisfaction continues to rise? I’ll be curious to find out what suggestions will be made then.
February 18th, 2010 at 2:58 pm
HR Departments and Employers need to be creative to answer Julia’s question. Having information available for associates to reach out to agencies that might be able to assist them with high power bills, housing subsidy if they are entry level workers. Being proactive and having these types of resources available for employees shows that even if you can’t pay higher wages you care and have an idea of what they may be going through. You would be amazed at some of the programs that are out there that can assist workers and families. Having employee garage sales where employees are able to sell some of their slightly used items to others and pick up other items from others can also help. Offering Money Management classes to associates and their significant other can be helpful as well.
Ignoring the fact that people may really hurt without pay increases is thoughtless on the part of the employer. The least we can do is offer empathy and some possible avenues to resolve their issues helps.
February 18th, 2010 at 5:11 pm
Karen H, thanks for some great insights. I especially like the idea of arranging for money management training for interested employees.
February 26th, 2010 at 9:05 am
There are other ways to keep employee morale up too; simple things.
Just giving employees a couple hours off on a Friday goes a long way towards morale.
Unfortunately, where I work we haven’t had raises in three years and every benefit we had is long gone. Adding to that, the recent blizzards caused the office to close for a couple of days and all hourly employees (women) lost two days pay that week. However, the salary employees (men) were paid for full weeks; with five of them not even working one day during the week! Knowing this has built resentment and makes the female workers feel unappreciated and even vindictive towards the company.
Like Karen H said, a ‘little’ empathy goes a long way; I feel if a company can pay employees a full week salary for sitting home, they should compensate the ones that struggle to come in every day and keep the office running.
I know this is gender discrimination, but it’s still a paycheck every week!