In a now-cliché line from the movie Jerry Maguire, Cuba Gooding Jr.’s character yells, “Show me the money!” But in reality, employees are often more motivated by non-cash rewards and recognition. Sure, all employees want to be paid competitively for their job and their industry, but most will agree that a great place to work offers more than just a paycheck. Studies dating back to the early 1980s demonstrate that people want more from work than money.
What do employees want?
In survey after survey I have read over the years, here are the usual responses when employees are asked, “What makes a company a great place to work?”
• Recognition and appreciation
• Emphasis on work/life balance
• Opportunities for career growth
• Competitive compensation and benefits
• Strong leadership
• Excellent communication
• Organizational culture (caring and learning environment)
When employees mention money, they usually just state a desire that their pay be competitive, rather than a blanket request for more cash. But in my experience, most managers believe money is the single best solution to a range of employee problems.
If an employee gives notice, these managers respond by offering to pay him more. If a staff member expresses concerns about the workplace, they pay her more. How do they deal with workers they fear can be wooed away by a competitor? By paying them more.
When money does work to retain or motivate employees, it’s often found to be only a short-term solution. If the work environment is intolerable or uncomfortable, money alone will not inspire the employee to tough it out.
Many people have told me they would accept less pay if they found an environment that includes some of the bullet points above. They would rather have a boss who recognizes good work and provides recognition—even a simple “thank you” once in a while. Employees’ relationships with their supervisors are critical to their job satisfaction. They want to work for managers who treat them with respect, support their need for balance in their lives by providing flexibility, and communicate well.
I think this is good news for employers—and excellent news for smaller family businesses. Why? Because most of these suggestions can be implemented with little or no cost. They are good management practices that can be instituted across the board for family and non-family members alike and incorporated into the expectations for managers. All employees, family members or not, will benefit and in return will add value to the company. Developing engaged employees will bring a positive return to the bottom line.
Creating a great place to work
Here are four big-impact ideas you can consider to make your business a great place to work. Most of them require no real lead time or start-up time; they can be implemented immediately.
1. Ask employees what they want—and give it to them! Instead of trying to read their minds, simply ask for their ideas about the best way to show your appreciation. You may be surprised at the answer. I have seen management create elaborate achievement awards for employees who were actually embarrassed by the attention and would have preferred quiet recognition. On the other hand, there are some people who thrive on public attention. Make sure the rewards you give are meaningful to the person who receives them; don’t take a one-size-fits-all approach.
2. Communicate with your staff. Keep your employees informed about important developments. Even if the news is bad, share it. Communicating the reality of the situation is better than keeping employees in the dark and allowing them to fear the worst. Non-family employees, particularly, appreciate being brought into the inner circle (when appropriate).
Encourage managers and employees to listen to each other. This is a skill most of us can improve.
Offer constructive feedback. Employees often tell me that they would rather hear feedback (even negative performance feedback) than not to be told where they stand. It’s also important to show respect for all employees at all times. (This is especially key during performance reviews, disciplinary action and terminations.) This affects more than the employee in question; your whole staff is watching how their co-worker is treated.
3. Notice and acknowledge your employees’ good work. As the surveys tell us, people like to feel appreciated for their effort and results. Recognition efforts can be very simple; a “thank you” goes a long way.
Make an effort to celebrate success and good work, and be sure it’s visible.
4. Institute flexible policies. Develop family-friendly policies wherever possible. Given the personal demands most employees face, such as caring for young children or elderly parents, flexibility is greatly appreciated.
Flexible work schedule options that companies are implementing today include:
• Job sharing (allowing two employees to share the hours and responsibilities of one job).
• Flex time and place (varying work hours; considering occasional work from home when appropriate).
• Part-time and compressed work-week schedules.
• Time off for holiday shopping.
• Summer hours.
Reasons to recognize and reward
What are some opportunities you can use to recognize your employees? A 2003 survey by World at Work and the National Association for Employee Recognition identified occasions on which companies recognize and reward employees. (Totals add to more than 100% because survey participants listed multiple responses.)
• Length of service: 87%
• Above-and-beyond performance: 85%
• Sales results: 43%
• Suggestions/ideas: 36%
• Employee of the month: 29%
• Safety: 28%
• Attendance: 20%
In addition to these, your company may have its own unique reasons to reward excellence.
A call to action
Select one hardworking employee whom you would like to recognize, reward, motivate or retain. Create a list of three actions you could take to accomplish this. At a minimum, let the employee know how valuable he or she is to your organization and thank the person for a job well done.
Allison Pratt, a human resource professional with more than 25 years of experience, is principal of Pratt & Associates, which provides comprehensive human resources consulting and business coaching to companies in a wide range of industries (allisonjpratt@msn.com).