The answer to this is that money is only a very short-term motivator. Even if you get paid £1,000 extra per month, the chances are after three months you would lose most of the motivation gained from the pay rise.
The reason for this? It is not money, riches or wealth, that your employees crave, although a decent salary and benefits package always helps. It is Empowerment and the ability to be engaged with the Company’s Goals and Objectives that really engage your workforce.
6 Ways To Increase Employee Engagement
1. Salary Increases are helpful, but if they are not linked to performance, they do nothing for your future growth and profits other than draining them. Consider a bonus scheme, where the bonus is linked to measurable performance for each employee such as sales or cost savings.
2. Introducing Profit Share schemes can be extremely powerful for a small company that is actively growing. Giving away a proportion of your additional profits normally has a positive effect on employee morale. It is beneficial to the Company from a cashflow and ongoing cost base perspective as you are only paying out of additional profits earned.
3. Consider introducing a benefits package.It is not too costly to put in place schemes such as Death in Service, Life Assurance or Gym Membership.
4. Listen to your employees and take on board what they are trying to tell you. This is one of the most effective ways to build good morale and get the employees to feel that you have listened and reacted upon their suggestions. Above all, make sure that if you say you will do something you do follow through with the action. Failing to do this is the quickest way to destroy employee faith in Management.
5. Send your managers on a people management course. We all tend to throw our teams into areas where they are not skilled and have not been trained. Would you give an employee the keys to a forklift or a Company System with no training? An untrained people manager can be almost as destructive to a small company.
6. Consider whether your current workforce has enough potential leaders or managers to enhance and grow your business further. If it doesn’t, consider a reassessment of training or capabilities to align your workforce fully with your Company’s Goals and Objectives.
If you would like to talk to us about this article, please call Jon or Heidi on 01903 754107 to see how HR Smart could help you engage your employees. You can also e-mail us on email@example.com or, visit www.hrsmartuk.com.