Step Away from the Cash

As we all know the economy is in dire straits right now.  Everyone is looking for a way to make some extra cash and people are feeling handcuffed to their homes because they can't pay for gas to go anywhere! ($3.81 average today. You know it will go up this weekend since it's a holiday and all!) That being said, as a business you may consider giving your employees bonuses or monetary incentives to motivate behaviors.  I'm here to tell you why that is a terrible idea from a business perspective.

Studies have shown that giving cash to employees in addition to their base pay or commission is an ineffective way to motivate.  Ultimately, the employee lumps it in with the rest of their money, pays a bill or goes to the grocery with it and has nothing to show for it. They are not reminded much past getting the money in their hand of what they did to get that reward.

If employees are rewarded with merchandise, say some luggage, or a set of knives, or in some sweet circumstances a car (yes, please), then they will forever be reminded when they use these items or see these items of how they did awesome in a sales contest, or lost the most weight in the company competition, or how they went 1 month, 2 months, etc. without an injury on the job. When they know why they got it before, those behaviors and motivation will be instilled for them much longer, having a stronger effect on your business practices.

There is also the fact of being able to show your peers your trophy. When people get bonuses they don't typically walk around the office holding up their check or showing the envelope of cash. Most people would see that as tacky in a lot of situations. However, it is much less of a faux pas to walk around the office showing off your new iPad or tell people about the awesome camping gear you won and are going to use this weekend.  This not only encourages the person who received it to keep earning that item with strong work ethic and good behaviors because they see that reward continuously, but it also encourages the other employees to say "hey I want what he's got".

Be sure to consider what's best for the employee and for the business when discussing recognition and rewards. Get them something they may not normally treat themselves to, and treat your business to longer lasting motivation in your employees! It will go a long way.

Hey Man Did You Get an Award?- Recognition Can Go A Long Way

Ok, that's dramatic, but Michael Scott may be on to something... 

Recently I have come across an article discussing a study by the American Psychological Association conducted by Harris Interactive between January 31 and February 8, 2011. The survey found some quite interesting results regarding the overall morale and attitude of employees across the country in our current economic state. 

Stagnant job growth and lack of salary raises are factors in the poor attitude of workers, but employees also cited heavy workload (43 percent), unrealistic job expectations (40 percent) and long hours (39 percent) as significant sources of stress. "Additionally, less than half of employees (43 percent) said they receive adequate non-monetary rewards and recognition for their contributions at work and only 57 percent reported being satisfied with their employer's work-life practices. Just 52 percent of employees said they feel valued on the job, only two thirds reported being motivated to do their best at work and almost a third (32 percent) indicated that they intend to seek employment elsewhere within the next year."

Think about the last statistic. One-third of your current employees may have the intention of seeking employment elsewhere within the next year. Is that something your business can handle? With expectations of the economy bouncing back soon, the last thing an organization needs is for their employeess to bounce at the first sign of sunshine because they have been over-stressed and undervalued during these tough times. Employees are the center of your business. They are the ones who have most of the contact with your clients and customers, and to keep your employees happy is a great step in the direction of keeping your business partners happy.  When the economy bounces back make sure you will be able to keep those employees around that have done a great job. Show them how important they are to you now by recognizing their achievements! By taking these steps you will achieve the loyalty of those employees that have stuck around this long, and you may be surprised how far a little recognition can go.