Most companies thought increasing wages was the best way to motivate employees. Workers were given bonuses for achieving their objectives, salaries were increased to members of staff with exceptional performance, and over-achievers were granted additional stock options.
However, when the thorny global economy took a different direction a few years ago, many firms were pushed to cut down on financial incentive programs in order to stay economically viable.
So, what is the best way to motivate employees when a company has lost its previous grip to offer financial incentives or wishes to look beyond tranditional compensation and movitational sturctures? And, most importantly, how can employees motivate themselves in such a scenario.
According to McKinsey research, “workers motivation is wilting all over the world – self-esteem has dropped at nearly half of all organizations.” Which means it’s more crucial than ever for executives to seek ways to successfully retain and motivate top performing employees. This also means workers need to contemplate on better ways improve their morale and keep themselves motivated.
Interestingly, the McKinsey survey illustrates how three non-cash motivators are “even more valuable motivators compared to most highest-rated financial incentives”:
- Leadership attention (for example one-on-one conversations)
- Praise from direct managers
- An opportunity to direct projects or tasks
What this implies for employees: Unhappy employees who can’t leave their places of work should find creative ways to get motivated at work and stay happy. They should also begin incentives such as volunteering to manage new projects or mentor junior employees.
Employees should work one-on-one with top management and human resources to find cost effective ways develop their skills, hence remain even more valuable to the firm.
Today global economies are showing signs of recovery and we are optimistic that organizations will embark on reinstating financial rewards in the future. Nonetheless, it’s imperative for both parties (managers and employees) to reflect on creative, non-econ