Why More Money Isn’t the Key to Employee Retention
What motivates employee loyalty to your company? Is it the opportunity for promotion? An awesome health insurance plan? A weak economy with an even weaker job market? Do you have to show them the money before they commit to daily tasks? Before you say ‘all of the above’, think again.
Money is not always the primary reason the employee chooses to leave. Based on employee surveys and research, money is not always the biggest reason why an employee stays with your company.
Money does play a role in employee retention but it is not the only tool that you have when recruiting top talent. For most mid-performing employees, compensation can be a hygiene factor of motivation. Where too little money can lead to high turnover rates, too much does not cover up a negative work environment.
Yes, employees care about how much they make to maintain a standard of living. However, there are other things that you can do to engage and motivate them.
Each year, Great Place to Work® releases findings based on employee experiences with the companies in which they work. Three common threads are found in companies that have exceptional environments: trust, pride and enjoyment.
Your employees need a livable wage and they also need to care about the culture. Everyone prefers to work in a positive environment where they are respected and supported in completing daily tasks. Treat your employees with respect and they will respond in-kind to coworkers and customers.
Typically, employees will take pride in their work and look for meaning in what they are hired to do. Provide that space through recognition awards and leadership development programs, for example. An inclusive work culture will receive better responses from employees who want to remain with your company.
I invite you to contact me so we can begin developing a strategic plan that keeps employees in your company longer.
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