I heard recently that a raise only makes a difference to an employee for the first 30 days. After that it just becomes his or her regular salary. It is no longer new and exciting.
So how do employers keep employees motivated and excited about growing in their job without tying progress solely to money?
A culture shift needs to take place. For a workplace to attract and retain good employees there must be a culture of trust. In study after study, employees prioritize the attributes of a good boss, and integrity and ethics are always at the top of the list. An ideal manager is fair and operates the business ethically. They are committed to doing the right thing even when it is difficult.
Instead of calculating your staff hierarchy according to their return on investment, make an investment in your people instead:
- Educate your employees
- Offer them opportunities to grow professionally and personally
- Allow them the chance to try something new
People want to be led and developed. Everybody will leave his job someday. Do not be fearful that personal growth will make people terminate sooner. Leadership and fear are bad partners.
From an HR perspective, this speaks directly to employee relations. If you are counseling or terminating an employee for poor performance or misconduct, be honest. Do not fire someone by saying you are eliminating the position when in actuality, the employee is just not good at the job. Truthfully and nicely, tell the employee why the decision was made. Believe me, this can be a life lesson for that individual, and the truth is always better even when it is difficult to say. As business owners and managers, we have an obligation to provide for our employees and nurture a culture of trust.