Recognise This! – Recent Compensation Cafe articles point to research showing better ways to influence performance and productivity.

Annual Bonus Ranks Last as Motivator for Employees

A recent study out of the UK found that, though UK organisations tend to give the most annual performance bonuses, yet  output per hour and per employee dropped well below the G7 average. Key statistics from the survey show the three most effective motivators to high performance identified by employees were:

  1. How much the employee enjoyed their role (59%)
  2. Basic salary (including pension) (49%)
  3. Quality of the relationship with their team and colleagues (42%)

What was one of the lowest ranking motivator of performance? Additional financial incentives such as performance bonuses – selected by only 13% of respondents as a top motivator.

Read the full post on Compensation Cafe for more details, including this highlight:

“When asked for one thing that would motivate them to do more, 31% of respondents suggested better treatment by their employer, including more praise and a sense of being valued, would be the most motivational thing their organisation could do.

“Recognition, non-financial reward and support/ feedback are both highly motivating and increasingly desired by employees. Managers who are able to understand and utilise these tools effectively will be able to get the best out of their workforce and produce a happier, more productive environment.”

Wage Cuts Reduce Productivity, but Wage Increases Don’t Necessarily Increase It

In another study, research into retail showed that reducing employee pay in tough times actually decreased profitability. I would argue this is true in every industry. Understaffing leads to overstressed, dissatisfied and ultimately disengaged employees. Regardless of industry, every employee is engaged in generating revenue through their role in the company. The “customer” may vary, but the relationship between the attitude with which a service is rendered and the end result is directly proportional.

More research details and supporting points are available in the full post.

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