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Ryan Paugh graduated from Penn State in 2006 with a Bachelor's Degree in Journalism and a minor in Business. After working in corporate communications, freelance writing and reporting, he co-founded 
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New here? Employee Evolution is a blog written by Ryan Healy. Ryan is a Co-Founder of Brazen Careerist, the webs #1 social network for young professionals. Ryan speaks with organizations on best practices for recruiting and retaining Generation Y and how to effectively use social media to reach your target market. To contact Ryan, please visit our contact page.
After a weekend of impulse-driven expenses, Monday arrives in its predictable fashion. I should be worried about the lack of money in my wallet, but that’s the last thing on my mind.
Money doesn’t motivate me to go to work. There’s more to it than that.
According to Beverly Smallwood, a licensed psychologist and management consultant, money is not a motivator. A great company does more than just pay well.
Make my life easier
I’m stunned by the lack of on-site services offered at top-tier companies. Maybe I’ve been spoiled in my corporate positions, but I can’t imagine why more large corporations don’t invest in services like fitness centers, dry-cleaners and on-site banking for their employees. Less off-site activity means more on-site productivity, right?
I loved working in an environment that allowed me to take a time-out at the gym. It plays right into the work/life equilibrium. It’s not about the traditional notion of detaching work from play. It’s just nice to experience a little bit of everything during my day. And I’m more productive for it.
Make it MY project
It’s no secret that Gen-Y has a voice that demands to be heard. We have opinions, so take them seriously. Especially when it involves something you trusted us to handle.
When you ask someone to put their heart and soul into a project, it gets personal. Give your employees a sense of ownership and you’ll see a better result.
Make it Fun
Despite popular belief, work and play are not polar opposites. At my last company, we had monthly staff meetings of the non-traditional form. Sure, my favorites were the happy hour excursions, but the daytime outings were a lot of fun too. Bottom line – good managers recognize the value in making these get-togethers happen.
“In a positive workplace, laughter often occurs spontaneously between co-workers,” says Smallwood. “Studies show that laughter and fun in the workplaces enhance creativity, increase productivity, build teamwork, make employees mentally and physically healthier, and relieve stress.”
I can’t think of a better way to determine whether or not your office is fun. If your employees can laugh in the midst of chaos, you’ve established a fun environment worth working for.
Make it Meaningful
One of my best friends works in sales for a medical supply company. About once a quarter he and his colleagues make a trip to a group therapy session where they meet with the patients that benefit from their products. It’s a long drive, but when he gets there, it’s worth it.
“It’s hard to find meaning in the daily grind,” he says, “but when you meet the people you’re ultimately helping, you know what you’re doing matters.”
Big corporations are tough. It’s easy to distinguish yourself as nothing more than a cog when there’s no tangibility to the end results. Put your employees in touch with that result and they’ll find more meaning in their work.
Appreciate What I Do
I’m confident in my abilities, but that doesn’t mean I don’t like to hear how great I’m doing. Encouraging doesn’t have to mean coddling. In fact, I think people who define it as such, probably need a few “pats on the back” themselves.
It’s hard to defend the value of praise when Gen-Y is considered by some experts to be overdosed. Still, psychological studies suggest that behaviors that get noticed tend to be repeated over time.
“Over time, the feeling that your company appreciates your efforts results in both your best efforts and your loyalty,” says Smallwood. “To bring out the best in your team members, expect the best, look for the best, and celebrate the best.”
Quiz any corporate bigwig on their technique to retaining top talent. Their answer almost certainly boils down to one color – green.
But luring employees with a big salary is the easy way out. If you want to create a great company, one that employees brag about, offer more than a hefty paycheck.
Leave your thoughts here. (14 responses)
- 1 Pingback on Oct 4th, 2007 at 5:41 am
- 2 Pingback on Oct 4th, 2007 at 6:00 am
- 3 Pingback on Oct 4th, 2007 at 7:24 am
- 4 Pingback on Oct 8th, 2007 at 7:44 am
I agree completely that big salaries are a way out, but I disagree completely that money is not a motivator. I don’t think I’m alone in this, but I am absolutely motivated by green. Is it the only motivator? Absolutely not, but it’s definitely a motivator, and a large one at that.
Put it this way, I don’t work any overtime…well very rarely. The work is there, but I’m not going to do it unless absolutely critical, and my standards are pretty high for this. However, if I were paid, I would. The work is there, but I’m not receiving ample motivation currently. The fact that I would, and many others would in similar situations, is clear enough that money motivates. And there’s nothing inherently wrong with that.
But the high salary thing is definitely the easy way out, it’ll keep someone around for a year or so, but I think that’s the limit, at least personally. At that point the areas that lack start to tip the scale, and then it’s a matter of how long the money can hold you over. The gym thing is one of my biggest priorities. I work downtown Chicago, and the fact that in my huge building there is not at the very minimum a locker room is mind blowing. If I could take off for an hour and go for a run, I’d be much more productive, and truthfully it’d extend months onto my stay here. I’m not even asking for an entire gym…just a locker room and shower! (Supposedly a liability the company is unwilling to have “What if someone slipped in the shower?!? is the answer I’ve received over and over after pursuing this for a few months…)
Hi Nathan:
Thanks for commenting.
Isn’t it odd that everything companies DON’T want to do is somehow a liability? Weird, right?
As for the money issue I definitely see your side of the argument. I think Smallwood is thinking a little narrowly if she thinks money is not a motivator at all. It motivates me to some extent. And of course it does! How else am I going to pay the bills?
You might consider staying late without overtime if your company gave more ownership to your product. Obviously I don’t know your situation, but I’d consider staying late without pay if I had a strong connection to my work.
Just a consideration.
Thanks again.
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-the EE Team
Regarding the point “Appreciate what I do” remember this: The management should actually understand what their employees do, and be prepared to offer *specific* praise.
“Thanks for all your hard work” doesn’t really cut it. Are they just saying that? Or are they noticing all the hours you are putting in? When did they notice it? That late night email you sent? Or do they just have a vague impression that you seem to be busy?
And what if you really aren’t working that hard? Boy, that’s a morale killer! The boss thinks you are doing a great job and here you are only coasting. Either he has no idea what you do, or doesn’t think much of your abilities.
So be sure to praise your employees for specific accomplishments, or else they really won’t feel appreciated.
The issue of money being a key motivator in the retention of employee’s really varies based upon the individual. I have a coworker who fits perfectly into Smallwood’s theory of money not being a motivator at all. He has commuted one a half hours to work everyday for the past year, and will be continuing to do so for another year or so (until his wife finishes school). Employees of his caliber are extremely hard to find; he can easily be considered an expert in his field. He could work for a company 10 minutes down the road with a 20% pay increase, but he chooses not to.
@ Scott M: You’re right. Smallwood actually talks about this type of appreciation. While she admits that it’s better than nothing she says that it stops short of genuinely helpful appreciation.
I agree.
@ Bubba: Your friend sounds like a passionate guy. I’m sure money motivates him to some point considering his wife is in school and is most likely the sole provider, but I definitely salute him for sticking to what he loves even though he is in that situation.
Thanks for the comments.
When did they notice it? That late night email you sent? Or do they just have a vague impression that you seem to be busy?
I had a perfect example this week, and contrary to what I said above, I’ve been working a ton of overtime the last week or so. (Major bank merger you may be aware of, department short handed, etc) My boss has been copied pretty much daily on numerous emails that I’ve been sending out 9-10pm. I’m not even looking for a “wow thanks” out of the blue, but yesterday when he asked if I could handle another project for him hinting that I had more than enough time, I was a little taken aback. I didn’t want to throw in his face, so I just told him he’d know why I couldn’t after I turned in my overtime report next week. The fact that he didn’t even have a clue was surprising, and I expect better from my manager, and believe I’ve shown better in my chances to lead. Just a perfect example of this sort of situation…
I think my earlier comment was lost, but basically I’ve found that I am willing to take a pay cut if I am compensated with great benefits beyond medical, like working out at the gym, dry cleaning, and shoe repair.
Another comment someone made was that there is a positive correlation between companies offering good pay and good benefits. More companies should get the hint that offering competitive pay with extra benefits will be lower cost in the long-term because healthy employees are happy employees and are more willing to stay, reducing the cost of turnover too.
Money makes a difference, but it’s not everything. Unless it’s just a short-term job, a high paying job will probably be more stressful and unrewarding in the longer term if all they think you care about is the money.
Scott M, Decide what you want. If your boss says “thanks for the hard work”, that’s not enough for you. The operative word is “thanks” and how’s it’s said. Not everyone knows exactly how to say “thanks” the way you expect it. Your expectations unfair. For example, you get a birthday card from a friend that just says “Happy Birthday”. Do you get mad because the card isn’t more personal or do you think, my friend remembered my birthday? If you are getting angry about an inadequate “thank you” you need to examine whether you out of line.
The money as a motivator topic is an interesting one. I think that Nathan has an interesting take on it, that if you’ve got a good salary, that might keep you in a job for a year, but past that initial period, you need something a little more substantial.
This makes me think back to my Organizational Behaviour course in university, when we were speaking of ways to motivate employees. The prof at the time was making much the same case, that salary isn’t a motivator, but more of a base requirement, as (in most employment cases) people aren’t going to work for free. Thus it was more of a need that had to be fulfilled, not a motivator. The other things in this article, such as flexible work schedules, specific praise, and engagement with one’s job, those are true motivators.
All in all, great post!