This memorable line from Jerry McGuire is often used as a refrain to “seal the deal.” In every business transaction and employment relationship it always comes down to the money… or does it? The money is important to every business transaction. It is the basis on which most business relationships are established. For businesses it almost always comes down to the money. But is this always true of employees? Do people only go to work and stay for just the highest salary?
Most research indicates that salary is not the top motivator of employees. In fact, it consistently ranks lower than several other factors. If this is true, then why do employees seem to emphasize salary so often? It is because in most organizations salary is the only means of recognition given to employees.
Recently we conducted a poll on our website. Our site has a large audience of people actively seeking new positions in health care. We asked visitors the following question…
Which of the following is most important to you when evaluating a new job?
The possible answers were Challenge of job, Location, Company Stability, Advancement Opportunity, and Salary. Only 27% of those responding selected Salary as the most important factor when evaluating a new job. Yet for many organizations salary remains the most significant retention and motivational tool in use. Unfortunately this strategy is flawed. It does not address the more significant issues that attract, or repel, the best people.
Employees consistently say they want a “fair salary” and they rank other job factors higher. Employees who will only consider “top dollar” are essentially mercenaries and will yield little long-term impact on a business. They could be useful for short-term, high growth needs, but this attitude is actually detrimental to developing a company culture of sustained growth, low turnover, and high employee productivity and satisfaction. Today employees want to do work that is meaningful and they want to be compensated fairly. And while the evidence of this is very recognizable, the multi-generational aspect of our modern workforce makes this very hard to implement.
Motivating employees today is more complex than ever before. This is one impact of the unprecedented atmosphere of four generations working together – each with its own unique definition of meaningful work. Boomers need one set of values out of work, Millennials another and the Gen X’s and Veterans need yet another set of meaningful principles. This is a dangerous situation since most business leaders don’t understand how to manage a multi-generational workforce. It requires a new approach and a new strategy to employee motivation, a strategy in which salary will play an even smaller role.
Businesses and organizations need to re-think salary as their most significant attraction and retention tool. There is no question that income will remain very important to employees. Fair wages will always be a key driver. Businesses must examine their search, selection, and retention strategies and process. They must align and integrate them with the needs of each generation. Those businesses who continue to use pay as their most significant motivating force will soon find they are paying too much for too many of the wrong kinds of employees.
Richard Yadon, CPC, CERS, is the President and CEO of Health Career Professionals, LLC, a health care executive search, selection, and retention firm. To implement any of these strategies, please contact Richard at 866.371.0687 x.110.
Feedback, feedback, feedback – do yourself a favor and tell your people how they are doing and tell them often.
