Employees can really only thrive in a great culture. Your team needs to work for a company where they are appreciated. It’s really all about the perks. False, false and false. Employees have needs, wants and aspirations for their career. While these are all important company attributes to consider, they aren’t the only things employees pay attention to when they are on the job search (regardless of if they are already employed). They do care about their salary. They do care about the benefits. They do care about hitting each monetary rung in the corporate ladder, no matter what the most recent blogs might tell you.
Money may not be everything, but it does matter, and here’s why:
Employees Will Quit
While 37% of employees did say the type of work they do is most important to them in a recent Workplace Trends study, 31% said the money they make is most important to them. Employers can give their staff great projects to work on, but at the end of the day, there’s still a chance that employees will leave the company for their talent competitors simply for a higher paycheck.
They might have a bad boss, boring work, or even difficult-to-work-with coworkers, but these are not the sole drivers of searching for a new position. These reasons do instigate the initial thought and possibly even the newfound job search, but they are the decision makers to finding a new position. Crystal Spraggins (@crystalmusings), Workplace Consultant, said:
“No matter how much an employee wants a new job, he or she probably won’t accept another offer until the money is right. And that makes compensation a significant factor in the decision-making process nearly always, regardless of the official survey results.”
Your Team May Underperform
Different people are driven by different perks. For those that are driven by the chance at a raise or this year’s highest bonus, it’s money. The employees who are motivated by time spent at their vacation home, time off is the motivation. Without these incentives, employees may wane in performance or productivity. Laura Stack (@laurastack), Founder of The Productivity Pro, Inc., said:
“What motivates your team members to perform? …That takes time (which may be why so managers ever bother to put such an initiative into action. But if you do, you’ll jump ahead of 90 percent of your colleagues and competitors. You owe it to yourself to take the time to learn your team members well enough to dangle the right carrots when tempting them toward greater productivity… You’re not creating the motivation – you’re cultivating what already exists.”
No, not all employees are not motivated by money, but some are. Talk about their expectations during performance appraisals and even during the hiring process. Tell your employees the expectations from a managerial perspective as well (how they will need to perform and what kind of results they will need to drive) in order to receive their monetary expectations.
Salary Can Make or Break Long-Term Employees
An under average salary might not be a big deal to the employees who love what they do and feel like they are growing professionally. To maintain a competitive employer brand, however, it takes more than just the weekly employee lunch; salary can play a huge role in the employer brand as well as employee longevity. Patrick Ball (@_patrickball), Associate Editor at Care.com, said:
“Long-term employees can feel stuck in a position at a company. Make it clear to your employees how you can help them advance in their careers, or you run the risk of losing them. ‘At some point, the employee has to feel the manager is going to help them progress in their career.’”
A raise can help clarify an employee’s strength in their role and their organizations. While there are other important attributes to employee engagement and satisfaction at work, the perks don’t always cut it when there’s a suboptimal salary. Money might not be the driving force to finding a new role, but it can very easily tip the scales. Understand where your employees want to stand financially with the company, or you run the very real risk of losing them to your talent competitors.