Money not only isn’t everything, it isn’t even the main thing when it comes to motivating employees, according to workplace consultancy Shepell-fgi Research Group.
Psychological engagement factors — how people are treated and how they view their managers — “have almost twice the impact on motivation and results than pay and benefits, meaning more money won’t move the productivity meter upwards,” the firm reports.
“Total employee engagement won’t happen 100 per cent of the time,” observes Rod Phillips, CEO of Shepell-fgi, a Canadian specialist in workplace health issues. “We all like some parts our job more than others. But when overall engagement is low and when your staff prefer to not come in to work or aren’t performing at their full capacity, it costs the organization money — up to an average cost of $1.8 million for a company of 1,000 employees.”
The firm found that key factors linked to a company’s bottom line include trust in senior management, being asked for input, and a clear say in decisions that affect people’s work.
“Given their importance, these indicators should be on every employer’s radar screens, but fewer than half of executives report their workplaces achieved healthy levels within these indicators,” says Karen Seward, Shepell-fgi’s senior vice-president of marketing.