Advice: Use financial incentives to increase motivation and productivity of the people in your company.
Despite the predominant opinion that most employees respond positively only to financial enticements, you can greatly improve employee performance in your company when you diversify the types of incentives you use.
A payment that reflects the talents, experiences and expectations of employees is a necessary condition to attract quality resources in your team. I said necessary condition. I haven’t said sufficient! Good salaries and an attractive benefits package will help you hire quality people for your company and, to a certain extent, to keep them. But these incentives are not enough to retain valuable employees!
Entrepreneurs and managers assume too often, that what motivates themselves also motivates their employees. In reality, each person has his own idea of what a good bonus from the company means. And usually, the view from the top of the company is different from the one perceived by employees. That’s one of the reasons why some people are entrepreneurs, and others are employees.
But what expectations do employees have of their employers in the 21st century? Taking the example of innovative companies such as Google, that has built a five star employer reputation by offering their workforce excellent benefits, people have rising expectations. Some employees want more freedom and flexible working hours. Many appreciate when the company makes their life easier as parents. Others will prefer a certain management style based on teamwork and merit recognition.
Non-Financial Incentives for Increasing the Productivity of Your Team
Here is a list of 12 things you can do to raise the level of motivation for the people in your team. The list is inspired by the methods I apply in my business; many of the ideas I started testing after I visited Google headquarters in Mountain View, California.
1. Give your employees maximum freedom, let them plan their week how they think it is effective, let them explore their ideas about new products or simply try new ways of doing things
2. Allow for flexible working hours.
3. When delegating, take into account what type of tasks and activities each member of your team prefers, what are they best at?
4. If you have resources in your company, provide certain services to your employees in order to create more productive time. Allowing people to take time out some personal business like collecting their dry cleaning, picking up a package, or taking the children to school; all these will help them to be more focused on professional issues.
5. Recognize in public employees and the team’s performance(you and other managers). Make it a habit to praise an employee every day.
6. Make simple constant discussions with employees to show a natural interest in people.
From $1 million debt to $1 million revenues in less than a year.
Wanna learn how we did it?
Are you selling $1 million already?
Even better, reach $10 million with Tooliers tips & tactics
7. Say “thank you” and praise people.
8. Treat every one fairly and impartially.
9. Honor your promises.
10. Assign responsibilities and always be prepared to assist employees.
11. Support, provide training and guide your team to success.
12. Challenge your employees.
Once you have implemented these measures, you can establish a way of working that will help you to keep your employees and transform your company into a more attractive place for other quality employees.
What is essential for you as an entrepreneur and manager is to understand that your trick of offering a bonus or increasing the payment will not work for an employee who believes it is essential to enjoy a flexible work schedule. To determine what people really want I recommend you establish an open system of communication with the people in your team. You have to listen, to observe, to remember individual differences and take care to give people the benefits that really drives them.
But what happens if you don’t have resources to make a competitive financial offer for the employees you want? A non-financial incentives lesson is especially valuable in this case. For businesses that are just starting out, small companies in the startup stage, the impossibility of offering generous pay may be offset by a good mix of non-financial incentives such those included on our list. In addition, offering a percentage of the business for key employees may be an excellent way of motivating employees in the running of your company.
Did you know it costs three times the salary of an existing employee to replace the employee? Think of the time required to find and recruit a new employee and the training costs at the same level of productivity. This is why it’s so important to establish what really motivates our employees!
Have a great idea that worked for you ? Write it in the comments section below.