With expansion firmly on the cards for UK businesses thanks to the economic upturn, bosses nationwide will be seeking ways to make the most of their workforce and encourage staff to do their best in order to gain repeat custom and drive growth. Yet whilst many believe that simply offering financial incentives will be enough to motivate employees, a new study has shown that other, more important factors may well have a far more positive impact upon production levels.
According to the Institute of Leadership and Management (ILM), only 13 per cent of employees claim that the promise of a pay rise would cause them to put more effort into their work. This means that, largely speaking, British businesses are wasting tens of billions of pounds on performance bonuses that could be better spent elsewhere.
While a good basic salary is still very much important to workers in these tough financial times, emotional factors tend to play a much greater role in driving motivation. Things like harmony amongst members of the team, how much control they have over their work and overall satisfaction rank far higher than bonuses – in fact, 59 per cent rank job enjoyment as one of their top three motivators.
Chief executive of the ILM, Charles Elvin, believes that this study could be a valuable tool for companies seeking to cut costs whilst improving staff motivation.
He says; “Understanding your employees and what makes them tick is vital in having a happy and motivated workforce.
“In the past year UK companies have collectively spent an astronomical amount on financial incentives for their staff, but this report is telling us there are far more effective, and cost effective, ways to motivate people.
“These include giving regular feedback, allowing people to have autonomy in a role, the opportunity to innovate and improved office environments.”
The survey of 1,091 managers and 1,018 employees also demonstrated the important role managers and supervisors can play in keeping employees happy. In fact, 22 per cent of respondents cited the treatment they received by their manager to be one of the most important factors in their overall satisfaction and corresponding effort.
Mr Elvin continues; “What this also shows us is that having good managers is paramount in business, as they are key staff motivators who can make a real difference to their teams.
“It sounds so simple, but something as basic as hearing ‘great work on that report’ can be a real boost to an employee’s confidence and deliver a sense of pride and satisfaction.”
Would you be more likely to work harder for a business in which you felt comfortable and valued rather than for one which used financial bonuses as motivators and rewards?
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