Enough salary and bonus call motivation

Typically, managers think that the motivation of employees necessary to regularly raise salaries and to pay a premium. And if there are incentives in the form of KPI and purposes, an additional general can do nothing. But such a system does not really work, and without proper management does irreparable harm to the company.

Why money does not work?

Let's start from the beginning. Where did the idea was born of money as a means of motivation? The answer is simple: the poor of the past of our parents. Lack of money has created a big problem in the Soviet human life and severely limited his opportunities. When the Soviet Union collapsed, all generally deteriorated. People did not have enough money even for food, so they were ready to go to any lengths to somehow improve their position: going to trade on the market, We worked on two shifts instead of one night reading books and doing coursework to get a second degree in the profession, which is now grew popular.

Money here was a powerful stimulus move forward. It is an incentive, not motivation. This is a good explanation of the theory of Maslow's hierarchy or Herzberg. Both talk about the following: the lack of money creates dissatisfaction which man seeks to satisfy.

This is like a bad tooth: as long as it hurts, there is great incentive to take away the pain. But as soon as the pain goes away, further interest disappears completely treated.

The same thing happens with wages: as soon as it reaches a certain level of comfort disappears dissatisfaction and a further increase in wages does not create an incentive.

According to my approximate calculations, this occurs at a salary of $ 500, if the person does not rent an apartment and has no regular payments (for Moscow - 1000 dollars). For a family man, this amount is approximately equal to 1000 dollars (for Moscow - 1500 dollars).

It is worth to mention that mortgage or other obligations allow the person to return the incentive, as the mortgage is lower wages. That is why many companies are willing to give all sorts of loans to employees or loans.

Why do companies continue to raise wages and to give bonuses?

In fact, everything is very simple: they do not know other ways to manage employees. In addition, in certain cases, as described above (loans or low wages), it really gives the result. Though not the best possible.

And how the increase of salaries to people?

Often without having a real impact on staff motivation, high wages do provide a different effect for the company they keep people from leaving. Ie wages actually performs only one function: makes a person to return to work. The higher the salary, the more unloved work ready to return people. Why? Because to find another job with the same wage is already becoming difficult, and reduce the usual level of life, no one wants. So people will quickly burn out and sit in the golden handcuffs.

So what increases the motivation of the people?

There are several factors that actually increase people's willingness to work better, and all of them lie outside the plane of money. These factors have been identified in a large study Gallup, here they are in my free interpretation:

• The presence of clear goals. It seems trivial, and like Peter Drucker commanded all the leaders to put their employees of SMART goals. But, in my experience, only about 20-30% of employees have clear annual targets.
• Understanding the significance of their work. Saint-Exupery said that we should not force people to cut down trees, cut logs, haul boards, cobble together and glue them together with each other to build a ship. It is better to teach them to love the sea, and they still do.
• The availability of resources for the job. Imagine the woodcutter who found a job and a couple of days waiting for their saws. He brought a saw, but it is stupid. He is looking for long workshop for sharpening saws, but eventually forced yourself to sharpen the saw. Arriving at last to the tree, he discovers that saw the wrong size and generally designed to operate two people.
• Having friends at work. Lowest morality in communities with high turnover: people do not have time to work together, not like to make friends. But the strongest teams - the ones where the staff is more than just colleagues.

• Be in place. Each person has their own talent, and is most effective where his talents involved. Why are we regularly read stories of geniuses who were expelled from schools, institutes and from work? These places just did not use their talents.
• The opportunity to grow both professionally and personally. According to the theory of happiness, one of the most important factors to human happiness is a sense of their progress.
• Recognition of achievements. You know, why millions of people play computer games? It's very simple: the game are able to recognize the achievements. Ratings points, pumping characters or cars, badges, placards of victory after the battle, and other signs of achievements make people sit all night at the screen. By the way, I was born and gamification in business. Moreover, premiums and bonuses, in the absence of other things, serve as recognition of achievements. And here the man is not so much important purchasing power of the award, as the fact of gratitude expression.

How, then, be with the money?

The question arises: what is it, you can pay the money below the average for the market, not to give the award, and just follow the advice of Gallup? Not certainly in that way. And it is due to the fact that the alternative to high salaries and bonuses requires a quality system HR, time and ingenuity, not all of it can be realized.

Here is a simple example. Imagine yourself in the role of a student chooses to work. Before it offers from three companies:

• RichCompany Invite students to wages in 1000 dollars, while the average for the market - $ 500. In this company want to get all the students.
• SmartCompany It invites students to wage $ 700 + insurance + mobile payment + car + extra 10 days off + free meal + payment gym + English training. The student felt that if he had paid for the insurance, car, food, and other benefits, they would have cost him $ 500 a month. Therefore, the total package is estimated at $ 1 200, although we know that thanks to the discounts the company spends on its entire package of $ 900.
• EffectiveCompany It offers students a salary of $ 500 + English tuition and insurance. Of benefits a little, the student evaluates the package at $ 700, but there is one thing. The company promises a unique atmosphere, where work is very encouraged by their work employees, the system of career development and training, where exactly a year later the student will receive already $ 1 000, and two - guaranteed 2000 dollars, and this is confirmed by real-world examples of familiar student. In addition, here hard to get to the non-initial position, as the company covers 50-70% of vacancies internal candidates.

The student chooses a third company: it votes for their future. The third company is spending on the student package for only $ 600, a savings of investing in products and people development.

It is the construction of a third company requires strength, desire, ability, so it is always easier to go on the scenario of the first company.

And where do you work?

I am a 95-percent certainty I can say that you are working in the second or the first company. With approximately 50 percent certainty I can say that in the first. And if after the first, then a 80 percent chance of salary there is not so high. That is, companies are coming under the first scenario, the benefit of a lot of the market, and the only reason they can still hire people, but their dashing bypass the second and third.

By the way, the third company - this is a different kind of start-ups and private enterprise, when you are your own investor and employee hired as director.

conclusions

If you are a manager - Focus on the factors affecting the real motivation. If you're at - look for the company of the third type, and you forget what zapping depression and stress.