Use of only material forms of motivation
Posted: Thu Jan 23, 2025 8:58 am
Some managers believe that only monetary incentives can motivate employees to work better. Of course, finances are important, but there are other effective motivators.
Over time, material rewards lose their significance, and the employee begins to strive for professional and career growth. He thinks about such bonuses as health insurance, sports activities belize mobile phone numbers database or educational programs. It is important to think in advance what the company can offer in this regard.
What to do:
Develop a comprehensive motivation model in the company, taking into account the basic needs of the staff. In addition to financial bonuses, include career growth programs, training, compensation for medical services or hobbies. Inform employees about the opportunities that the company offers so that they clearly understand where they can get support from the company.
Formation of a system of non-financial motivation without an effective model of material incentives
In some cases, managers take extreme approaches. According to the Russian School of Management, 26.9% of companies focus only on monetary motivation, while 8.3% rely solely on non-material methods. Both of these approaches do not demonstrate high efficiency.
Non-material motivation methods are effective only if the personnel are materially satisfied. Financial incentives are the foundation on which the non-material motivation system is built.
What to do:
Create a clear and fair system of calculating wages and bonuses. Do not link everything exclusively to KPI, as this is not always suitable for different positions. There are other forms of material incentives: a grade system, regular rate indexation, bonuses for seniority, etc.
Mistakes of the manager when implementing a motivation system
Source: shutterstock.com
Copying models from other companies
We have already noted that it is impossible to create a universal motivation system. What worked in one company will not necessarily be effective in another. Blindly copying successful cases of other organizations is not the best strategy.
What to do:
An effective motivation model should be developed based on specific tasks, taking into account the characteristics of the product, production, business processes, the employee's life cycle in the company and the strategic goals of the enterprise. Only a comprehensive approach will allow you to select effective tools that stimulate staff to work better and more effectively.
Over time, material rewards lose their significance, and the employee begins to strive for professional and career growth. He thinks about such bonuses as health insurance, sports activities belize mobile phone numbers database or educational programs. It is important to think in advance what the company can offer in this regard.
What to do:
Develop a comprehensive motivation model in the company, taking into account the basic needs of the staff. In addition to financial bonuses, include career growth programs, training, compensation for medical services or hobbies. Inform employees about the opportunities that the company offers so that they clearly understand where they can get support from the company.
Formation of a system of non-financial motivation without an effective model of material incentives
In some cases, managers take extreme approaches. According to the Russian School of Management, 26.9% of companies focus only on monetary motivation, while 8.3% rely solely on non-material methods. Both of these approaches do not demonstrate high efficiency.
Non-material motivation methods are effective only if the personnel are materially satisfied. Financial incentives are the foundation on which the non-material motivation system is built.
What to do:
Create a clear and fair system of calculating wages and bonuses. Do not link everything exclusively to KPI, as this is not always suitable for different positions. There are other forms of material incentives: a grade system, regular rate indexation, bonuses for seniority, etc.
Mistakes of the manager when implementing a motivation system
Source: shutterstock.com
Copying models from other companies
We have already noted that it is impossible to create a universal motivation system. What worked in one company will not necessarily be effective in another. Blindly copying successful cases of other organizations is not the best strategy.
What to do:
An effective motivation model should be developed based on specific tasks, taking into account the characteristics of the product, production, business processes, the employee's life cycle in the company and the strategic goals of the enterprise. Only a comprehensive approach will allow you to select effective tools that stimulate staff to work better and more effectively.