money and recognition are important motivators for employees.
There are a number of job-related factors due to which employees are and can be motivated. This is the reason why efficient managers always think about the needs of the employees and then plan and provide the proper motivation strategies accordingly. This is exceedingly important as a workforce that is motivated may eventually profit the organization by contributing in a positive and powerful manner. Thus, it is really necessary to motivate the employees by both money and recognition as the absence of any of the two motivational factors may result in employee dissatisfaction.
Importance of Money and Recognition to Employees
According to Jack Welch, CEO of General Electric, "You have to get rewarded in the soul and the wallet" (as qtd. In Neff 2002). It simply means that companies must not consider it enough to pay ample money to their workers believing that they will do great work as a pay off. It is equally important that the employees are empowered by the companies. A combination of empowerment and proper incentives can boost employee performance to great levels. A successful organization is one where employees are motivated and their psychology is understood properly. It is one of the major characteristic of a dynamic company that it considers it a top priority to motivate its employees and let them be satisfied with their jobs. It is due to the fact that the bottom line is always improved by employees who are satisfied with the incentives and satisfaction provided to them at the work place. Such employees put their efforts in a more efficient way as they know their value to the success of the business/company (Neff 2002).
It must be the ultimate goal of every company to offer such an environment to their employees where they are offered incentive programs in the form of handsome salary packages and other financial benefits including bonus etc. People must be reimbursed generously for the quality work they do for their employers and the organization. However, along with the monetary awards, it is also necessary to recognize the honest and excellent accomplishments of people for their organization. Monetary benefits are, without a doubt, an exceptional motivational factor but in the long-term, they are not enough if an employee is not recognized for the work he does. If truth be told, a lot of tenured employees tend to leave their jobs if there is a lack of appreciation from the employers. For this reason, it turns out as an essential step for the companies to create a working environment where employees are not only paid well but their efforts for the company are also recognized (Neff 2002).
As far as money is concerned, the best approach is to evaluate the performance of employees in a timely manner. It is only then possible to pay the employees for their performance at the right time. Most of the salary systems are criticized for being inflexible in rewarding the employees differently according to their levels. However, it is exceedingly imperative for the employers to understand that in order to motivate employees positively, such salary systems are devised that offer equal reimbursement increases and of course or increases according to the performance levels of the employees. It is, therefore, the key of being a successful organization that employees are given timely feedback and then rewarded appropriately along with that feedback (Wiant 1999).
It won't be incorrect to state that money does matter. At the same time as the contemporary management trends focus on more progressive benefits for the workforce, it is equally critical to provide them with competitive payments. It constantly turns out as a great thing for companies if they pay their employees more salaries as compared to the others in the market. Stupendous achievements shall always be recognized by offering bonuses based on the performance of the employees and must range from impartial incentives, share in stocks and cash etc. This is because there is an undeviating connection between efficient reward programs and commercial prosperity and businesses that have made use of original "approach to compensation that are also flexible enough to respond to changing business conditions are found to have the highest retention rates and to perform better financially than others in their industries" ("Retaining Your Valued Employees" 1999). For that reason, salaries' reevaluation must be made a frequent practice as what companies pay to their employees may not seem competitive after a span of six months.
As compared to money, the concept of recognition is a non-financial motivator for the employees but it has a far better effect on the employee. However, it is equally important for the employers to mull over the fact that effective recognition is one when it is given on the right time and is true. There should be meaningful rewards and all those actions of the employee(s) must be recognized that the employers expect from everyone in the team. Recognition is considered extremely important as it directly affects the sentiments of the employee and motivates him/her to deliver more positively and sincerely. There are a number of ways by which employers can deliver effective recognition; verbal praise being the most common. Verbal recognition may be done both privately and publicly and both ways can prove to be really encouraging. Recognition reassures an employee that he/she fulfilled the expectations of the employer(s) and was successful in accomplishing something exceptional. This kind of reassurance boosts the confidence in employees and they start giving more attention to their jobs that eventually result in more productivity and profit for the organization (Kenneth 2002).
Another kind of recognition may be done via electronic means i.e. through sending appreciation emails to the worker. In today's contemporary world where Internet has eliminated the distances, gratitude is usually shown electronically. However, a note of appreciation that is in black and white is more meaningful to the employee as it shows that the employer spent some special time to thank the employee and wrote the message (Kenneth 2002).
A third kind of recognition that has tremendous outcomes is one where an employee "is given increased autonomy and authority to get a job done, whether it's the ability to spend or allocate resources, make decisions or manage others." When an employee is granted greater independence and power to say the last word, it simply reassures him/her that he/she is trusted by his boss. However, such rewards must be given only when the past achievements reveal the fact that the employee may be trusted and is dependable. It is not the right of an employee to be given autonomy by his/her employers. Instead, it is privilege that is offered to those hard workers who earn them rightfully by using their talents for the sake of the company. Everyone is in a dire need for money in order to live. However, when it comes to work, there is something much more than money and that is the honor and recognition one gets in lieu of his/her performance (Neslon 2003).
Recognition at workplace is all about signifying the efforts an employee put in accomplishing his/her work are recognized by the management in a fair manner. It demonstrates that the authorities acknowledge the contributions of the employees. Recognition makes a person appreciated. Thus, when recognition becomes a daily ritual in the working environment, it is indeed a win-win situation for everyone. Such kind of environment encourages people to nourish their men capacities, build their confidence and ad meaning to their work. Not only this, recognition plays a great role in the enhancement of an employee's sense of worth.
High-performance organizations are successful for a reason. They recognize and appreciate the significance of awarding and giving incentives to their employees for distinguishing, certifying and valuing…