Why pay raises don’t equal performance increases
Your team is the most critical asset in your business. No matter how new or fancy your machines, computers or even robots are. Your team is the most vital ingredient to your business growth and survival.
As business owners, we can forget this or take them for granted. After excessive automation at Tesla car factory caused delays, even Elon Musk admitted ‘humans are underrated.’
Yes, excessive automation at Tesla was a mistake. To be precise, my mistake. Humans are underrated.
— Elon Musk (@elonmusk) April 13, 2018
As business owners, we are always looking for ways to improve the bottom line numbers of the business, and when we look at our team, we usually believe that to get the best out of them, we need to give them more money.
Money has a short-term boost only, a bit like a shot of coffee. You can’t drink coffee all day every day, if you did, not only would it stop giving you that energy boost, the effects would rather unpleasant.
Giving pay rises is the same, you can’t afford to do it too much!
So, what is the answer to getting the most out of your team?
In this article, the Maple Accounting team explain what employee recognition is, why it matters, and our favourite ways of implementing it into your business.
What does employee recognition mean?
Employee recognition is the business term for showing your employees that you appreciate their efforts. It’s a vague term that can range from anything between telling someone that they’ve done an excellent job too giving them a bonus as a reward for going above and beyond.
How does employee recognition help your business?
Employee recognition is directly linked to your teams’ job satisfaction. The more job satisfaction that your employees have, the more productive they become. In addition, they’re less likely to look for another job, and they show more interest in becoming fully involved in your business.
Recognising when your employees put in more effort than usual or when they achieve something important raises the morale of your entire team. Many business owners neglect their employees, and the result of this is higher staff turnover rates, demotivated workers, and lower productivity.
How to improve your employee recognition
Not only does it matter that you recognise your employees but thinking about how you recognise their efforts can go along way too. Here are our favourite ways to help increase the amount of employee recognition in your business:
Give genuine feedback
The best compliments are those that are true. If you are looking to improve your employee recognition, merely walking into your office and telling people they’re doing a good job won’t cut it. Look for employees who are consistently meeting their targets and thank them for it. Alternatively, you could find an employee who is proud to have achieved something in their career and congratulate them.
Personalise your rewards
Pay attention to what your employees want. If you have decided that you are going to reward a particular employee of their efforts, give them something that they actually want. Perhaps that employee would prefer an additional day of annual leave more than a cash bonus – the only way you can find out is by getting to know your employees better.
Give your employees room to grow.
If a member of the team has expressed an interest in widening their skillset, give them the opportunity to develop. This is another form of employee recognition. Instead of rewarding their effort, reward their desire to learn.
This can lead to having a more diverse workplace in terms of the different talents and abilities you can choose from when you have projects to complete.
Hold the same values throughout the chain of command
Consistency is key. If you, as the business owner, decide to improve the amount of employee recognition in your company but your managers don’t adopt their attitudes too, your workforce won’t see any benefit.
Inform your managerial staff and team leaders that you want to focus on recognising and appreciating your employees and tell them what to look out for. If you have more people looking out for staff members who are trying hard, you are less likely to accidentally miss someone out.
In conclusion, taking the time to show you value your team will reap far more benefits than just giving them a pay rise.
If you need more evidence of this, just look at how Gareth Southgate got his team to perform at the world cup in 2018.
We can help…
If you would like to talk about anything we covered in this article, get in touch with our team. We can also help you work out a budget that will allow you to provide incentives for your employees without endangering your cashflow.
Contact us today by emailing firstname.lastname@example.org or call 01332 207 336