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Motivating Employees in Non-Monetary Ways

When it comes to retaining employees in tough economic times, pay raises may actually be overrated say findings of the 2008 Management Action Programs Inc. (MAP) Quarterly CEO Survey, conducted by Vantage Research. In fact, open communication, employee recognition and involving personnel in decision-making are what people value most in a company. That's why many CEOs will be improving these fundamental business practices, rather than just handing out raises over the next few months, the survey further reveals. "This latest MAP survey shows that the number-one business practice -- 'open communication between management and employees' -- was mentioned nearly twice as frequently as 'receiving raises,'" says Allan Hauptfeld, principal of Vantage Research & Consulting. “Clearly, a work environment where employees are recognized as part of the team is more valuable than simply receiving a paycheck." According to Lee Froschheiser, president and CEO of MAP , a veteran business-consulting firm, financial compensation is by all means great, but CEOs are now more interested in motivating their employees through alternative methods "For example, creating a workplace culture that recognizes employees for their professional contribution helps keep 'A' players from jumping ship. Personal growth is another huge motivator for staffers seeking more of a 'security blanket.' Providing a clear career path for your workers, including clearly defined steps for advancement, also pays big dividends in terms of retaining talented employees. Most of all, clearly communicating the company's vision and mission, as well as making employees feel they're playing an important role in the business' overall success are among these CEO's top employee-retention strategies," Froschheiser notes.