PAY is one factor that shows up as both a source of satisfaction and a source of resentment among employees
Consider the scenario:
you want to attract the star talent to your company , so you pay him salary higher than the market rate .He comes and joins your organisation but the worth he brings to the organisation will very much be neutralised by the reduction in efficiencies of his team mates who compares their compensation with the new guy and gets frustrated as they are paid less than him . Now one may argue that money may not be the only motivator and good hr policies will help in retaining the employees and good performance appraisal system with clearly defined goals will make sure the employee is at desired productivity level.
But then no one can withold an employee from leaving the organisation
No matter how much you raise salaries, though, you won't generate motivation and job satisfaction, because job satisfaction is a function of the content of the job
People are dissatisfied with their pay when they feel it isn't commensurate with their efforts, is distributed inequitably,doesn't reflect the responsibilities of the job,or is out of touch with market realities.If you don't pay competitive wages,people will be unhappy and they will
On the other hand, if people feel that their pay reflects the quality of contribution they are making to their organization,and is equitable with other high-talent performers inside and outside the company,and recognizes the unique contributions that they make,then pay can be a powerful source of true motivation
what is the opportunity for real achievement and genuine accomplishment
Does my job allow me to do something that makes an actual difference?
Do i get recognized through nonmonetary means?
Do i have alot of say in how i do my job or am i totally constricted by standard operating procedures?
Can i learn and grow and develop on this job, or will i be tightening the same nut on the same bolt for the next 30 years?
Look at NGOs
If u cant satisfy people's pocketbooks, then satisfy their souls
Allow people freedom,discretion,and autonomy in doing the job
Increase the amount of challenge
keeping them engaged( this is most abused word and truly deserves a post on itself :P ) should not be of prime importance .let them be idle it doesn't matter
There might be jobs (coders in IT companies can very well connect) how well one try to be motivated there is no intrinsic fun in doing the repetitive job day in and day out . The responsibility as an effective leader is not to compensate the frustrated employee by offering him a pay raise . It might help in retaining the employee for the short term but in the long term the employee is sure to leave the organization . Rather the challenge should be in making the employees connect with the bigger picture of their actions (For ex: Soldiers in border patrol spends hours together manning and looking for intruders (which do not happen on a regular basis, but the major motivation in doing so is the feeling that they are making the country secure every single minute)
some thing on similar lines needs to be thought over for employees in organization and carefully integrate into the culture of the organization
PS: This article comes exactly a day before my final exam of Peformance management systems :P :P
