DOES SALARY INCREMENT MOTIVATE EMPLOYEES
DOES
SALARY INCREMENT MOTIVATE EMPLOYEES
In modern days Motivation plays major role in any work place. If employees are motivated, they will be more productive. Most of the companies using pay increase or paying Bonus to motivate their employees. Actually salary increments really motivate the employees?
There is significant evidence that “good salary” is the most important factor in motivating employees. But most of the time higher salary increment demotivates employees. The main reason is most of the time there are more hidden facts and costs associated with rewards. There is a natural tension between extrinsic and intrinsic motives, and that financial reward can ultimately depress or “crowd out” intrinsic goals.
According to Arnold Schwarzenegger: “Money doesn’t make you happy. I now have $50 million but I was just as happy when I had $48 million.”
If the company needs to really motivate their employees, they really need to think deeply and understand their needs. Even companies can provide satisfying salary increments employees may be still unwell to work with their full heart or leave the company. In some companies, employees still choose to resign even though they have a good salary, increments or bonuses. This is because they have no Job security in the company. Job security can be defined as the confidence that they can keep their jobs. People who have job security can perform seriously as a result of concern about finding a more secure employment.
Therefore, salary increment is not the important factor in motivating employees and there are non-financial factors that more important than salary increment. The working environment, appreciation, recognition, caring attitude from employer is more effect than salary increments
An effective reward system can motivate the employees and enhance their productivity (Fuhrman, 2006).
video 1:Motivation theories in compensation(You tube,2022)
References :
- Fuhrmann, T. (2006). Motivating Employees. Advances in Diary Technology, 93-101.
- Figure 1 : shutterstock.com
- video 1:Motivation theories in compensation(You tube,2022)
If a worker is satisfied with his pay, he is more likely to perform to his full potential. A person who earns a good salary is motivated to do a good job because he wants to please his boss in order to keep his job. you have nicely describe it in this article. Wish you all the best!
ReplyDeleteA topic that needs to be discussed in a recent organization. Especially in organizations in Sri Lanka. It can be seen as a good tactic that can be used to increase the growth of organizations. You have well explained how it works. All the best!
ReplyDeleteThank you
DeleteGood topic.A high-paid employee is motivated to do a good job because he wants to satisfy his boss in order to keep his job. His salary provides him with a sense of stability, allowing him to feel accomplished, and provides him with a high status rating, But as you mentioned above there are more than that to be know about to motivate
ReplyDeletean employee which he values.
Well done.
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ReplyDeleteAs explained above, higher remuneration is a major motivating factor for employees. It will improve employee morale and increase productivity levels. In addition to salaries, employees are also concerned about non-monetary benefits and recognition. Good article. All the Best Arjuna!
ReplyDeleteThe way you explained about
ReplyDeleteDoes Salary increment motivate employees, it's easy-to-understand and it's really impressive
Timely topic, in the modern world people not only work for basic survival but also for better tomorrow and personal growth / development. The pay hike is very important to retain staff, motive them and to increase the efficiency. The salary has to be align equally or more than the competition to slim the chances of employee turnover. Nicely done.
ReplyDelete