Is a Raise Enough for Motivation?

In the array of motivational tools, a raise is the most frequently mentioned. However, is it realistic to expect that its (independent) effect has a lasting impact?

Question:

At the beginning of the year, a decision was made by the director and senior management regarding some raises for certain employees. It seemed to me like a good move since people had been dissatisfied with their salaries for some time, especially since the workload had increased over the last two years. The decision was met with approval, and during the spring, a greater enthusiasm and motivation for work was felt in the company. However, it seems that things have now returned to the way they were: enthusiasm has waned, many are reluctant to take on responsibility despite higher positions, and people simply “do not bite.” So, as one of the managers, I wonder (and so should you!) what is the point of salary increases if things quickly revert to the old ways?

Answer:

The basic, material purpose is to give people the opportunity to increase or maintain their standard of living, right? I say maintain because, I believe you will agree, the cost of living systematically increases throughout the year whether we (or those who decide on this) want to admit it or not.

The psychological, motivational purpose of a raise lies in the fact that someone (management) has recognized the effort, engagement, and success of individuals and decided to reward them for good results. When we give “personal” raises (that is, not those based on a principle of everyone in the company receiving an increase of, for example, 5%), we are actually sending a message to the person: “I see you, I appreciate what you do, and this is my way of expressing gratitude.” When framed this way, it can be a powerful, motivating message. Hence, presumably, the enthusiasm you mention that was visible during the spring. Because, what did you do? You praised the employees, materially.

But even that, like most things in this world, eventually becomes “old news,” as you say. The car you were thinking about, dreaming of, choosing additional equipment for, and eagerly waiting for to arrive is, on the first day, a reason to get up early and head to work, paying attention to every bump in the road and speck of dust, and one day (after a month, two…six?) it becomes old news. And you no longer feel any excitement when you sit in it.

Simply put, over time the effect fades, and that is natural. This does not mean that people should not be given meaningful raises, but they are just one of the possible motivational tools that every company has at its disposal. Only adequate, timely, and fair use of a greater number of motivational tools contributes to longer-term satisfaction.

Some of the tools I mention are: asking employees for their opinions, ideas. Opening a dialogue for innovation and rewarding good solutions. Various types of benefits (from health check-ups, parking spaces to bonuses for good results). Providing additional education, coaching, training, and organizing team building and/or joint celebrations. Even a new chair or a newer computer can be very significant 🙂

And as the above would not be everything (nor sufficient), numerous studies prove that the working atmosphere in which collegial relationships and constructive dialogue prevail, clear division of responsibilities and expectations from superiors, and rules that are meaningful and transparent are extremely important for job satisfaction and motivation. In such an atmosphere, people are recognized, feel accepted, and valued.

Only the right combination of these three types of factors (the last of which is addressed in most of my answers through the Coach column) creates a quality prerequisite for employee motivation.

Just as a company is a kind of living organism, the methods of motivation are something that can and should be developed and adapted to maintain motivation. And when we systematically engage with it, we systematically postpone the return to “the old ways.”

Would you like to (anonymously) ask a question about your business challenge/dilemma/question, write to [email protected]

Ana-Marija Vidjak, educator and coach www.sto-ako-ipak.hr