How sustainable is motivation in a low or zero pay rise environment?

Danny Clenaghan, Managing Director at Argos for Business, part of Home Retail Group, considers how sustainable motivation is in a low or zero pay rise working environment.

Companies can drive productivity and returns by focusing internally on effective employee motivation. An engaged and driven workforce is more efficient, providing a company with a solid platform to make it more successful. However, in the current economic climate, employers are not always able to offer their staff a pay rise or monetary bonus, even if they feel they deserve it. As such, some managers question how they can ensure staff feel valued and engaged in the long-term. 

Earlier this year, Argos for Business conducted a nationwide piece of research, which delved into the country’s motivation levels. 43per cent identified ‘feeling valued’ by a boss as the top motivational factor at work. In comparison, fewer than 24per cent highlighted pay as a factor keeping them in their current role, and only three and a half per cent placed importance on an annual bonus.

Long-term reward programmes are essential in helping businesses create a culture of ‘valued’ employees, as rewarding and recognising good work helps staff to feel more appreciated. Incentives encourage employees to improve and maintain performance, which in turn impacts positively on a business’ bottom line. Recognition forms the basis of a long-term motivational strategy, encouraging employee enthusiasm, and can impact positively on staff wellbeing and improved retention.

Following the in-depth research into the country’s motivation levels, Argos for Business launched a campaign in January, ‘Employee Motivation Day’, to encourage businesses to focus on motivation and recognise the benefits that come with it. Argos for Business worked alongside motivational speaker Adrian Webster to launch the day, who advised that employers should never overlook the importance of little things, such as saying thank you. This may seem like a small gesture, but it can create a long-lasting impact. More personal touches can go a long way too. Acknowledging employees by offering rewards such as a gift card or leaving early on a Friday are simple, but hugely effective in terms of sustaining motivation levels.

Recent years have also seen a shift in focus of the types of monetary rewards given with gift cards receiving greater favour. And their growing popularity is evident in the industry’s worth, which currently stands at around £5bn per year (source: UKGVA). Gift cards have long proved an effective tool for motivating staff, while offering the flexibility and versatility necessary to keep employees engaged within their roles in the long-term. Employees have the freedom to choose the reward that’s most meaningful to them individually.

The culture of teamwork within the workplace also seems to play an important role. Employees’ positive attitudes towards teammates are linked to enthusiasm with 40per cent of people saying they stay in their current job thanks to a solid relationship with colleagues. Companies that are only able to offer low or zero pay rises should consider teambuilding exercises and regular social events as one way of sustaining motivation. Without the distraction of office life, staff members can get to know each other on a personal level, which in turn creates a positive dynamic within the team.

The findings of our recent survey reveal the real importance of motivation in the workplace and suggest that employers should work hard to introduce motivational techniques as an everyday business practice. Furthermore, it is evident that motivation can be very sustainable, even in an environment that cannot offer pay rises. Incentives and rewards are effective and need not cost the earth, or indeed anything at all. Simply feeling valued, or thanked for a job well done has proven to resonate with British workers, leaving a positive and affirming effect on employees and the businesses they work for. Businesses that successfully motivate, engage and retain staff will also reap the performance benefits that come with a driven, hardworking and experienced workforce.

For more information, please visit www.argosforbusiness.co.uk

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