Motivating Employees

7. Pay As a Demotivator

Pay can also be an effective way of undermining motivation in your business.

Be aware that every pay packet sends a message - and employees are sensitive to its nuances.

7.1 If you pay less than the competition, you can expect to have demotivated employees.

7.2 If you give rises only when people threaten to quit, you are rewarding disloyalty.

7.3 If you pay higher rates to attract new employees, current employees will resent it.

7.4 If you use year-end profit as a target for bonuses, employees will not see a direct link between their efforts and their bonuses.

• The delay is too long, people know the profit figure may be altered for tax reasons and only a few employees will believe their efforts can influence the result.