Talk Money Once — Then Take It Off The Table
If you want passionate, productive employees, pay them what they ask for.
Employees spend a major chunk of their lives at work, and they should come to work every day because they love their job--not because they get paid.
After a cultural shift, heavily inspired by Daniel Pink's Drive, at Ciplex, we no longer use money to motivate. No bonuses, no reviews tied to raises. We take money off the table--from hiring to daily operations. The result? Enthusiastic, dedicated employees, who truly give a $%*# about Ciplex. In fact, my employees even get offers for higher-paying jobs and say no.
Here are steps every employer needs to take to make sure money isn't an employee's incentive to work hard:
1. Take money off the table from the beginning.
During the first interview, ask potential hires what they need in a salary. Don’t dictate what you have to offer. Don't negotiate or try to force an employee to take a lower salary than he or she needs. If you force someone to work for less, they’ll always be seeking out side gigs to make extra cash. You want 100 percent dedication.
2. Ask for salary requirements.
Ask potential hires: “'What would be the salary amount another company could offer that would make you consider taking an interview or leaving us?' Be aware of an employee's money motivations before committing.
3. Make sure current employees aren't motivated by the green.
How much someone should make shouldn't be driven by just an arbitrary number. It should be based on what a person needs to not think about money (pay their bills, provide for their family, save, live comfortably). To calculate this, try to break down your monthly bills. That means mortgage, rent, utilities, cell phone--even Netflix. Look at what you really need. Many think of salaries annually, but that’s arbitrary--as no one pays bills annually. Looking at expenses on a monthly basis is much more practical.
4. If you can't offer what an employee needs, part ways.
If an employee needs more money on a monthly basis than what you can afford to pay, know that they may not be the best fit. Chances are, the employee will always be looking for more opportunities for financial advancement instead of being dedicated to your business. It’s OK to part ways if someone needs more money than you can offer.
5. Never bring money back into the equation.
This means no giving bonuses or paying someone more for working extra hours. Use incentives like praise, lunches on the company or staff parties, no undue criticism or corrections. Here are more ways I motivate employees without money.
(Image courtesy 401(K)2013, Flickr)
Healthcare Administrative/Executive Assistant
12 年how very insightful. we are starting our company in the automotive industry. we will need to be hiring soon. so this was so timely. thank you so much for sharing, ilya. www.hotrodmath.com
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12 年We are a small company. I have employees who share your way of thinking and I've had people who would say this is rubbish! The latter usually leave if their demands are not satisfied. It depends upon personalities. The thing is, you cannot always understand the mentality from the interview. Objections and demands usually appear after the employee settles in and realizes his/her importance in the company. My view is that you cannot make a general rule. I wish it was the way you suggest Ilya. Things would be so much easier. We would be able to focus on the job at hand, without worrying about who might raise the subject of more money/commission and when.
Control Systems Design Specialist
12 年i wish this to be true. but reality is total opposite.
National Sales Manager at Flintec Singapore Pte Ltd
12 年Agreed!
Calvin Investment Group
12 年I'd like this to be true,,,,but I have had experience in start-up, mid size and large firms, and i'ts not a long term effective motivator. As a firm grows it is naive to believe that everyone shares the same values and will be motivated in the same way. I've had very well paid executives who needed to be reminded of their responsibility and administative assistants who gave it their all. Treat evryone the same and you are going to be treating most people wrong. Work balance, respect and fairness is generally as important as money.