When you hire the right people and provide them with right salary, it increases employee motivation and the machine runs smoothly. We have been discussing various factors that affect the employee engagement including workplace culture, employee benefits, work-life balance and much more. But there is always a simpler way, the main reason, that has the highest impact on engagement and retention and that is how well employees are paid.
Despite current percentage of unemployed people, it is really hard for headhunters to find candidates with great skills. Even when they manage to hire them, it is harder to retain them. And even if it is not the deciding factor, pay matters.
Before raising the pay, employers should know who the top performers are, who are valuable to the company and then make arrangements for employee motivation. The incentives and perks should be a part of this arrangement and should be offered to employees from time to time to boost employee morale.
We carried out a survey, to know the key components that had a high impact on employee motivation and the results said that pay matters to 78% of employees and is the only driving factor for them. They also listed several other factors that they considered before switching to another job.
Here are some factors that are important for employee engagement and retention:
- 61% employees considered work flexibility as one of the major concerns
- 46% employees were driven by the desire to make a difference
- 37% employees were striving for challenging work
- 33% employees liked the ability to work from home
- 19% were keen about the academic reimbursement
- 16% wanted their own office to stick to a company
- 14% were selecting a company only if they were given a company car
Here is a list of perks that employees considered before taking or leaving a job:
- Half-day on Fridays – 41%
- On-site gym/fitness center – 23%
- Casual dress code – 19%
- Free lunch – 18%
- Massages – 15%
- Transportation facility – 12%
- Nap room – 11%
You might have heard – “If you pay peanuts, you’ll get monkeys.” – which seems to be true in most of the cases.