Many times what we put down on paper is very different than what we actually do in real life. Think about the last time you updated your resume. Be honest... how accurately does your resume reflect your true impact and your true capabilities. Just a little spin? Just a little "interpretation" of your results? You know what I mean.
This thought occurred to me when I read this post on 800-CEO-Read about a new book called "Giving Notice" by Freada Kapor Klein due in October. The post highlights some interesting statistics on why people leave companies.
Ever since I read "The Halo Effect" I look at research with a bit of a jaundiced eye. I think people respond to questions on surveys in a way that is different than the way the act in real life. Specifically, in Klein's research for the book (reference below) being paid more fairly was listed in the top three reasons for leaving an employer.
My first thought is... "how do they know they weren't paid fairly?" and ... "what is fair?" In order for people to hold these points of view they would have to know how much others in the company were being paid (fairness is a relative measure - not an absolute) or others in similar jobs at similar companies. I know I don't have that information on my position. How do these people judge "fair?" And as a leader in a company - how do you compete with "fair?" Doesn't fair change relative to the yardstick?
I have talked to many people over the years about what would motivate them to do something different or stay with a company. When given the option of increased pay it is always at the top of the list. You can save a client a lot of money on surveys if you simply concede that if asked - employees will say they want more money. No point in doing the survey. It's just true.
Clients typically will then use that as justification for not running a non-cash program and just increase commissions. However, I believe this creates a mercenary environment. If you continue to increase pay simply because the employees say that's what will motivate them - they will quickly learn to keep asking for pay increases. In addition, you have now trained your employee base that money is the reason for being with the company. They are now "trained" to look for more money and have equated loyalty to your company with the amount they get paid.
My point with this post is that people do things for reasons other than what they say they do them for. (Great sentence structure.) Keep that in mind.
Your compensation and rewards systems are designed to support the employee AND the company. It's a two-way street. Don't design something one-sided and think it will solve your problems.
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Marketing and Incentive Design Consultancy