For many employees, the pay that they are offered is the primary factor that determines their level of productivity and commitment. It is therefore not surprising that firms strive to outdo their competitors by offering generous pay and compensation packages. While the role that money plays in motivating employees remains clear, questions can be asked about whether huge amounts are sufficient to retain employee loyalty and satisfaction. Recently, a new trend where employees are choosing to give up generous perks and retire early has emerged. This trend indicates that while it is important, money must be accompanied with other benefits so as to secure employee loyalty.
Writing for Business Insider, Hillary Hofftower (2018) penned an article that explores the factors that motivate employees. In the article, she observes that more and more employees are opting to retire early. The early retirement is occurring despite the generous pay and benefits that companies are offering. She shares the example of a man who retired at 34. This man understood that the joy and freedom of early retirement outweigh the money that he was offered as an employee (Hofftower, 2018). His case is not isolated. Hofftower describes how more people are choosing to spend their time on pursuits that resonate with their spirits instead of receiving pay for jobs that they hate. Essentially, Hofftower suggests that money is never enough. Unless employers can offer additional benefits such as a positive work environment and flexible schedules, they cannot expect to maintain employee loyalty and engagement using monetary compensation alone.
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There are other individuals who have echoed the issue that Hofftower raises in her article. Renelle Darr (2017) is another individual who agrees that money is losing its importance in the workplace. She begins by describing how employees are becoming more demanding. In previous years, offering employees huge pay was enough to earn their dedication. This is no longer the case. As Darr points out, employees are seeking opportunities that enable them to feel fulfilled. Darr adds that employees desire to work with leaders who demonstrate consciousness and possess emotional intelligence (Darr, 2017). Furthermore, the employees demand that their companies must invest in their wellness. Overall, Darr makes it clear that to succeed in the intensely competitive environment of today, firms have to identify new approaches to safeguarding the wellbeing of their employees.
Liz Ryan (2017) is yet another expert who shared her views on the role that money plays in the modern workplace. Her article focuses on the forces that push high-performing employees to leave a company. She notes that despite being offered good pay, there are employees who abandon their organizations and pursue other opportunities. Ryan blames the exit of such employees on the failure of businesses to seek and value employee input. She states that when employees feel that their opinions are irrelevant and are not valued, they are likely to seek other opportunities elsewhere (Ryan, 2017). This happens even when they are receiving generous pay. Ryan also blames high employee turnover on poor leadership that fails to recognize the critical role that high-performing employees play in driving organizational growth. There appears to be agreement among different experts that money is not enough to minimize turnover.
In conclusion, that monetary compensation is a key determinant of employee productivity, satisfaction and performance is not in question. This has been made clear in the discussion above. However, it is also clear that on its own, money is not enough to incentivize employees. When a firm fails to respect the feedback of its employees, it cannot expect the employees to be committed. The key lesson is that even as they invest in offering high monetary rewards, firms should also establish a positive working environment that allows employees to achieve their goals, both personal and professional.
References
Darr, R. (2017). The new workplace: where meaning and purpose are more important than ever.
Forbes. Retrieved September 9, 2018 from https://www.forbes.com/sites/forbescoachescouncil/2017/09/13/the-new-workplace-where-meaning-and-purpose-are-more-important-than-ever/#6e5b0025a468
Hofftower, H. (2018). People retire early for 2 reasons, and neither of them is money. Business
Insider. Retrieved September 9, 2018 from https://www.businessinsider.com/early-retirement-isnt-about-being-rich-2018-8?IR=T
Ryan, L. (2017). The real reason good employees quit. Forbes. Retrieved September 9, 2018
From https://www.forbes.com/sites/lizryan/2017/03/31/the-real-reason-good-employees-quit/#20ff9f2f4b4e
