The employment offers I have received mostly outlined monetary compensation or compensation related to savings on my potential expenses (gym subscription, relocation allowance, transportation coverage, food vouchers, etc.), which is great and important (at the end of the day, each of us has to cover the bills). However, just very few of them next to all the monetary benefits clearly outlined the non-monetary compensation – e.g. a reward related to aspirations for growth, extensive coaching, work with an experienced supervisor, high level of responsibility, space for initiative, very specific experiences, etc.). During different stages of life and career, the non-monetary compensation might be, and usually most of the times is, ‘heavier’ in terms of importance than traditional monetary one.
The term ‘compensation’ is more considered to be related to monetary rewards. Maybe it is the time to make it broader and more inclusive? You might argue that growth, experiences, freedom, everything else I mentioned above is common sense and is naturally a part of one’s experience with you; but how many of you, employers, are consciously offering such opportunities and are stimulating your people towards what they need and want? And if you do, how can you push it forward more?
My coaches at the university have always been preaching and practicing: ‘you cannot motivate people, you can only reward their motives.’ When you know people’s motives, you can reward them; and you can reward them specifically based on these motives, meaning they exactly get the reward they want/need/aspire for. So, find out your people’s motives to be a part of your organisation.
Figure out what drives your people, what they find important, what stimulates their productivity, what they find the most appealing in their employment conditions and their roles. Have an “evidence based” overall picture, which will help you shape your compensation system. This is applicable to your current staff as well as newcomers.
You might find out that you need to reward people’s motives by providing them with interesting work requiring creative approach, the opportunity to see clear and measurable results of the performance, career growth, opportunities for self-expression and push towards development. Your organisation’s mission and vision can be one of the main reasons why they are with you. They might also appreciate flexible working hours and freedom to arrange their work in the most convenient for them way.
Next to other benefits, this “knowledge” will also help you retain your people. With globalisation and improving economic situation worldwide, people start having more employment choice again. You cannot retain people without knowing what they find important and what they value. If you do not apply this knowledge in appropriate compensation, they are gone.
My message to the employers to start and to continue to: have a dialogue with your people, figure out their motives and reward them appropriately. Make it already a part of your recruitment process, include this information in your employment offers. Inspire your people, make them feel proud of being a part of your team, help them realise how their contribution is important and what the impact is. This can be achieved through non-monetary compensation. At the same time, keep on working on your monetary compensation as well. Use both! Only both can lead you to success.
My message to employees: reflect on your compensation (monetary and non-monetary). Share with your organisation your motives for being a part of it, give your feedback and help your organisation develop beneficiary compensation to keep the collaboration productive and happy.
By: Liubovi bosenko