According to Frederick Taylor’s Scientific Management Theory, employees are motivated by money.
But is this really true? Can you buy employee loyalty through a pay raise?
Most businesses seem to believe so.
While money plays an important role in convincing some employees to stay, that’s not always the case.
According to Maslow’s Hierarchy Of Needs, employees are motivated when their psychological needs are met and they’re in a safe working environment. But there’s still some debate whether monetary benefits outweigh fringe benefits.
Here’s why money is not the only answer:
Employees Want to Feel Valued
Let’s say you’re working for a large company that’s offering a better pay than other organizations in the same industry. But there’s a catch: there’s a lot of work, inflexible timings, unhelpful managers, and you’re always inundated with complaints from clients.
You’ve had several meetings with the management but nothing helpful ever comes out of it.
This makes you question whether the good pay is worth the disrespect you’re dealing with. If you get an offer from another organization that offers less but more employee benefits, would you consider it? You most likely will.
Imagine being part of an organization that celebrates your hard work and offers perks to make you feel more valued. Whether it’s through medical insurance, free lunch, transport, or flexible timings—employees want to feel appreciated.
According to a report published by the World Health Organization, many employees feel stressed out because they feel they’re not in control.
The report also states that the problem is made worse when employees feel they don’t have any support from their supervisors.
Most Employees Hate Routine
Coming to work every day, listening to the same complaints from the same clients, and working long, exhausting hours isn’t someone’s vision of a “perfect” workplace.
While some employees may put up with it if they’re getting paid more, Millennials have a different view. According to a Gallup report, Millennials are the least engaged generation and 6 out of 10 Millennial employees are likely to switch jobs within a year.
The same report states that Millennials are more likely to switch jobs if they’re not given perks and opportunities to stay.
Another report states that 58 percent of Millennials admitted they plan to work for less than 3 years in any organization.
Lack of engagement is the number one reason employees leave. When an employee becomes “bored” of their work or feel they won’t learn something new, they seek opportunities elsewhere.
Employee Benefits Can Fill the Gaps
It goes without saying that Maslow’s theory is perhaps more correct. Along with monetary growth, employees need to feel appreciated and valued.
By offering perks and benefits, organizations can retain talent. According to a report, nearly 3 in 5 people admitted they look at the benefits a firm offers before considering a job opportunity.
According to a survey conducted by Glassdoor, 4 in 5 people admitted they prefer benefits over a pay raise.
Medical insurance, flexible hours, transport, pension funds, and other types of employee benefits are some of the many options organizations offer to retain talent.
Every organization is different and not every company can offer various benefits. If you’re looking for an HR consultancy firm in Pennsylvania to figure out what type of benefits you can offer, call us at (877) 355-6070.