What motivates employees? What can companies do to retain top talent? Apparently it's not throwing more money at them (though, in fairness, some people seem singularly motivated by money).
What motivates people is engagement. According to Seth Godin in his recent post Q: What sort of bonuses should we pay?:
"Money, it's been shown time and time again, is a demotivator. I'm not talking about a fair or even generous salary. Being a cheapskate is no way to find a great employee. But once people have joined your team, incremental money--bonuses and the like--usually demotivate people. They demotivate because sooner or later, people feel as though they're being treated unfairly."
Here's the point:
"What [people who really and truly love their jobs] have in common is a boss that gives them respect and freedom and responsibility. A boss that listens when they have something to say. Which, not coincidentally, is exactly the way the best companies treat their customers, too."
Also, the Welch's get in on the discussion with Money as a Motivator?
Money is still important. It's the "outward" way in which employees can assess how their contribution is valued by the organization. If you're being compensated fairly, however one individually measures that, then that may be a sign that your contribution is being valued - if not, then that may suggest something quite different. This is the case irrespective of how much your opinions and views are "listened to" as the year goes on. I think where compensation is out of whack with corporate values or where, there is inequity or unfairness within the compensation model, people will leave, in spite of how "well" they are otherwise treated. It'll probably take them longer to walk (maybe allot longer in some cases), but at some point, I suspect, they'll do it.
The question, I guess, all relates to fairness, honest communication and respect.
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