Although money may not be the only motivator in the workplace, it is the basis for the attitudes and behaviours of employees. If an employee feels they are being well paid and rewarded financially for their hard work and any extra effort, then they will be more likely to work hard and strive to gain these financial rewards. However if an employee is unhappy with the money that they are receiving for their work then it will be very difficult for them to be motivated in their work. One other view that supports money being a key motivator is that people feel that they are highly valued if they are receiving a decent salary. The higher their salary the more valued they feel within the organisation and so the more likely they are to work hard in their job and be motivated in their work.
The employees have a lot of power in the company, being that they are investors and also customers. Furthermore, they represent the company. This order may be the best strategy, since if done well the investors won’t leave but possibly invest a little more. Since they are so fickle and hold so much power they can either be pacified and/or encouraged to invest more. Being the “worse of the lot” they will get the most attention.
That seems good; however, it is not so simple. If a CEO stands to get a ton of money if he or she is laid off during a merger, he or she might want to lay him or herself off to get the benefits. This makes golden parachutes not so good, but a lot of CEO still receives them because companies know CEOs want them, and some companies think they can get a better CEO if they offer one. Another thing companies must consider is the sector they are in because golden parachutes are a lot more important in sectors with frequent
This is clearly shown by majority of workers in a number of companies or organisations across the globe. Therefore, money is the driving force in determining the level of commitment workers have towards a particular job or company. For instance, a worker can receive benefits from the organisation he or she works at. Such may include frequent vacations, proper housing, and working conditions, but without good pay, the worker would still not be motivated to work. Poor payment of workers leads to high turnover, where employees move from one job to another as they seek for higher salaries and wages.
Throughout this paper we will discuss the issues of retention and bring to light how much money not retaining employees can cost a company. Additionally we will explore what drives attrition and how to over come those issues, so that a company can retain its employees and cut operating costs. Attrition has and probably always will be that elephant in the room at every organization. It not only cost the company money, but it also detracts a lot of promising potential if there is a negative reputation for a company. Attrition is so important to keep down for a couple reasons; obviously cost is the main reason.
Though Davis and Moore claim that these salaries are positively functional for society because it brings the qualified people into the highest positions, it can be argued that are a number of functionally necessary jobs that are being compensated much less. Karl Marx states that wages and salaries are created on the basis of human needs, but for CEOs to be making millions exceeds what humans need to survive. Examining this information, it is clear that the soaring salary of executives needs to be tamed before the issue of income inequality becomes irreversible.
Do you know that employers are overly concerned with the employees they hire nowadays, unlike in the recent past? Now you do. Essentially, the process of hiring an employee can have a great impact on the future of a company, and hence there are several key concerns employers raise during interviews. In fact, according to a recent research, it has emerged that finding and keeping the right employee has become one of the trendiest issues with employers nowadays. This can be attributed to the fact that HR professionals believe that only the top talent is quite indispensable to the company’s success especially during the modern day harsh economic times.
Understanding the reasons people leave is the first real step in addressing the issues of retention and attraction. Once you have a clear understanding of these reasons, you are ready to move to the next stage of developing an attraction and retention strategy to get and hold talented people. The formula for attracting and especially retaining top talent lies in creating a high level of job satisfaction which includes not only the work itself but factors relating to the climate or work environment. One of the most over-estimated reasons companies think they attract and retain top talent is through financial compensation. However, financial compensation is ranked very low by many employees when compared to achieving job satisfaction.
If the employees are satisfied for their demands the growth-required production will reach, and the company gets more profit. Key Posts To run a successful and a large setup business there are some hidden actors behind the scenes. Chair Persons, Executives, Chief Executive Officers, Managers etc are not only the good planners but also a major shareholder to get the company’s goodwill in the market. They played an important role in the company. Their salaries and compensations are not enough if they are a professional and played an important character to bright the company’s name in the local or international markets.
Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.