Secrets of Non-Cash Motivation
24.02.2015 12407

Secrets of Non-Cash Motivation

In the 2015 year, many leaders balance on the blade of a knife: during a crisis, it is important to keep the team, but at the same time reduce or at least not increase costs. In this case, non-monetary motivation can serve as one of the management assistants. Pabst Anna.jpg

Anya Pabst - Head of the Russian branch of BEITRAINING. Master of Sociology and Slavic Studies. Education "HR Manager", is a specialist in the field of crisis communication. He has experience working with people in study groups of various profiles both in Germany and abroad. Over the years, Anya Pabst has trained over 150 trainers. For more than 7 years, her professional activity is associated with work in the CIS countries - Russia, Kazakhstan and Ukraine.

BEITRAINING Is an international franchising company and a certified strategic partner of the German and Austrian Franchising Union on the topic of "Professional Development". He specializes in training and professional development in the field of management, trade, customer service and personal growth.

Motivated, but dissatisfied?

“Management is much more than giving instructions,” says Anya Pabst, head of BEITRAINING's Russia. “It's about guiding, supporting, delegating, and motivating employees.” Well, increasing motivation is a real carrot on a fishing rod, which is chased by most companies. At the same time, forgetting that a satisfied and motivated employee are two different things.

For example, if an employee does not fulfill the plan and is threatened with a fine, he is very motivated to attract customers and increase the average bill, but is stressed and may already be thinking about changing his job. Here we cannot say that he is satisfied and ready to equate his success with the success of the company. And the right motivation, including non-monetary, should help employees to be satisfied with the result of their work and its payment, which directly affects the success of the entire enterprise.

So, low sales is largely a matter of motivation. To increase it, you can use not only financial leverage, because motivation is a set of measures that encourage people to work and support them in achieving results. Non-monetary motivation looks more attractive in the eyes of managers, because improves profitability and production efficiency without increasing personnel costs. It demonstrates to the employee his professional recognition in the company, while the salary and bonuses only compensate for the work and note the special efforts in achieving the goals set by the management.

Non-monetary (intangible) motivation manifests itself in any form, the value of which cannot be fully expressed in monetary equivalent - from intra-corporate competitions, where a small or even a comic prize is a win, to the allocation of additional vacation days or training at the expense of the company. Incentives, which serve as beacons of non-monetary motivation, should solve exactly those tasks that are important at the moment, and cover all categories of employees. And while 20 percent of employees make 80 percent of the profits, according to the Pareto principle, the focus should not be on marketing and manufacturing departments alone. Every employee should feel like a team member, regardless of the size of the enterprise.

Motivators: the brink of a reasonable

It must be remembered that non-monetary motivation complements material motivation well, but cannot completely replace it. If the company does not provide employees with an acceptable income and working conditions, it is difficult to interrupt these factors with an active non-monetary incentive program, since the family budget, children's education and loans will turn out to be more important than comfortable shifts and friendly bosses. In addition, you cannot do without costs at all - the organization of corporate events and the working hours of employees are calculated in monetary terms, which expresses the “value” of non-monetary motivators.

In a small enterprise, where all employees know each other, and the manager works with them shoulder to shoulder, the non-monetary incentive program is easier to implement. In a large firm, the task becomes more difficult, because non-monetary motivators require an individual approach. Therefore, developing the program will most likely require focus groups, questionnaires and discussions between heads of departments.

Feedback is crucial. The justified choice of motivators is sometimes a very non-trivial task. Every employee, from a senior manager to a cleaner, has his own desires and needs. Therefore, the choice of the right motivators facilitates the transparency of doing business in the company, when the manager can easily tell the real needs of the employees of his department.

The non-monetary motivation program should take into account the characteristics of the company: they work with enthusiasm in a small team, because the results of each make a significant contribution to the existence of the company, everyone knows about their role. The larger the company, the more complex the scheme of production relations, and the need for motivators gradually arises. At the same time, one cannot refuse the effect of novelty, because motivators will cease to be such as soon as they become a routine. Ordinary, repetitive events and incentives cease to affect the degree of satisfaction and motivation of employees. And if it is customary to award the best employee every quarter, the award itself should be different.

A non-monetary motivation factor can also be the attitude of the management team with ordinary employees, transparency of processes and information about business decisions and the prospects for the development of the company. All this contributes to the employee's confidence and his willingness to connect his future with the company in the long term. Thus, according to statistics, hardly a third of Russian companies effectively inform their employees about the most important decisions. More than 60 percent are convinced that management is using gray schemes in business. Only every twentieth respondent agreed that he trusts the management. This situation is not conducive to confidence and motivation.

About the material world of intangible motivation

When is it time to think about the mechanisms of non-monetary motivation? In fact, even before hiring an employee. After all, when choosing from a list of companies on the market, the applicant pays attention not only to salary (which is often referred to as "negotiated" and is discussed already at the interview), but also to the social package. Social benefits, travel passes, meals in our own canteen, good medical insurance and a subscription to a fitness center - all this is already the first stage of non-monetary motivation, prompting an applicant to apply for a vacancy. If an already motivated person came to the firm, then less effort will be needed to maintain and develop his work achievements.

Non-monetary motivation is very diverse. Often it is directly related to material aspects. This includes guarantees of social benefits from sick leave payments to seniority bonuses, incentives for anniversaries, birthdays and at the birth of children, status privileges (company car, phone payment, own assistant or secretary). The company has many opportunities to diversify non-monetary motivators - for example, agreeing with the clinic about vaccinations during the period of infectious diseases, with the canteen for free meals, with the transport company on official bus routes that deliver employees to places of work located not in the center or completely outside cities.

It is not necessary to settle accounts with these organizations in cash - perhaps a kind of barter for the provision of services will do. So, it can be an exchange of discounts with retail chains-partners, internships abroad in foreign branches, participation in training programs. The specific mechanisms of non-material motivation largely depend on the profile of the enterprise, its partnerships, the urban environment and even the local climate, which determines the daily tasks and needs of employees.

An obligatory point is to evaluate the effectiveness of the applied non-monetary motivators. It consists of indicators of the employees' interest in specific measures and activities, the results of the questionnaire and, most importantly, the assessments given by the HR manager in agreement with the direct heads of departments. The employee turnover rate also has a significant impact.

Motivation - Satisfaction - Efficiency

Non-monetary motivation at Russian enterprises is often replaced by elements of corporate culture - New Year parties, collective paintball games, and outdoor trips. Leaders are confident that the motivation of employees is off scale, while there is practically no return from the activities. The reason lies in the fact that the activity of HR managers will not replace the immediate responsibilities that the manager must fulfill.

“Non-financial motivation of employees is one of the many responsibilities that form the basis of the activities of every good leader,” says Anya Pabst. "Remember that the transparency of the management scheme, the ability to delegate authority, distribute responsibilities and retain the right people are interrelated factors, where one cannot be without the other."

The ability to listen to the employee, ask his opinion on time, let him go to a sick child early, show trust and participation - all these skills and communication skills also occupy a niche in a wide area called non-monetary motivation. As a special type of activity of the manager, it has a direct impact on the success of the enterprise. It is in his hands that most of the levers are located that can motivate and demotivate the employee, realize his potential through the performance of work duties. Not only the working climate, but also the future of the company depends on the manager's ability to deal with people and his leadership qualities.

In the 2015 year, many leaders balance on the blade of a knife: during a crisis, it is important to keep the team, but at the same time reduce or at least not increase costs. One of the management assistants in this ...
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