A variety of surveys show that workers want more than just monetary compensation. In their article in the Journal of Economic Perspectives, Ellingsen and Johannesson observe that "in particular, workers want a sort of appreciation and recognition from their employers that conveys respect" As a matter of fact, they report that, "workers sometimes respond negatively to what they perceive as signs of disrespect, including intrusive managerial control and even, in some cases, monetary incentives." However, inspite of a substantial body of evidence to the contrary, employers insist in their belief that monetary compensation out beats any other form of reward.
Dilip was one such client of mine who, inspite of my efforts to convince him to the contrary, insisted that monetary rewards were the best form of rewards for his employees. To find out just where the truth lay, I decided to conduct a survey of his employees which evaluated their ratings of five workplace factors; Self-fulfillment, Esteem, Belongingness, Security, Physiological/Basic. To my no great surprise (but to Dilp's great astonishment), the majority of his employees top rated Esteem and Belongingness.
The lesson for employers - those who treat their employees with respect may find themselves in the situation depicted in Salams cartoon. But those who blend it with monetary rewards, are in store for even greater rewards- a highly motivated employee force!
Ref: Tore Ellingsen and Magnus Johannesson, Paying Respect, Journal of Economic Perspectives-Vol 21, Number 4-Fall 2007-pages 135-149
