Money isn’t the only thing that motivates someone to perform well at their job, but it certainly factors in heavily.
How to give your staff a pay-rise without it incurring an increased wages bill
Your employees drive your business forward because firms that consistently attract and retain motivated, committed staff thrive. That means, while money is just one factor, salaries and bonuses are directly linked to your companies success.
Which means employee salaries and benefits are vital business decisions. Moreover, financial rewards help sustain your employees’ lifestyles – and are a major determinant when someone chooses where to work.
Ultimately, offering your employees the opportunity to accrue additional financial benefits helps underpin your success and their happiness and motivation.
So, here are three reasons why offering staff extra incentives helps attract the right people, boosts productivity and reduces costs.
The psychology of why adding additional benefits can increase your bottom line!
1. OFFERING EXTRA FINANCIAL REWARDS ATTRACTS HIGHLY SKILLED PEOPLE
One of the most effective ways to attract really top calibre people is through providing extra financial benefits. In fact, research by the Australian HR Institute has found, “the lure of better pay elsewhere is reported as the second strongest factor in why employees say they leave.”
So if your business ensures it offers a good salary, and the opportunity to accrue additional financial benefits, it has a better chance of appealing to top candidates – and keeping them n the business once they have decided to join the team.
2. EXTRA PERKS EQUAL A HIGHER LEVEL OF OUTPUT
Giving employees additional financial benefits supports their financial security and encourages them to deliver above-average work and effort. This is because when money is less of a concern, workers can more fully focus on their projects. They have fewer worries about staying financially afloat, which makes them more present in the office, leading to higher levels of productivity and better quality work.
So it pays to offer your top performers every opportunity to deliver outperformance. You can do this through providing additional financial benefits to staff that reach or exceed their targets, creating a virtuous cycle that benefits the business and its most important asset, its people, cementing an ongoing culture of high performance.
3. GREAT PERKS CONTRIBUTE TO HIGHER STAFF RETENTION AND BETTER PRODUCTIVITY
A well-compensated team and engaging culture makes employees more likely to stay in their jobs long term. The longer a top performer remains at your company, the better they understand the systems, norms and mission. That creates stronger teams and bonds in the office. High employee retention also means the business experiences less disruption from new hires having to learn new duties.
A stable workforce also means the business will spend less time and money looking for new hires and interviewing. At the end of the day, high staff retention lowers costs and creates financial stability for the business.