This is the biggest challenge that an organisation faces, especially in times of growth. Are the people who matter the most, paid well? Needless to say that this is not the only question as there could be many more like - How much? When should we stop? and finally, what else matters, other than money!!
Quite often organisations have salary and compensation as a glaring reminder popping up in Employee Engagement Surveys. What does this mean? Would an organisation survive if they didn't pay heed to this survey outcome? Let's see...
Money - the cause for attrition:
Age & maturity:
Depending on the age and maturity of the employee, they can very easily be susceptible to modern temptations, irrespective of having the best boss, the most enviable organisational environment and a decent position in the organisation. This is not restricted to fresh or relatively less experienced employees alone.
Peer pressure:
Very often, after an employee leaves the organisation, there could be fall-outs, strangely from unrelated functions. One of the reasons would be that the so called 'market-value' becomes public with a peer having left the organisation earlier.
Brand matters but money matters more:
Even in market-leading organisations, money could be a cause due to other factors, other than that of the brand of the organisation. The reason generally cited is that they could make twice the money in half the time. An effective bonanza!
Money - the hope for retention:
Monetary Rewards:
Not just Recognition, but Rewards also have to be given to people for their contributions. In today's environment, there is an award for almost every aspect. For example, being punctual and regular (which in the yester years was assumed) could fetch one an Attendance Award, today.
Bonus of retentive nature:
Retention Bonus, Joining Bonus, 13th month salary, loyalty bonus and more. All these payments have one thing in common - one has to be in an organisation for long, to enjoy these benefits. So yes, money pays!!
The sky could be the limit, when it comes to money. One would have experienced this atleast once in his or her lifetime. Depending on the need of the hour, the answer would vary. Also, no individual would in his sane mind say that he would work more and get paid the same or lesser.
Lastly, it may be said that the satisfaction derived from money is temporary. Its not the only means to happiness but one of the means of happiness.
