Faced with a target in my head, most of my decisions as a head are calculated. The coveted reward at the end of the rainbow is the bucket full of gold.
While motivating employees with money has its significant advantages, it is not the only way that employees can be truly motivated.
MONEY IS UNIVERSAL
There is a reason why many hip-hop artists rap to the tune of money. It is a universal motivator that drives people of all walks of life. Without money, how can we survive?
Its universal nature is one of the advantages of using money as a motivational tool for employees. You see, most people see bonuses as a means to purchase material possessions or personal experiences that they have been putting off for a long time. While the monetary increase is the same for each employee, its uses vary. That is what makes money fit for all!
MONEY IS COSTLY
It comes as no surprise that money is costly. A huge drawback of using money to motivate your employees is that it adds to your overhead costs. You have to give up a portion of your profit for each time you offer a bonus or a raise.
What is even costlier? Some employees may expect to get consistent monetary rewards for each time they exceed their performance expectations. The terms of the reward should be discussed clearly to your employees.
MONEY PROVIDES STRUCTURE
Monetary rewards can be quantified and structured, unlike its counterparts. A business owner may come up with a starting point and an end point. Incentives can be achieved once the end point has been reached. Sales programs usually structure money incentive through commission or quota-based sales. These two are individualistic.
On the other hand, you can fuel up the teamwork by creating a percentage goal. Reaching a certain percentage goal at the end of the year can equate to a certain bonus. This fosters teamwork where everyone is motivated to help each other.
MONEY BREWS CONFLICTS
Last but not the least, money motivator can cause conflicts within the group and the self. It can be demoralizing for some people to consistently fail in getting a certain reward. More so, comparing your bonuses to others can brew conflicts. Some team members may resent others when they do not automatically get their slice of the “cake”.
As a leader, understanding your team is far greater than any monetary incentive. Know what is important for each employee and try your best to keep them happy and healthy. Find the best incentive program that will work for your team whether it involves money or not.