Is Money Still an Important Factor in Employee Motivation?
In the last couple of decades, management studies have been focusing on other methods of employee motivation besides money.
Recent studies have shown that while money may not be the only employee motivator, it is still very important.
Two Management Studies that Support Money as a Powerful Motivator for Employees:
- A Wharton School study on retail stores concluded that for every dollar increase in an employee’s salary, employers should expect to see between four and twenty-eight dollars in additional sales. Best case scenario, that is a return on investment of 2800% in sales for every dollar raise to an employee’s payroll. Worst case scenario, it is a 400% return on investment. This shows increasing your employee’s salary to be a worthy investment.
- An MIT study on different retailer policies had findings suggesting that stores like Costco and Trader Joe’s have more profitability, lower industry prices, stronger operation metrics, and better customer service because they give their employees better salaries. Not only does increasing employee payroll lead to higher sales, but it also leads to greater customer experience.
These two studies show that giving your employees a payroll increase could be a smart investment, as well as a great way of showing them your appreciation.
There are other ways to improve productivity and increase efficiency in the workplace. Another worthy investment might be a time tracking software, which allows you to manage your employees’ attendance in an organized manner.
Check out FingerCheck.com to browse our attendance tracking products.