David Colman: Employees are motivated by more than just money
- January 14, 2008 7:43 AM |
- By Michael Hlinka
Money Talks is a collection of daily columns from The Business Network, which airs weekday mornings on CBC Radio One at 5:45 a.m. ET (6:15 a.m. ET in N.L.).
By David Colman, a partner with TriOpus Group in Regina
(Listen to the original audio)
There's been a lot of interest lately in the letter that Richard Branson sent to 4800 cabin crew of Virgin Atlantic Airways. In essence he told employees that if they wanted more pay than they have been offered, they should probably go work somewhere else. Much of the reaction to his letter has been polarized - those heavily supportive and those equally opposed.
As leaders, regardless of where we stand on Richard Branson's comments, it is an issue that we all must face at one point or another. It raises the question of the importance of wages and benefits to the overall value of working for an organization.
Branson's position is that the business cannot afford to pay more and that the overall enjoyment of working for his company as opposed to working for the competition far outweighs the lower wages and benefits. Whether you support his position or not, you have to admire the fact that he has openly expressed his thoughts.
Historically, others would argue the opposite and that unless the basics are well taken care of, namely salary, benefits, working conditions and so on, it will be impossible to attract and motivate employees to be happy in their work. This most certainly would be the position of the late Frederick Herzberg and Abraham Maslow.
Neither you nor I are responsible for Virgin Atlantic but, as leaders, we need to attract and retain the best available talent for our companies. Not only do we compete for employees in our own industry, we compete against all of business and industry both locally and internationally. Here are some important things to remember:
Employees are an investment and an asset, not just an expense.
Be as competitive as possible with your compensation packages.
Never assume that salary and benefits are enough. Seek to understand what will make employees loyal to you.
To be successful, we need employees who feel they are valued, that are fairly compensated, and who look forward to coming to work every day.
Whether we are leading Virgin Atlantic Airways, running a corner store, or doing the jobs that you and I do, there is only one thing worse than losing employees because they are dissatisfied, and that is having unhappy employees that stay.
-- David Colman
(Click on the comment link below to share your view)
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Comments (8)
I agree with Branson. He is not playing games and he put his thoughts in the open. Its a gamble if he is not confident that Virgin is a nice place to work risking a mass exodus.
Current corporate climate is one of cut-throat competition and stress and I am not sure if all employees want a raise half of which goes to the government as income-tax just to fund special interests. I would rather have more vacation time, flexible work schedule and a congenial environment and offer the same to my employees. I can make a million bucks, but what good is it if I cannot take a day off when my children has the flu?
I agree with Ganesh ... past a certain point, salary is not as important as flexibility in the workplace wrt lifestyle. Knowing I can take various types of leave for example as my circumstances require and enjoy other benefits including medical coverage, pension, PD opportunities etc makes for an enjoyable workplace where one can concentrate exclusively on professional challenges and opportunities for the benefit of the employer. As a college instructor, 10 weeks of annual vacation goes a long way as well but it is usually well earned ;-) One doesn't mind putting in the extra hours for the employer's benefit as it is returned on the other end and fulfills higher personal needs beyond salary. A satisfactory salary and benefits package is the starting point, however ... a million dollars not necessarily.
I recently travelled from UK to India on Virgin Atlantic. This was one of the best airlines that I have travelled on. I could not have had this kind of an experience if the employees were not really happy. Branson must be doing somthing right if his employees are not being paid the top $ and yet so enthusiast.
After 5 years I decided to quit a high paying but highly stressful job to save my life.
My current job pays me a lot less money but I am actually much happier.
My salary is decent but more importantly my benefits incl. generous sick days, family related leave and up to 3 months off per year with slightly reduced pay.
Due to Canada’s progressive tax system I am actually better off with a lower paying employer that allows me the time to enjoy my life.
I love where I work and very loyal to my employer. I am in my late 30's but plan
to retire there.
There really are more valuable workplace incentives other than money.
I do agree that you must like your Job, and enjoy going to work everyday. I am in commision sales so it its very important that you are a self motivated individual with the drive to be successful. So this is a job that you can excel in, permitting market conditions... I belive you need to be appreciated and a pat on the back now and then never hurt anyone. In order to be successful, and make good money, you must set goals for yourself, and try you best to achive them, only then you will be truly happy with you accomplishments.
"Employees are an investment and an asset, not just an expense."
David;
I think this statement says a great deal about your worldview,
Asset:
Any item of economic value owned by an individual or corporation, especially that which could be converted to cash.
Investment:
In business, the purchase by a producer of a physical good, such as durable equipment or inventory, in the hope of improving future business.
(Investorwords.com)
You seem to be claiming that Employees are no more than chattel to be used and disposed of at their owners whim.
I’d try viewing that relationship more along the lines of; your employees are investors in your business who invest their time and energy rather than their cash, and will demand a reasonably return on their investment.
As both an employee and an investor, I get treated completely differently by the “C” level, when I’ve put a few thousand dollars into a company than those in which I’ve put a few thousand hours, which is odd because my hourly wage is considerably more than $1.00 an hour.
Right on Mr. Colman. The worse thing is to have unhappy employees that stay. Makes the workplace hellish. Unfortunately I'm one of those employees. Too old to start over.
The amount of money you make yearly is not worth the aggravation if you can't actually live your life.
It's about time CEO's speak openly about these matters.
This whole question is based, in my opinion, on the level of income of the employee. A professional on a six figure salary might have the option to take a 20k cut in order to have a better life. This is not he case with an employee who is earning 40-50k. He/she does not have the option to take a salary cut for quality of life. I suspect that they would find this whole discussion spurious. A modestly paid employee will look to salary first every time and if there happens to be better working conditions involved then that is a bonus. To state my bias, I earn in between the two examples.