What’s the one fringe benefit that motivates at least 60% of workers to give a little extra?
When 134,000 people were polled by Kelly Services recently, about three out of five had a firm answer: profit sharing, or some similar financial stake tied to the company’s success, would or does make them work harder. And the response was fairly uniform worldwide — workers in the United States had roughly the same response as workers in Europe and Asia.
Here’s the kicker: The majority of respondents said profit sharing was the chief motivator, but their employers had no profit-sharing plans.
A few highlights of what else came out of the study:
- Profit sharing as a motivator was cited more often by Gen Y and X than by baby boomers.
- The next-most desired benefit was health coverage.
- 60% said employers should provide incentives or rewards to employees who participate in wellness programs.
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Tags: Kelly Services, profit sharing
September 23rd, 2010 at 2:47 pm
Sounds basically like employees want to feel more connected and valued to their companies.
September 23rd, 2010 at 3:20 pm
What they say and what they do are two totally different things. Study after study has shown that money if NOT an effective motivator. And I can confirm it from personal experience with my own employees: profit sharing did not improve performance.
September 23rd, 2010 at 4:29 pm
Not having been in a profit sharing situation I can certainly see how the experience may or may not work.
I think it all relates to how management works with their “subbordinates”. If there isn’t a team environment that allows people to express ideas and see that they and their idease are respected, listened to and in some cases those ideas put into action and paired with consistent, feasable guidelines and expectations people will simply plod along. They won’t strive, they won’t have incentive to achieve and they certainly won’t go the extra mile to ensure a project comes off without a hitch. Even if you have a pay-for-performance system in place they know that as long as they do the basic motions they’ll get a raise.
However, if there is a dynamic, invigorating and accountable work place where even at it’s busiest people are working toward a common goal (and believe in it) they will work harder because they know the ideas they put forth will be recognized (even if unsuccessful). The recognition is more substantially appreciated if it’s monitary (like with a profit sharing system) but if managers don’t take the time to thank and recognize (verbally and in writting) people for their efforts the shine is going to wear off of the money. Ego stroking makes the world go ’round.
September 24th, 2010 at 11:56 am
I have seen the profit sharing work at first and then become looked at as an expectation, no longer an incentive. There were even employees who felt their “salary” was reduced because the bonuses were smaller or in one year zero because the Company although barely profitable, was cash negative for the year (buying capital and paying mortgages).
It does appear that no matter the plan, some employees will expect a bonus no matter the ultimate results. What I found most interesting is the employees who really worked hard, created and implemented good solutions did so whether or not there was a bonus. Guess how well the others who expected abonus performed.
Pay good employees well. Offer reasonable bonuses. Define equivilent goals so everyone is expected to perform and contribute. Hold poor performers accountable (no bonus or much smaller bonus depending upon their accomplishments). And apply appropriate discipline regularly.
September 24th, 2010 at 4:32 pm
Well put Alan.