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Money Can't Buy Love or Employee Engagement
Years ago, in a team meeting prior to negotiations the boss walked in and heard what the other side was asking for. In fairness, it was more than we could afford, and both sides knew it. He said, “We could double their salary and they’d be happy for about one pay cycle.” He may not have known the psychology behind it but he was correct. The premise behind what he said stuck with me because after years of negotiations, and my personal experience, I’d seen it play out over and over again. Employees get a raise, everyone’s happy, they receive their checks with the extra loot and the good feeling is validated. An odd thing happens soon after that check clears, the happiness about the raise goes away and people seem to quickly revert back to their pre-raise personalities. It wasn’t until my boss made that comment that I thought about it, and it wasn’t until recently that I decided to look into why the happy doesn’t last longer or build momentum. Or what leaders can do to build on the temporary uplift to make it a more permanent thing. Or if that’s just the nature of negotiations. Lets dig in.
Effectiveness of money as a motivator, a study; Does more money make a job more satisfying to employees. In 2010, Tim Judge reviewed 120 years of findings in 90 different studies into the relationship between money and job satisfaction. His research found that there is a weak relationship between wage and job satisfaction. His research also revealed that employees at the top level of the pay range for their job were no more satisfied with their jobs as people on the bottom level of the pay range for their job. Judge did find that people are more satisfied with their job when they feel that they are being compensated fairly. Research finding after finding reveals no correlation between pay and engagement, with engagement defined as fully absorbed by and enthusiastic about their work and takes positive action to further the organization’s interest. An engaged worker has a positive outlook on their end of the deal, and as a result looks out for the interests of the organization. The conclusion, employee engagement or satisfaction cannot be purchased. Believing that negotiated wage increases, or raises, will improve satisfaction, engagement, and behavior will lead to frustration because money does not drive engagement.
So, if money does not influence job satisfaction or engagement, then what actually works? If I were in a position where this information were not available, I would ask employees what would make the office more engaging for them. In fact, I have access to a good amount of information and I ask anyway. I’ve included five strategies from my studies you can use to build a more engaged workplace.
1. Make work an enjoyable place to be. Anxiety about work happens the moment you realize it's really time to go, then the dred kicks in. This happens around bedtime or when your alarm goes off in the morning. People like to have fun and unless you are a videogame tester, food critic, or mystery shopper, chances are your workplace could use some uplift in the fun department. I’ve seen offices use rubber chickens, rallies, gift cards, fun competitions, and decorating to help create a more fun environment. What you do isn’t as important as your doing something. If you’re not inclined in that direction, ask your team, you’ll find there is someone who has enthusiasm for this very task, give it to them and watch where it goes. Get in front of employee dred about the workplace and build a lighter environment for your employees.
2. Remove barriers to their success. People constantly run into obstacles such as other people, resources, time, and, of course, their boss. They work around most of them, the ones they can’t work around, be a boss and move it for them. Provide them the easiest route to success you are able to provide. Build a reputation as a problem solver and you will be the benefactor of their grace. If you see a problem, fix it, or teach them how to fix it. Until they are comfortable bringing problems to you, establish yourself as the person to come to when they have reached the extent of their abilities. Coach them up and watch them grow. One last time, find out what’s getting in their way, and move it.
3. Meet with employees regularly, connect. I’ve been in places where you only see the boss when there is a problem. This builds tension any time word comes down that the boss is coming, or (gulp) shows up unannounced. When the boss arrives, people tighten up and only say what they think the boss wants to hear, flowery language about how great things are or stories about the weather and its impact on their work. Your regular presence eases tension and opens people up to you. This easiness opens up their information to you too. First hand information makes you a more informed leader so make time to connect professionally and personally. Yes, this will take time and patience on your part but the payoff is more than worth it.
4. Give them space and grace. Are you a micromanager? Insistent on things being done the way you want them to be done while you watch and criticize their every move? Stop it! Hand them a job, tell them what you want done, remove barriers and let them work. Yes, they will make mistakes, but if you’re there to coach and mentor, they will improve. The greater benefit is, the leader may learn new ways of doing things just by being open and providing space and grace. Grace is forgiveness before it is earned, the benefit of the doubt, your belief that they are doing their best. The very attention you hope your boss gives to you, your team is hoping you give to them. Space and grace extend it and get out of the way.
5. Celebrate! One of the biggest gripes from employees is that no one ever says anything good, but boy, if you make a mistake, managers come out of the woodwork. It's easy as you move from important task to important task, to miss what is going on each day in your organization so be deliberate about this one. Look, ask people, compile a list of ‘good things’ and celebrate regularly. This acknowledgement is great for the target of your spotlight, as well as the witnesses and even people who only hear about it. The whole organization benefits from your recognition of the good things that happen all the time. Don’t expect them to be satisfied with the intrinsic rewards that come with putting in a day’s work, it won’t happen. Give them plenty of opportunities to revel in your approval.
In 1996 Blackstreet remade the 1964 Beatles song, Can’t Buy Me Love. I have to be honest, I’ve loved this song for 25 years and because it was done so uniquely, I didn’t know it was a rearrangement. I literally held the lyrics next to each other on August 29, 2020 while listening to them on youtube (laughing at myself). Anyhow, in it they both sang, “Say you don’t need no diamond rings and I’ll be satisfied. Tell me you want the kind of things that money just can't buy. I don’t care too much for money, money can’t buy me love.” The Beatles were singing from a perspective of someone who didn’t have a lot of money and only wanted love. People will say they want money, heck we all do, but at work money won’t make anyone happy for very long and it certainly won’t buy engagement. Only engagement in employees will buy that so invest in them. If you don’t invest in your people and your culture, you’ll end up paying the money, enjoy short periods of happy, then go right back to suffering their disengagement. So pay people a fair wage, and invest in their engagement with yours and you will SOAR!
Blackstreet, Money Can't Buy Me Love
Beatles, Money Can't Buy Me Love
William A. Brown
August 30, 2020
http://m.timothy-judge.com/Currall%20et%20al.%20PPsych.pdf
