Motivate Without Money

Q. Many of my people are losing their motivation because our pay raises are either frozen or are limited to about three percent—about the rise in the cost of living. We’ve lost some good people to competitors who offer them more money. Is there anything else we can we do to motivate them to stay? — Ronald D.

A. This may surprise you, but money doesn’t really motivate people very well—at least for very long. Assume nothing will change significantly in your present job: same boss, same work, same environment—except a salary increase of, say, $10,000. How long would that increase motivate you to work harder and better, and produce better results, day after day? Maybe three months? Then you’ll want even more money, because by then you’ll count on the extra $10,000—it’ll seem normal.

Most studies on motivation and morale show that recognition, respect, and praise for good work motivate people better, last longer, and produce greater results. (This assumes that people in your company have pay scales similar to others in other companies . If your company’s pay rates are significantly percent below the job market, then money probably is a key motivator, and salaries have to be brought in line.)

Let’s assume the pay is equitable, but further raises aren’t likely for many reasons—including management’s choice of keeping people employed, rather than laying them off and making those who are left pick up the extra work. There are many things that you can do to keep morale high other than giving people more money.

Create a Positive Environment

This may sound simplistic, but making people feel appreciated—day after day—will do more than anything to motivate people and keep morale high. You can create a positive environment just by assuring that four out of five contacts you have with each person is positive—not negative, and not neutral. Maintaining this 4:1 ratio is harder than it looks, but it works.

Want to test how positive the environment is at your workplace? Ask yourself what you’d feel if your boss said she or he wanted to see you in the office tomorrow at 10 a.m. If you’ve been used to getting at least four times as much praise and recognition as you get negative feedback, you’re probably enthusiastic. You look forward to the meeting. And why not? You usually get praise, not criticism. But if you’re even a little concerned or worried about what will happen, it probably means you’re used to getting little or no praise—certainly not in a 4:1 ratio. It means you’re working in a generally negative environment.

Try using the 4:1 technique yourself on those you work with—especially those who report to you—for a few weeks, but start off slowly—2:1, then 3:1. Otherwise, people will suspect your behavior. And keep it up every day. It probably will take less than two weeks before you start seeing positive reactions from people—and positive results. Once the positive environment is in place, people will welcome an even greater variety of non-monetary motivators. Studies reveal several major motivators for human behavior. Here are just three:

1. People work hardest, are most dedicated, when you let them know they're a

part of the team: ask them to cooperate; make them feel important.

2. A highly effective, self-directed work team is the best motivator.

4. The manager who motivates best will be a facilitator, rather than a director.

And consider these ways to motivate co-workers, which you can tailor to fit your company’s culture, and the individual needs of your people:

Certificates, flowers, letters of recognition for outstanding contributions

Photos of major contributors for special achievements

Birthday cards/personal phone calls from the manager

Assignment to more challenging projects

Greater input into assignments

Time off from work for family or personal reasons

More supervisory or leadership responsibilities

More desirable work space; new or better equipment

Easier and faster access to management