Two-thirds of Australian workers expect pay rise in 2012

Two-thirds of Australian employees believe that their salary does not accurately reflect their performance, according to new research from Randstad. The research also revealed some bad news for employers, finding that those dissatisfied staff expecting their salaries to be corrected over the coming year with a significant pay rise.

While the desire for a big pay cheque is seemingly growing, employers looking to recruit and retain top talent will be better off shifting the focus away from dollars. Research has consistently found that while a low salary creates high job dissatisfaction, a high salary only has a relatively low impact on encouraging high job satisfaction.

A large salary may motivate staff in the short-term, but employers should instead use non-monetary benefits to achieve long-term satisfaction, loyalty, and high performance.

Here are our top tips to take the focus away from dollars with non-monetary benefits:

5 Low-Cost Employee Reward Strategies

1.    Encourage a positive work environment and culture

Instead of offering a high salary, many top employers  instead choose to foster a positive culture (such as US company Zappos.com, #6 on Fortune’s top employers of 2011). When used successfully, the end result is happy, productive employees who are motivated to work for the business’ goals.

Use the business’ mission, vision, and values to provide a framework for the workplace culture and to develop a picture of your desired future. Communicate your vision and values in every internal system and process, and use inexpensive team bonding activities to encourage a positive and social team environment.

2.    Swap salary increases for higher flexibility

In a survey of over 30,000 Australians by News Limited, 40 per cent of workers would be happy to take a pay cut in return for more flexibility in their jobs. The research proved that staff value other types of rewards over cash, voting to sacrifice $5,000-$10,000 a year for more flexibility. By implementing simple and low-cost flexibility measures, businesses can increase staff retention whilst also decreasing salary costs.

3.    Support your staff to develop their career

Another recent survey confirmed that better monetary compensation was not the top priority, with greater opportunity for advancement what employees really wanted most (Source: Right Management). Instead of offering a salary increase, consider how you can support your employees to develop their career and skills. Your business could choose low-cost alternatives to promotions, such as professional development programs, mentoring, or career pathways. By increasing staff skills, your business will also benefit from a widened skill set.

4.    Don’t forget to say thank you

Staff recognition is an undervalued, and often underused, method of motivating high staff satisfaction and performance. With ‘not feeling valued’ a top reason for staff resignations, employee recognition is a non-monetary benefit that costs little, or even nothing.

Start by saying thank you in public and in private, and recognising progress made by your teams and individual staff, both for major accomplishments and small wins. Ensure that staff feel that their achievements are valued, and you’ll find that employees are increasingly motivated to work harder and smarter.

5.    Ask staff what they want

Every employee is likely to be motivated by different things, and it’s important to never assume. Find out what your staff would value as a benefit through one-on-one conversations, group meetings, or even anonymous staff surveys. By asking employees what they want, your business is showing them that their needs are important. Even better, you’ll ensure that every non-monetary benefit that you offer will motivate employees to join, stay, and excel with your business.

By shifting the focus away from dollars, businesses will find that staff costs are far better spent, with increases in employee satisfaction, loyalty, and performance.

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