Do financial incentives really motivate your team?

Employer advice

It is a common perception within business that money is the key to increasing employee happiness and productivity during work. After all, who doesn't want more money? Recent research carried out by Paymentense, the world's leading merchant service provider, has shot this theory out of the water and revealed what workers truly need to keep them motivated during their 9-5. Flexible working and early finishes on Fridays.

The study which 2,000 full time office workers participated in reported that 2 out of the top 10 office benefits people looked for were financial incentives. The top 5 were:

  • Early finish Fridays 35%
  • Unlimited holiday 35%
  • Bonuses (company wide) 32%
  • Flexible hours 30%
  • Day off for duvet day/birthday holiday/moving house holiday 28%

Now, we can see that bonuses are in the top 3 for a work perk however it is company wide, not individual. This shows that workers want their whole company to be rewarded for working hard in order to achieve an organisation's KPIs. In order for companies to hit their targets managers must listen to their workers and provide day-to-day incentives to increase motivation in the workplace. And with two-thirds of participants providing a work happiness rating of 2/10 and admitted that they would leave a role if a competitor provided a stronger benefits package; organisations cannot afford to rely on financial incentives alone.

The current UK job market is tough. There is a distinct lack of skills which the media has publicised and with the impact of Brexit leaving a UK job application deficit of up to 50% within certain industries, companies now more than ever need to retain their staff whilst attracting the talent they need in order to build a loyal, happy and more importantly, productive workforce. These can be achieved through incentives - as long as they are the right ones.

With 1 in 10 workers stating that they are not offered any work benefits and more than a fifth of those surveyed would drop their salary by 15% to work for a company who offered flexible working and early finish Fridays, it can be inferred that employees are looking for a work/life balance - money no longer makes the modern day workers world go round.

Find out how our consultants can help you become an employer of choice whilst retaining your skilled workforce by contacting your local branch today.