Pay Is Not As Important As You May Think

Salary is important for any employee but it may not be as important as you might think. According to Carol Kulik, recognition and the opportunity to do interesting work rate higher than having a big pay.

Kulik said that while a salary increase can make workers happy, this is not the only reason why they stay in a company. Kulik is a research professor from the University of South Australia.

The academician explains that an employee doesn’t think of his salary if something bad happens during a workday. Kulik said no one looks at his pay cheque and tell himself that it’s okay. She added that the thrill of getting a pay raise disappears after one gets it.

Kulik said it’s more important for companies to pay attention to the day-to-day motivations. A simple gesture like treating staff to lunch after a successful project has more value than giving a raise six months after.

While a raise or a favorable performance evaluation is appreciated, small gestures like a thank-you note or a special lunch provide a more personal touch.

Kulik also said that as long as an employee is receiving fair compensation, he is unlikely to leave a job because of his salary.

The tough economic times, indeed, have forced large corporations to consider or implement salary freeze. Kulik said that companies should look at this as an opportunity to strengthen its workforce.

She added that managers should never overestimate the value of empowering and motivating employees not by looking at salaries but at things that drive them.