How engaging is money?

Many still believe that pay is the primary reason employees leave their jobs. This is a common misconception that mainly comes from the fact that when people do leave, they usually go to a higher-paid position. In exit interviews it is easier to identify that reasons for leaving are for more money or career opportunities. However, many staff on big salaries are unhappy, while staff earning a lot less can be very happy and engaged.

Financial packages can attract employees to a role, but not sustain their engagement. Interestingly, 89% of managers believe that employees leave for more money, whereas 88% of employees really leave for reasons other than money. In reality only 12 per cent of employees do leave due to financial reasons, mostly because they need to pay the extra bills. (Source: Saratoga Institute Research).

The truth is, employee engagement is determined far more by management practices than any other. "More than 70,000 exit interviews have proved that the principal reason people leave a company voluntarily is the behavior of their supervisors." (Source: Jac Fitz-Enz, The ROI of Human Capital)

Talented people want to be measured and rewarded for their successes
Many other reasons employees leave are because they feel devalued by the fact that pay is not linked to performance, or they have no idea how pay rises are determined. These reasons have more to do with management than just the size of the paycheck.

Most employees just want to be remunerated fairly compared to others in a similar field and situation. Access some pay scales to make sure you are paying market standards at least.

But more than that, employees in best practice organisations feel that:

• They are paid fairly for their contribution to the organisation's success
• Their performance has an impact on their pay
• They share in the financial success of the business

Remember this mantra:
What is important gets measured
What gets measured gets done
What gets done gets rewarded and
What gets rewarded is important