Money alone is not the key to happiness. A study by the Fraunhofer Institute for Industrial Engineering (IAO) in Stuttgart showed that company employees rarely give their all just for their basic salary and it requires a little more commitment on the part of the company to unlock their hidden reserves of energy. In this context, non-material incentives are often more effective than money.

Of the 100 companies questioned, only 21 % said that they concentrated on financial rewards above all else. 61 % on the other hand looked more to non-material rewards.

Depending on the company, these can take the form of coaching sessions, further training, flexible working hours or simply praise from superiors. Of course careful consideration must be given to whom the incentives are aimed at. A production-line employee, for instance, would surely be far happier with a fat bonus than a seminar on work-life balance.

1. Take an individual approach to motivating your staff
Instead of announcing blanket rewards that are unlikely to inspire anyone greatly, each company should think hard about how they can really target their staff effectively.

For an office worker with a family, for example, flexible working hours with the possibility of working from home are more valuable than money. Only those who take the trouble to find out what their staff really want can bring about a level of contentment that results in increased productivity and increased commitment.

2. Motivation through good working conditions 
When 2,134 employees from 33 companies were questioned by the University of St. Gallen and the Bonn-based management consultants Deep White, the results showed that motivation and self-fulfillment considerably increase individuals’ efficiency. But anyone who thinks that these sort of ideal circumstances are the norm is unfortunately mistaken: only 6 % of those questioned described their working conditions as very good. 

3. Motivation through a positive corporate culture
Most companies are shaped by power struggles, hierarchies and a poor culture of conflict management and communication. Indeed many use the ‘stick’ rather than the ‘carrot’ in the pursuit of business success. However most of them are fully aware that corporate culture is an important strategic factor for success. Investing in it now will pay dividends in the future but only if the methods of staff motivation are likewise well thought-out and tailored to the individual employees. 

Source
Fachverlag für Recht und Führung
Theodor-Heuss-Str. 4
53095 Bonn
Phone 0228/9 55 01 30
Fax 0228/35 97 10
www.vorgesetzter.de