Is Money Enough to Motivate Employees?

 

As an employer, you pay employees for the work that they do for you. There is an employment contract concluded between you and your employees. The contract may be written but it can also be oral. It is preferable that there is a written one.

This document is usually referred to as an appointment letter.

An employment contract states all the terms and conditions of employment. These govern the relationship between employer and employee. An employee knows how much he is being paid, the hours of work, transfer, what happens if he fails to perform his job or does something something wrong and so on.

Money is one of the factors that can motivate people. A job seeker dreams of getting a job that pays well. Salary is important to workers as well as employers. People want to be paid more but not many employers can pay high salary.

It has been said that money has a limit as a motivator. So employers need to be creative. You can offer employees a choice between a number of benefits. Some people refer to this as 'cafeteria benefits'. Employees can choose benefits that suit their needs. This is more effective in motivating employees than merely paying them money.

So provide both monetary and non-monetary compensation to your workers.