Economic downturns can make for difficult human resource situations. Apathy, reductions in workforce and high turnover can have a far reaching impact that can spiral out of control. Business performance can suffer because employees feel underappreciated and are worried about whether their position will be eliminated, or whether sweeping organizational changes will result in a loss of job status.
Even through economic turmoil, there are two types of factors that influence employee motivation and satisfaction – nonfinancial factors and financial factors. Balancing these factors can be tricky, but there is a science to improving employee morale when weighing factors that motivate employees.
According to a recent study by SHRM, the Society For Human Resource Management, “shows that the percentage of workers seriously considering leaving their organization has risen since the last time the survey was conducted prior to the economic downturn.” Source: SHRM
How can human resource managers utlilize this information?
Nonfinancial factors are very important to employee motivation and engagement. Especially during a down economy and with a organization struggline through financial constraints there are significant ways to impact employee satisfaction. These include:
- Being treated with respect
- Work/life balance
- Type of work
- Quality of co-workers
- Quality of leadership
Financial factors are undoubtably also an important component for employee motivation and engagement. Among the financial factors that employees were motivate by:
- Base pay ranks highest.
- Benefits and incentive pay can be important to
- Other aspects of the employment deal
- Attracting great employees
- Retaining trained employees
- Rewarding employees
Understanding both nonfinancial and financial factors is important for retaining a motivated workforce and retaining high quality talent. During tough economic times, focusing on the nonfinancial factors may compensate in part for the inability to provide the full spectrum of financial factors. Although it may not cure everything, and employee who feels appreciated and who has a great work/life balance may be content to stay at a company regardless of whether they could be more highly compensated elsewhere.
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