Fri, June 11, 2010 - 3:45:17

They Say “Money Talks,” But NICE Gets the Best Results

We’ve all heard the old expression, “Money talks,” but a recent survey conducted by McKinsey has revealed some rather unexpected findings—particularly in our tough economic times.  It seems that although financial incentives help motivate employees, the best motivators appeal to the emotions instead.

According to the study, 60 per cent of respondents rated performance-based cash bonuses as “effective” or “extremely effective,” but praise and recognition from an immediate manager was called “effective” or “extremely effective” by an even greater percentage of 67 per cent.  What’s more, respondents found all emotionally-based motivators—with other options including attention from leaders and opportunities for increased leadership—to be more effective than financial ones.

In other words, money still “talks” but NICE gets the best results. But based on the survey responses, many managers have yet to discover the power NICE has to enhance their employee’s performance and increase their company’s bottom line. When asked to assess the frequency with which their employers used such techniques, financial motivators like cash bonuses and raises reigned supreme.

With McKinsey’s newly released findings in mind, now is the perfect time for managers to take a second look at their current office culture and realize that NICE isn’t just a feel-good philosophy, it’s a sound business strategy—one that can boost employee morale, heighten productivity, and save companies money. The key is for leaders to stop thinking solely in terms of dollar signs and realize that sometimes the unquantifiable is just as important. For leaders looking to expand their company’s reach well into the 21st century and compete successfully within the global marketplace, emotional intelligence will be just as important as the rational kind.

So, whether you’re a CEO or a mid-level manager, take the time to communicate with your employees and let them know you appreciate their hard work.  By simply making your employees feel like they are truly valued, you can add real value to your company.

Posted by Linda and Robin