Today's post comes to us courtesy of board member John Frehse, senior managing director at Ankura Consulting Group.
If you ask any Human Resources professional what they pay their employees, they will respond with a dollar amount. If you ask them how they compensate their employees, they may also include things like medical benefits and paid time off. While salary figures and standard benefits are indeed critical components of compensation, it is important to understand that many other currencies are not only accepted by today's workforce, they are demanded.
“Currencies” are varied and certainly not just limited to financial reward.
A few examples:
Frankly, when discussing culture and employee engagement as a byproduct, money is rarely the key driver. It's other “softer” currencies - like the ones above - that drive positive behaviors, and therefore results.
When a wide range of currencies is not available to the workforce, the demand for cash goes up. In an environment with little or no chance of advancement, recognition, or mentoring, employees will demand larger amounts of the only currency available. And when cash becomes the single driver, morale and performance are traditionally very low. The more employees are starved of a wide range of currencies, the more financial compensation is needed to satisfy them, and this does not translate into better performance.
So, what currency is most important to you as an employee? How well - or poorly - does your organization score when it comes to providing compensation beyond just salary and benefits? Tell me in the comments!
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