Tuesday, August 26, 2008

Cash is Not King!!!

Today's post is for those managers who think cash is the most powerful motivational tool available.

I do agree that cash compensation is important. It forms the foundation in Maslow's hierarchy of needs pyramid.

However, I think it is significant to note that cash sits at the "base" of the pyramid. It is certainly not king of the pyramid!

Cash alone will never take you to the top of Maslow's pyramid. And that's where you want your employees to be... at the top!

Happy! Satisfied! Engaged! Productive!

So how do you get employees to the top?

I believe managers need to "pull" employees up the pyramid! They need to "lend a hand" and they can do this by practicing "Real Recognition" techniques.

Real Recognition is a concept invented by my friend and colleague Roy Saunderson who is the Founder and President of the Recognition Management Institute. Real Recognition is simple enough, all you have to do is remember to actually practice it. For example, he’s blogged about the steps you should take to recognize employees who work from home. “Even a simple question asked in a P.S. tag line in an email can keep you in touch,” says Roy. This of course does not cost anything, and is a lot more meaningful than a check.

Real recognition, while not the only factor, can help managers pull employees up Maslow's pyramid and take them to a higher place.