Like most companies at the end of the year your organization announced salary changes, issuing merit raises to some, and generally recalculated overall compensation to ensure you remain competitive.
But can you actually use money to motivate and retain your employees? A study by Willis Towers Watson found that only 20% of employers in North America actually believe merit pay is effective in driving high performance.
Traditionally money was seen as the main incentive used to motivate employees. Higher productivity results in higher salaries and bonuses. For companies, it’s been used as the main tool to attract, retain and engage their people. Today we’ve learned that the key to motivation is much more complex than that.
