Of course, you should pay employees well. Money may not be a good motivator but it can certainly be a treacherous turn off. Decades ago, Professor Frederick Herzberg, identified pay as a dissatisfier. For example:
“Surveys say that pay is not a motivator. Why are you upset?”
“Because you told me I was a good hand but my merit increase average.”
“I like your product but I can’t join your company.”
“Your pay scale is about fifteen percent below the market.”
Laszlo Bock, of Google, Inc., agrees that you should pay well but put the focus on celebrating accomplishments.
For example, a supervisor promised her team pizza after work for completing a project. A superintendent created a watermelon party for achieving a performance metric.
Managers, after a good year, organized a steak dinner for employees. One manager asked his group if they would like anything special. “Yes,” said an employee, “we like for the management team to serve the steaks.” They did. All had a good time.
The manager of a service department organized a pancake and sausage breakfast for improved customer service scores. Think celebratory events, concert tickets, VIP parking, free books and seminars, and of course hand written notes.