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Motivation leading to increased staff efficiency is one of the company's main tasks, and the presence of an operating system can be considered a significant business victory.
Many lances have been broken in the formation of motivation. Some believe that the world has not yet invented a better mechanism for managing employees than material incentives. virtual phone number service Others say that man does not live by bread alone, and there are many effective non-material methods of encouragement.
How motivation theories have changed recently. Photo 1
Both sides are right, a good effect can be achieved by both methods, but under certain conditions. There is no general approach to personnel motivation. A specific market situation, a unique team, specialists of a certain level - all these factors require the development of an individual approach in each specific company.
For example, until recently the payment system of "minimum base rate plus percentage for meeting targets" proved its effectiveness. Today this method is no longer so good. The loss of external stability increases the desire of specialists to have a large fixed part of the salary as a basic security.
The traditional incentive scheme based only on sales volume (or any other single criterion), according to experts, has also become ineffective. On the one hand, sales growth today is good news, but in addition to shipments, it is necessary to pay attention to other tasks that can have a significant impact on profits in the long term. For example, these can be: events aimed at retaining old customers, developing new markets and high-quality work with new customers, reducing accounts receivable and other activities. Motivation based only on sales volume leads to the fact that the manager puts effort where greater income is guaranteed, while other areas "sag". In the future, such an approach can result in problems and losses for the company.
How motivation theories have changed recently. Photo 2
The motivation of the sales department is indicative, since this department is present in almost all areas of business. I would like to mention another belief-delusion that 21st century companies inherited from the uncivilized market of the wild nineties. Let's remember the traditional method of paying managers through percentages of sales.
Thirty years ago, the method was effective, but today it is a non-working model. The question arises: what to replace the outlived method of motivation with?
The disadvantages of this incentive principle are so significant that they cannot be ignored. Often, the coefficient by which the remuneration is calculated is determined intuitively and subjectively, without reference to the company's business processes. It is no secret that the volume of sales and the labor intensity of transactions are not directly dependent. With similar efforts and time expenditures, the financial result can differ significantly. Large transactions can excessively increase the manager's salary, and with small sales, the employee often undeservedly loses in earnings. Seasonal market fluctuations also lead to the fact that the amount of remuneration is unfair.
As a result, salespeople are reluctant to take on small sales and work with new clients, fearing to lose money. Motivation of personnel may be questionable if the sales were prepared not by one salesperson, but by several and with varying degrees of participation.
How motivation theories have changed recently. Photo 3
Unfair wages are bad both in the case of underpayment and overpayment. Unearned amounts destroy any system of material incentives. Underpayments lead to the loss of valuable and qualified workers.
Today, many companies use flexible, tariff-free motivation systems. They can be easily transformed to suit a wide range of tasks, taking into account the state of the labor market in the region, the goals of a particular business, and the organization's personnel policy.
To implement an effective motivation system, it is necessary to know which stimulation methods are most preferable for specialized specialists, how other enterprises in the industry operate, and what the latest labor market trends are. The necessary up-to-date information for developing a personnel motivation system can be collected using labor market research , and even ready-made, practice-tested ideas can be obtained.
Formation of effective motivation creates a close connection between the employee’s income and the efficiency of his/her activities, bringing profit to both the employee and the company.
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