4 Things Employees Want More Than a Raise

Good finance leaders are vigilant about what employees need — because it really is about making employees better.

So you want to focus on what employees need first, and what employees want second.

You can’t please all the people all the time. But you can succeed at giving employees what they need by focusing on what they want most.

Employees Want Less Than You Might Think

We might think employees want money. Then some more money. And perhaps a bonus on top of that money. So, when you work in finance, you probably cringe thinking the only thing that will satisfy people is greenbacks from your budget.

But there’s good news. One set of researchers found employees are willing to take pay cuts for more meaningful work. In other research, employees want to feel connected to their company and respected for their work.

Bottom line, there are a few things employees would embrace more than a raise — the kinds of things that can increase engagement and prevent turnover.

Here are four of the biggest — and tips on delivering them:

1. Clear Direction

People hate when someone is standing at their shoulder watching their every move.

On the other hand, some managers go so far to avoid micromanaging that they end up offering only vague guidance, leaving employees to guess what’s expected of them. That’s too hands-off. So where’s the balance?

Employees need to know what the job entails and how their work will be judged and credited. That’s the clear direction they are looking for. It always pays to be aware of the difference between telling people what to do, telling people what you expect of them and babysitting them.

2. Strong Communication

Communication is near or at the top of every good manager’s list because it’s the touchstone of successful leadership. After all, what good are the decisions you make and all the insights you have to offer if those things aren’t communicated in ways employees understand?

Good employees want to know the “why,” so remember to tell them. They’ll be motivated to achieve, based on clear goals and good communication, when they understand why they do what they do.

3. Career Development

Nothing will make good employees disengage or jump ship faster than the feeling that they’re spinning their wheels.

Managers can have a unique impact on an employee’s development path, since they have first-hand knowledge of their skills and what they’re particularly suited for.

Not everyone wants the same thing from their work life. Some want to reach a leadership position, others are content to keep doing what they’ve been doing. Once you’ve identified an employee’s goal, you can fall back on these three time-honored management tenets to guide them: meaningful incentives, growing responsibilities and shared success.

4. Skill Development

While career development goes beyond the scope of the employee’s job description, skill development hones in on making employees better at what they’re currently doing.

Skill development can be broken down into three steps:

• Identify the specific skill improvement needs for the employee. One key is to ask the person where he or she feels improvement is needed. Often, they already know. Frontline supervisors are also in a good position to offer insights.
• Link the training needs of each employee to possible learning activities in your organization. That’s where cross-training works so well. On-the-job development opportunities usually provide the best training setting and results.
• Create a clear plan for learning for each employee. For instance, someone might need to improve projections, while another needs to get better with managing Excel.

The bonus is that skill development is an excellent retention tool when it’s linked to career development opportunities. Otherwise, offering skills training may only serve to help employees beef up their resumes to land jobs elsewhere.