Money - the wrong measure?
Again and again we report Best of HR – Berufebilder.de® about incentives, salary and fringe benefits as a means of employee retention. But these are really the incentives, the good employees and above all the efficient employees in the company Company hold?
Most corporations and larger mid-sized companies pay their executives generous salaries and bonuses when they reach agreed goals. But it has long been proven that money is not the original incentive!
4 questions about bonus payments
A whole series of company publications, studies and self-tests make it clear that the questions companies should ask managers about their bonus payments are different:
- Do you still get qualified management staff?
- Managers who have a lasting influence on the company?
- People and things are moving?
- Who manage to usher in the turnaround and bring the business on the road to success?
Monetary incentives have served their time
Good leaders want to shape, develop and implement strategies that lead the business as if it were their own. Often there is too much bureaucracy and lengthy coordination processes.
What managers need to "give a face" to their tasks and "walk in the footsteps" is freedom and room for maneuver. Among other things, this has been proven by a study conducted at New York University and the London Business School:
Manager not just on paper: 2 questions for companies
Companies that control their executives less and give them more leeway instead have better managers and better profitability.
On the other hand, the control mania that prevails in many companies results in various problems.
- Qualified executives can now choose which employer to go to; and they go to where they design and find an innovative culture and creative, willing people. A recent example is René Obermann, who, as CEO of Deutsche Telekom, is moving to a smaller cable company in the Netherlands - as reasons he has stated that he wants to "find more contact with the base" again and "move closer to operational business".
- The Germans seem to lose even the desire to assume leadership responsibility. Only 40 percent of men and 33,7 percent of women in Germany are ready to take a leadership position in the company. That, at the very least, was the result of a representative Civey survey conducted by the Initiative Chefsache. For this purpose, 5000 employees and students in Germany were interviewed. Since the beginning of 2018, the Initiative Chefsache investigates German career intentions. At that time, 45,1 percent of men and 37,5 percent of women still wanted to achieve one or more leadership positions during their careers.
Work and live well
Of course, the salary is not irrelevant for top employees; however, it is certainly not a "compensation" as it used to be for overtime and a barely existing private life. Above all, the younger generation understands careers holistically today:
Work is part of life, but it is not exclusive to life. With a high salary alone, these executives can not be recruited. They strive for fun at work, for self-realization, for meaning. In addition, their private lives are important to them: take care of the family including their own parents, take the children to the doctor, spend time with friends.
Increased career opportunities for women
Obviously women especially benefit for this. For them, according to the bosses survey, the conditions in Germany have made a career, improved. 29,3 percent of women say they feel supported in their careers in their careers. The men say that 30,9 percent.
45,3 percent of women said that their employer helps them to work flexibly without any time and space constraints. By the way, also with the men, where the 49,8 percent said. Only 18,7 percent of women in professional life are confronted with prejudice based on their gender.
Executives support: 2 tips for companies
However, despite the improved framework conditions, there is also confidence that they will ever take over a leading position: Only 34,2 percent of women believe that their desire for a leadership position will come true, for the men it is 46,1 percent. Here, it is important for companies to increase their confidence and desire for leadership and to support managers. Specifically, this means:
- to respond to the demands and wishes of their employees and, for example, also to authorize fathers to take parental leave or to grant longer breaks.
- Giving managers a say in cutting-edge decisions - because that's better than any salary increase, bonus, or bonus.
It is necessary to relax the strict rules and soften the supervision. What managers want is to be able to contribute their own ideas and visions, and to be able to implement them, to help shape a company - literally being an "entrepreneur".
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