Salary Increases and Employee Motivation | SVM Global

Motivation for salary increase

Motivation / October 12, 2022

Employee motivation is a subject close to my heart. I believe it’s the single most important factor that fuels an organization’s growth story. When you look at a successful brand, what you see is the fiercely competitive spirit that comes across through its product innovation and sustained efforts to reach out to more customers through some astute marketing.

What you will not see is how the brand has seamlessly woven the threads of employee motivation into its corporate culture. Companies consistently posting profits know how to keep their employees happy and motivated.

But motivating employees isn’t easy. It is a fairly complex task and there are times when even the most well-planned strategy fails to deliver the results you are looking for.

I’ve already talked about some unorthodox tactics that entrepreneurs can use to motivate employees. Now, I want to delve into what is seen by employers as a foolproof method that never fails to motivate employees - the "salary raise.''

So, here’s my question – “Does money really motivate employees or are we overestimating its importance?”

On the face of it, there seems to be only one answer to this question - “Yes, it motivates employees and its importance cannot be overestimated enough.”

No brainer, right? But dig a little deeper and doubts begin to surface.

A tenuous bond

Even if there is a link between employee motivation and a salary raise, it is shaky at best. Think about it. The happiness linked to a pay raise wears off quickly. At best, it will have a passing impact on motivation. It’s common human tendency to want more, especially when it comes to salary. The raise you are offering an employee might never be enough. Dissatisfaction with the raise might begin to creep in quickly. That can hinder motivation and performance.

There is a long time between pay raises

A salary uptick typically happens once a year, which means employees have to wait for a very long time between one salary appraisal and the next. Yes, your employees will be ecstatic with their salary hike but to think this state of affairs will continue till the next hike is stretching things a bit.

This means you can’t depend on a pay raise alone to motivate your employees. It’s just one of the tactics that ensures the people who work for you aren’t dissatisfied with their jobs.

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