The data is in, and apparently the biggest motivator for any type of employee isn’t just their salary, but the level of communication available between management and their subordinates.
Survey finds employees are uninformed
According to the 2014 Global Talent Management and Rewards Study by Towers Watson, only 52 percent of some 32,000 employees surveyed across a variety of industries said that their company does a reasonable job of explaining its compensation plans. Considering that a fundamental understanding of competitive pay and its purpose within a corporation is critical to boosting work ethic and a sales team’s overall morale, the results are far lower than they should be.
Additional findings from the 2014 study include that barely half of employees believe that there is sufficient manpower to get the job done, yet only 27 percent of employees actively ask their manager for assistance in dealing with stress on the job. Plus, it appears that managers are not equipped with the tools they need to properly manage their employees’ career goals: Only 33 percent of employees reported that their managers frequently host career development sessions as an essential part of performance reviews.
“To an employee, understanding what they can accomplish with a company is critical.”
And sadly, this shortfall seems to be nothing new.
In 2013, the Harvard Business Review published a study asking newer managers to rate their dissatisfaction with the career development efforts put forth by their employers on a 1 to 5 scale. The good news? Managers seem to be satisfied with their companies’ ability to develop their employees’ relevant on-the-job skills, and with the frequency of periodic increases in responsibilities.
The biggest areas of dissatisfaction seem to stem from many companies’ lack of personal, formal development of their employees.
In the Harvard Business Review study, young managers were asked what their higher-ups could do to assist their personal job growth, progression within the company and progression of their employees. What was ultimately discovered were that large gaps existed. Essentially, the study found that newer managers were not receiving much formal development training, coaching or mentoring.
Additional highlights of this study can be found via the Harvard Business Review.
So, why does it matter?
To an employee, understanding what they can accomplish in a company is critical to their overall success and performance. If functioning properly, the employer/employee relationship should be mutually beneficial and smooth functioning. However, to achieve well-rounded employee relationships, lines of communication are absolutely necessary – especially when it comes to compensation. Giving employees a fundamental understanding of their company’s basic payment system or rewards program should be core to that company’s culture. Complete understanding is necessary for supporting employee career growth, according to Guidespark.
Managers – even great ones – need support. Bosses have career goals and personal aspirations just like the employees under them. That’s why giving managers the tools they need, and moreover, communicating their specific role in corporate strategies is critical not only to managers’ personal success, but also to the success of their team.
According to Business Know-How, 50 to 80 percent of managers in the U.S. and Canada fail to meet the high expectations of those who promoted them. This is due in part to insufficient training programs for most middle-management, most of which aren’t focused on people skills. Without proper, specific and up-to-date training, managers will waste precious work time trying to figure out how to better manage on their own.
Iconixx incentive and compensation management software simplifies the process for managers to introduce, implement and track compensation strategies to scores of their employees. It also gives company staff the tools needed to understand, plan and track their progress toward their next career goals. Simplify compensation management with Iconixx.