Monetary compensation is the most powerful stimulus for improving employee productivity.
Employee Productivity is one of the vital factors that directly contributes to the success of an organization. Maintaining high employee productivity and taking new steps to boost it constantly helps an organization to innovate and handle today's challenges.I disagree that monetary compensation is the most powerful stimulus required to improve employee productivity. An amicable work environment and transparent policies will better help an organization to improve employee productivity.
First, it is important that an amicable envionment is maintained that allows employees to feel at home and express ideas freely by interacting with other fellow employees. This keeps employee morale at a high level and gets the best out of them. For example, Google has an open work culture where they don't believe in an organizational hierarchy and maintain a flat structure. Employees can interact directly with the higer management which makes them feel like they are an integral part of the organization. This results in a tremendous improvement in employee productivity and organization's growth. Sometimes, employees stay late to finish their work during times of tight deadlines without any formal request. Such a situation is possible only because of the work environment that Google provides to its employees.
Second, an organization has to ensure that its policies are transparent and all employees are treated equally. For example, Infosys, well known for its fair and transparent polcies, once imposed a fine on the CEO for selling his stock without prior notice. This clearly sent out a message that company treats all employees equally and policies apply to everyone and not just a specific section of employees. Infosys also has a policy of promoting its own employees to higher managerial positions providing necessary training instead of hiring from outside if qualified people who can be promoted are available. This provides a direct drive for the employees to work harder, thereby increasing the productivity.
However, promoting an active work environment and maintaining transparent polcies alone cannot improve employee productivity. At the end of the day, employees have a family to support and compensation matters to an extent. Companies should ensure that employees are compensated according to the skills they possess and at par with
current market levels. A small deviation doesn't matter as it can be compensated by the other two factors stated above. However, if there is a significant difference, employees lose focus on the job , thereby directly impacting the productivity.
In conclusion, we can summarize that an amicable work environment and transparent polcies are key factors that govern employee productivity. There are other factors that supplement it, including monetary compensation. The organization must ensure that the main factors are addressed in the best way possible and supplementary factors are addressed to a satisfactory level to improve and maintain employee productivity at high levels.
Employee Productivity is one of the vital factors that directly contributes to the success of an organization. Maintaining high employee productivity and taking new steps to boost it constantly helps an organization to innovate and handle today's challenges.I disagree that monetary compensation is the most powerful stimulus required to improve employee productivity. An amicable work environment and transparent policies will better help an organization to improve employee productivity.
First, it is important that an amicable envionment is maintained that allows employees to feel at home and express ideas freely by interacting with other fellow employees. This keeps employee morale at a high level and gets the best out of them. For example, Google has an open work culture where they don't believe in an organizational hierarchy and maintain a flat structure. Employees can interact directly with the higer management which makes them feel like they are an integral part of the organization. This results in a tremendous improvement in employee productivity and organization's growth. Sometimes, employees stay late to finish their work during times of tight deadlines without any formal request. Such a situation is possible only because of the work environment that Google provides to its employees.
Second, an organization has to ensure that its policies are transparent and all employees are treated equally. For example, Infosys, well known for its fair and transparent polcies, once imposed a fine on the CEO for selling his stock without prior notice. This clearly sent out a message that company treats all employees equally and policies apply to everyone and not just a specific section of employees. Infosys also has a policy of promoting its own employees to higher managerial positions providing necessary training instead of hiring from outside if qualified people who can be promoted are available. This provides a direct drive for the employees to work harder, thereby increasing the productivity.
However, promoting an active work environment and maintaining transparent polcies alone cannot improve employee productivity. At the end of the day, employees have a family to support and compensation matters to an extent. Companies should ensure that employees are compensated according to the skills they possess and at par with
current market levels. A small deviation doesn't matter as it can be compensated by the other two factors stated above. However, if there is a significant difference, employees lose focus on the job , thereby directly impacting the productivity.
In conclusion, we can summarize that an amicable work environment and transparent polcies are key factors that govern employee productivity. There are other factors that supplement it, including monetary compensation. The organization must ensure that the main factors are addressed in the best way possible and supplementary factors are addressed to a satisfactory level to improve and maintain employee productivity at high levels.
