Basic Employee Motivation and the Business Owner's Compensation Model

There is a lot of hype out there from self help gurus incomes from time at the employment, role in the
reference to employee motivation. As an entrepreneurorganization, and proximity to the owner. Employees
it's important to recognize that your human resourcesthat feel they are very close to their owner or
can be your most important asset when managed andmanager will feel higher status because of their internal
motivated correctly. With your performancerelationships.
compensation models it's important to identify what3. Power - Power to make decisions based on an
truly motivates your employees. According to Marshallemployee's education, skill, and experience can be one
Goldsmith in his book "What Got You Here Won't Getof the strongest motivators. Delegation of power is
You There" he identifies four ultimate motivators forimportant however checks and balances are critical
employees in the work place.for success in your business.
1. Money - Money always needs to be a motivation to4. Popularity - Popularity is a surprisingly strong
retain employment and accelerate in the work place. Ifmotivator in the work place. All people value popularity;
employees aren't compensated enough to live they willthe question is how much the value their individual
leave their employer in search of another position. Ifpopularity.
the staff is compensated too much they will becomeIt's crucial to remember each motivation principle when
complacent and lack motivation to achieve new levelsdesigning a compensation plan. No individual is truly
of performance.motivated by one principal; however one principle will
2. Status - In a smaller business status traditionallybe a greater motivator to each individual employee.