Not taking into account the stages of company development
Posted: Sat Feb 01, 2025 10:54 am
Mistakes in material motivation of personnel can have a serious impact on the success of the company. One such case was the situation in an organization specializing in the sale of expensive furniture made of natural wood. At the initial stages of the company's development, managers received their salaries in the form of a fixed salary and a percentage of sales. This allowed them to have good compensation, despite the difficulties in promoting expensive furniture.
Over time, the company built a loyal customer base and achieved stability in sales. However, the system of effective material motivation for managers remained unchanged, which led to problems. Employees had no incentive to grow and develop the company, since their income was tied to a percentage of sales. This led to a loss of interest in work and a decrease in professional motivation.
The company's management eventually realized its mistake and decided to cancel the bonuses. However, this also led to the departure of valuable employees who no longer saw an incentive to work.
To avoid such mistakes in bangladesh email list material motivation of personnel, it is necessary to adapt the remuneration system to the current situation of the company. For example, at the initial stages, when it is necessary to attract clients, a program with a high percentage of sales can be used. However, when stability is achieved and a loyal client base is formed, the payment system should be reviewed in the direction of increasing the fixed part of the salary and reducing bonuses.
This approach will help maintain employee motivation at all stages of the company’s development and avoid negative consequences associated with errors in the staff incentive program.
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Implement a motivation system without taking into account the financial condition of the enterprise
The head of a travel agency decided to reward his employees with additional bonuses, but an unfortunate coincidence with paying taxes on land for construction and paying off a bank loan for land lease led to him having to temporarily abandon this idea. This also forced him to postpone paying the staff's salaries. As a result, only one employee and the head himself remained in the company.
Accounting for the financial condition of the enterprise
This situation serves as a lesson in the importance of planning motivational events for employees. If a manager decides to reward his employees with bonuses, he should first consult with the financial director. This will make sure that the company has sufficient financial resources. In case of limited financial resources, it is better to work with the HR manager to prepare a system of non-material motivation of labor.
Over time, the company built a loyal customer base and achieved stability in sales. However, the system of effective material motivation for managers remained unchanged, which led to problems. Employees had no incentive to grow and develop the company, since their income was tied to a percentage of sales. This led to a loss of interest in work and a decrease in professional motivation.
The company's management eventually realized its mistake and decided to cancel the bonuses. However, this also led to the departure of valuable employees who no longer saw an incentive to work.
To avoid such mistakes in bangladesh email list material motivation of personnel, it is necessary to adapt the remuneration system to the current situation of the company. For example, at the initial stages, when it is necessary to attract clients, a program with a high percentage of sales can be used. However, when stability is achieved and a loyal client base is formed, the payment system should be reviewed in the direction of increasing the fixed part of the salary and reducing bonuses.
This approach will help maintain employee motivation at all stages of the company’s development and avoid negative consequences associated with errors in the staff incentive program.
Read also!
"Marketing Tips: How to Show That Your Product is the Best"
Read more
Implement a motivation system without taking into account the financial condition of the enterprise
The head of a travel agency decided to reward his employees with additional bonuses, but an unfortunate coincidence with paying taxes on land for construction and paying off a bank loan for land lease led to him having to temporarily abandon this idea. This also forced him to postpone paying the staff's salaries. As a result, only one employee and the head himself remained in the company.
Accounting for the financial condition of the enterprise
This situation serves as a lesson in the importance of planning motivational events for employees. If a manager decides to reward his employees with bonuses, he should first consult with the financial director. This will make sure that the company has sufficient financial resources. In case of limited financial resources, it is better to work with the HR manager to prepare a system of non-material motivation of labor.