Perception of pay levels most important for staff

Perception of pay levels, rather than the absolute level of pay, is what matters most to employees, a new study has revealed.

According to Booz & Company, achieving heightened performance is the key to improving competitiveness in today's economic environment – therefore, motivating employees to give their best effort on the job remains a fundamental ingredient to sustaining productivity. The global management consulting firm added that if the underlying factors driving employees' performance are not addressed, companies may fail to deliver expected results.

"The principles of employee motivation are rarely consistently applied or properly implemented," said Bahjat El Darwiche, Partner, Booz & Company.

"The key to getting the best from people lies in addressing a set of fundamental 'hygiene factors'. Only when these are sufficiently attended to can the workforce elevate performance."

Hygiene factors are those essential elements that can positively influence individual commitment to deliver standard performance on the job; one of the most important being pay and conditions. It is important that employees receive a level of pay and conditions that they perceive to be fair for their role. Base pay is one of the most tangible ways in which people measure how valued they are by their employer and how they are positioned relative to others.

However, El Darwiche added that organisations can positively influence staff by becoming more competitive, without automatically raising salaries. Employees may be willing to accept a reduced base salary in favour of more flexible working conditions and greater holiday benefits, for example.

Other important hygiene factors include solid management capability.

Worryingly, a recent ORC International report revealed that the public sector has a poor perception of management compared with the private sector.

Job security is also tremendously important as concerns increase stress levels. Individuals perceiving a low level of job security are more likely to find alternative employment in order to achieve greater job stability.

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