Does driving performance mean a pay rise?

Often when you see a dip in your top employee’s performance, the fallback position might be that a pay rise will resolve the issue. However, realistically, whilst pay is the primary reason why employees come to work, there are a number of other reasons which act as motivators. In Maslow’s hierarchy of personal needs, Maslow identified that there were a number of reasons why people come to work and that pay is only one of the reasons why employees work for you.


As an employer, there are 3 basic principles that you can apply to get the best out of your staff and the only thing that this will cost you is time. This could be time very well spent if it results in a 10% improvement in performance and/or revenue and you keep your best employees.


Tip 1 – Objectives – Make sure that your employees have clearly defined objectives which set out what they need to achieve over the next 3-6 months. Make sure that they are SMART objectives:

Stated – Clearly state what the objective is
Measured – Includes a quantitative and/or qualitative measure
Agreed by the manager and the employee
Realistic – The employee has the skills and resources around them to
enable them to achieve the objective.
Timebound – With a clear end date or timescale


Tip 2 – Communication – Have regular performance review discussions with your employees on a one on one basis. You may have formal performance reviews on a quarterly, bi-annual or annual basis, but make sure that you also incorporate monthly informal review sessions to encourage a free flow of communication between you and the employee and to enable them and you to highlight any potential pitfalls or issues at a very early stage which may hinder the employee’s ability to achieve their objectives.


Tip 3 – Recognise Good Performance – This doesn’t have to cost you anything. A simple “thank you”, a “well done” or a “keep up the good work” can pay dividends.


If you apply these basic principles, it could be the difference between an underperformance discussion, one of your highest performing employees leaving and a more motivated and higher performing team where you and your clients reap the benefits as well as the employees


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