Whilst the politicians keep talking about clamping down on huge financial incentives in response to the financial crisis, many banks and other corporations contend that large financial incentives are required to attract, engage and retain people.
But as Dan Pink shows us in his recent talk at the TED Talks, pay and financial rewards are not the most effective way to engage and motivate employees. They never were in the past, and certainly won’t be in the future. To engage and motivate people in the future, organisations will need to take a very different strategy.
To motivate people in the 21st century organisations need to focus not on financial rewards but instead on helping employees achieve:
1. Autonomy
2. Mastery
3. Purpose
As usual with Pink, his ideas are based on solid facts and scientific research.
So tell me, is he right? Is what Pink has to say consistent with what motivates you..?
As the public outcry over banking bonus continues, most houses are now in the middle of announcing bonus payments to existing employees.
Bonuses look set to nosedive for the next 12-24months (at the very least) due to depressed earnings through the global recession. But beyond that, the whole way in which the financial services sector (and in particular the Investment Banking arms of those banks) reward their people looks set for radical reform.
But in the meantime, there are still bonuses being paid out this year with JP Morgan topping the list according to some research conducted by eFinancial Careers.
Here are the top 5 ranked houses:
1. JP Morgan
2. Goldman Sachs
3. ‘French Banks’
4. Barclays Capital
5. Bank of America
To read the eFinancial Careers article and see the full listing, click here
“There’s usually a minimum threshold that gets someone to pick a job and stick with it, but beyond that, the things we do are expressions of who we are and what we love and the impact we wish to make, not selfish acts designed to earn a few extra bucks. (No one paid you to read this post, I bet).”
I often get asked questions about my own blog and newsletter -“So why is it free? Where’s the catch..?”
Similarly when I refer candidates to recruiters or pass across business leads to contacts, I sometimes will over hear people say ”That’s good of him - but he is of course getting a financial kick back for it!” – which makes me chuckle as it’s completely untrue.
So you have done all the hard work – found the right opportunity, negotiated and agreed on a salary package and finally managed to get some time with your boss to offer your resignation.
But there is another twist to your job search – your current employer makes a counter-offer.
Whilst it is flattering and a welcome boost to your ego, it can be a little stressful. It’s a nice problem to have – but what do you do?
How do you decide which offer to take up? How do you negotiate the best deal for yourself without coming across as unprofessional or overly materialistic?
Here are a selection of headlines from one newspaper last week:
- ‘Oil price to soar beyond $150 per barrel’
- ‘American Airlines puts surcharge on hand luggage to cope with fuel hikes’
- ‘Basic food prices up 30% on last year’
- ‘UK house prices to fall 7% in 2008’
- ‘Lehman to lose 5% of workforce’
- ‘JP Morgan to cut 8,000 Bear Stearns Jobs Worldwide’
- ‘No more big bonuses for 2 years say banking bosses’
Quite depressing hey?
Your disposable income is falling, the value of your biggest asset (the house) is falling and with various job cuts and hiring freezes you will have fewer resources with which to get the job done this year.
So quite possibly you’re getting less reward and not a huge amount of job satisfaction.
“But that’s financial services” – you might think – “you take the rough with the smooth.”
Well I agree – to an extent. You need to be able to ride the bad times. But every market has its winners and losers. You can still come out a winner in the current market.
All you need are the right strategies and mindset. Here is a 5-step model to help you make more money AND get more job satisfaction.
I received a call today from a Financial Controller who had been invited to a final interview with the UK Finance Director (FD) of a major insurance group.
His question;-
“So what do I ask the Group FD? The rest of the team have answered all my questions and I am completely sold on them. Do I just ask him questions about career progression and what roles he sees opening up for me?”
According to a survey conducted by Here In The City Careers, just over 50% of respondents were satisfied with their bonus.
The Martin Ward Anderson-sponsored ‘Bonus Satisfaction’ survey breaks down the satisfaction levels across front, middle and back office areas as well highlighting the 20 firms with the highest satisfaction ratings.
From my recent conversations with 6 figure earners within the banking sector, a key theme is appearing.
It goes something like this:-
“The financial markets are all over the place and the pressure to deliver is constant. But I am delivering – and having to work much harder and longer to do so…
…But I tell you what – I better get rewarded and acknowledged for it. If I don’t get that salary increase / bonus / that new role next year then I will be furious. I don’t want to change jobs – but I will if I’m not recognised and rewarded.”
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