Money no longer main staff motivator, expert claims

Date: 6th October 2010

Small business owners operating in the UK could be among those interested to learn that money is no longer the key motivator for staff retention.

That is according to the Chartered Management Institute (CMI), which said flexible working and development opportunities are now more sought after.

Mike Petrook, a spokesperson for the CMI, said that businesses need to realise that offering a pay rise is not always the best course of action.

"Given the current climate, it's time that businesses grew up a little bit; they cannot think – and indeed many don't, now – that it is OK to reward people with pay rise after pay rise," he commented.

The expert claimed that it is "critical" that businesses recognise the need to engage with their staff.

"What employers must do is concentrate on building remuneration packages that incorporate the earnings – the take-home pay – with things like development opportunities and flexible approaches to work," he added.

Posted by Jacob Williams