Top Executives: Nonmonetary Motivators Keep Employees From ‘Jumping Ship’

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<strong>Los Angeles &mdash; March 25</strong><br />Today&#39;s economic slowdown is most definitely taxing the average worker&#39;s wallet. But at many companies nationwide, employees aren&#39;t crying, "Show me the money!" and jumping ship if they don&#39;t get a raise. That&#39;s because money isn&#39;t the "end all, be all" when it comes to employee loyalty and retention, according to the 2008 Management Action Programs Inc. (MAP) Quarterly CEO Survey conducted by Vantage Research. <br /><br />Open communication, employee recognition and involving personnel in decision making are what people value most in a company. That&#39;s why many CEOs will be improving these fundamental business practices, rather than just giving people raises during the next few months, the survey indicates.<br /><br />"This latest MAP survey shows that the No. 1 business practice &mdash; open communication between management and employees &mdash; was mentioned nearly twice as frequently as receiving raises," said Allan Hauptfeld, principal of Vantage Research & Consulting in Valencia, Calif. "Clearly, a work environment where employees are recognized as part of the team is more valuable than simply receiving a paycheck."<br /><br />Lee Froschheiser, president and CEO of MAP, a veteran business-consulting firm that has accelerated sustained growth for more than 13,000 companies and 160,000 executives since 1960, said the MAP survey results confirm that savvy business leaders realize the enormous value of motivating employees in nonmonetary ways.<br /><br />"Sure, financial reward is important, but the CEOs we interviewed are choosing to motivate first through other key fundamental strategies," Froschheiser said. "For example, creating a workplace culture that recognizes employees for their professional contribution helps keep &#39;A&#39; players from jumping ship. Personal growth is another huge motivator for staffers seeking more of a security blanket. Providing a clear career path for your workers, including clearly defined steps for advancement, also pays big dividends in terms of retaining talented employees. Most of all, clearly communicating the company&#39;s vision and mission, as well as making employees feel they&#39;re playing an important role in the business&#39; overall success are among these CEO&#39;s top employee-retention strategies."<br /><br />In addition, the survey uncovered other newsworthy topics, including:<br /><br /><ul><li>The three greatest challenges CEOs are facing in business today: revenue growth, hiring talented employees and cost containment.</li><li>The people behind a product are about as important as the product itself. Customers are only slightly more loyal to a company&#39;s products and services than they are to its employees.</li><li>"Cost" isn&#39;t driving customer loyalty, even in tough economic times. To attract and retain customers, many CEOs won&#39;t slash prices, but will increase service and product quality and personal customer experiences instead.</li></ul>

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