“Mehmet, I have problems with my employees,” said my client. In a short time he had expanded his business to higher levels. When he started to go into the details of his business, I understood that his problem stemmed from his salary system. The salary system was based on performance, and whoever was more efficient received a higher income. However, they did not understand him.
Well, I think that he did not understand the behavior of his employees and why their efficiency did not increase when they had the possibility of earning more.
In his book Drive Daniel H. Pink shares with his readers the outcomes he draws from the researches on the subject of what motivates people. In the book he also talks about a research made by LSE (London School of Economics) in 2009. A summary of the research: “On both sides of the Atlantic, the gap between what science is learning and what business is doing is wide.” As an example we can cite from the book, “We find that financial incentives [...] can result in a negative impact on overall performance.”
Like in all our projects, we discussed with this client the problems which could be solved before we started to look for an acquirer for the company shares. We found out that due to the rapid growth of the company some of the employees, instead of doing their own jobs, had to work on chores which they did not really enjoy. Once the processes were changed, efficiency increased in a short time.
If you would like to receive more information on Daniel H. Pink’s book Drive or to buy it, please click here.
The oldie of the week: Cyndi Lauper – Girls Just Want To Have Fun (1983)