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When praise beats a raise

If you can’t award wage increases to your best workers, there are things they’d rather receive than money — believe it or not
By William J. Lynott
Published: March 13, 2015
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Dishing out raises to your employees may be a scary thought. But even when the budget is too tight to allow the pay hikes you’d like to give, it’s important to understand how a little love can save the day.
 
As far back as 1924, in Western Electric’s “Hawthorne studies,” researchers began to understand that employee behavior is not dependent on money alone—far from it. Job satisfaction and performance often depend heavily on factors that have nothing at all to do with money. Of course, reasonable pay is the foundation of job satisfaction and productivity. However, workers need something more — and nowhere is this more important than in a retail environment.
 
Do you know what motivates your employees to do an honest and productive job for you? On the surface, that would seem to be an easy question to answer. While many employers would confidently suggest that paying a competitive wage is all that you need to know, well-known research over the years has painted quite a different picture.
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