A blog about reputation, marketing and employee morale.

$0.20 Employee Raise Yields Results

Posted by Janet Smith on April 14, 2008

When it comes to the morale of your employees, it’s not all about the paycheck. Research proves this over and over again. But there’s nothing like a real life story to bring it into focus.

A gentleman I met recently told me he once held a management position for a company in New York City. He said he increased morale by giving his employees MetroCards that gave them some free bus and/or subway rides. He said, “They loved the cards—and what I paid for them equaled a raise of about 20 cents an hour per employee. If I had offered my employees a raise that small, they would have been outraged. And if I had offered them a $2 an hour raise, and had taken away the subway card, they would have been furious!”

This smart man realized that the MetroCards made his employees feel valued, because he took the time to think about them as people. He wanted to show appreciation, and went out his way to give them something that made their lives a bit easier or more convenient. An extra $8 a week added to their paychecks just wouldn’t have had the same impact.

When employee morale is low, the reputation of your organization takes a serious hit, and your bottom line suffers. Of course, MetroCards alone won’t increase employee morale. But you’ll take a significant step in that direction by considering what’s meaningful to your employees when you show appreciation.

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