Very recently I got a chance to watch a very interesting video to watch in YouTube http://www.youtube.com/watch?v=u6XAPnuFjJc. The video tries to generalize the answer for a predominantly asked question the question “What drives us?” in our work environment. Is it not definitely of interest to the people in Human Resource management of many companies? Yes it is!!!
Contrary to the popular belief the video says that “Better rewards leads to poor performance” but the argument might be true provided the below assumptions are valid
- When we are talk about people who are with rudimentary cognitive skills involved in creating something that is very complex and creative (iPods, iPads, I3 and I7)
- And in work places where “People are paid enough (?)” to take care of their common life style needs (I believe once you have 10 M $, you are not that different from someone who has 100 Million $ as you can get the same car, the same house etc )
Saying the above, I was just trying to reflect whether it makes sense for Services based companies where these days Services become commodity these days and for me the answer is clear NO as
- We into services (commodity) business are here to maximize the productivity / utilization unlike one nice product based company Atlasssian (http://www.atlassian.com/) referred in this video where emphasis is more on creativity and complexity
- Second it is applicable only if people are paid enough (?). The very word enough is very subjective and I believe it may refer to people are studied in Stanford / MIT / Berkley’s and paid in millions (If I get an opportunity to contact the author of the video I would like to understand the “Madurai” example better)
Knowing the fact that it may not applicable to people in Service industry due to above reasons, then where else it makes sense?
It may make a lot of sense to only Creative companies that are involved in solving challenging problems (Product based?) where things like Autonomy, Mastery and Purpose can only motivate people provided they are paid enough. Is it not something that is basic to understand 🙂
The reason behind that is very simple as only in those kinds of companies (ready to invest without worrying for returns) and for those kinds of profiles, money is not important and too much emphasis on profit in that environment only means the lack of like Autonomy, Mastery and Purpose ultimately resulting in losing them
So depending on what you do, who your people are and what they do, plan your HR strategies. Saying that definitely even for people in Services industry too definitely things like Autonomy, Mastery and Purpose are good perks but good “Pay by Performance” is basic to keep them motivated and well utilized 🙂
Share your views …