by Irina Diaconescu

Created on: January 16, 2011

I have worked in various leadership positions over the past several years. My main experience has been in call centers, or contact centers, meaning I’ve had to struggle with turnover at one point or another, since call centers are notorious for exceptionally high turnover rates. And what I’ve noticed is that turnover is not necessarily related to pay. Neither is performance. What I’ve found over the years is that employees will work harder for individuals and for companies that fully carry out their vision, not necessarily for higher compensation.

I’ve worked for companies in the same industry, offering the exact same services but having a difference in employee compensation of about $3.50 an hour. That is a big wage difference, for doing literally the same job. What I found is that performance, or lack thereof, was very similar for both organizations, which leads me to believe that employees do not work more if they get paid more. They work more, are more efficient, effective and committed if they have solid leadership and if they feel like they are making a contribution.

It seems that organizations nowadays are under the impression that if they offer their employees a solid salary they can use and abuse them however they see fit. While it is expected that certain high-paying positions have more responsibilities and those holding such positions are expected to work harder, the majority of companies have adopted a culture that sends a message saying “I’m paying you good money. You should work as hard as I ask you to.” What companies often lose sight of is that people don’t under-perform and leave companies. They under-perform and leave Supervisors.

Often times, organizations don’t care, or simply forget to make their employees feel appreciated. High performance is overlooked, rewards are few and far in between, and leadership is virtually non-existent. People in leadership positions are under the assumption that if the employee receives good pay and they are being managed, then they will perform to their full potential. This is absolutely not true, because there is a huge difference between managing people and leading people. If an employee does not feel like they matter, if they are not lead to believe they are making a difference, if they are not treated like a human being and appreciated for their contributions, they will under-perform no matter what their salary is.

We spend more time at work than we do with family and friends. Yes, people have to wake up every morning and go to work so that they can pay their bills. But that does not necessarily mean they will perform to their full potential simply because the dollar signs they see on their paychecks. We have evolved as a society, and organizations need to develop cultures and work environments that are welcoming, inspiring, motivational and rewarding. Those are the true factors that will trigger employees to work harder, more effectively and more efficiently. It’s not always about money.

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