Emotional Salary: The Key To Improving Employee Happiness and Retaining Talent

Times have changed, and in the workplace, one of those changes is the impulse of new generations of workers towards a new way of assessing the compensation that a job can bring them. The salary that employees receive at the end of the month is no longer so important if they do not offer other types of non-financial incentives. It is worthwhile to remain within the company. Is the theme sounding to you? Yes, we are talking about the emotional salary.


But what exactly is the emotional salary? 

Emotional salary is all the non-monetary benefits that a company offers its employees in addition to their monthly wages. That is, getting the job to morally fulfill the employee’s expectations so that he sees a stable future within the company and does not want to change. Today workers are much likely looking for jobs where they can work to live and not live to work. Before generations, we give more value to family and work-life reconciliation than to economic retribution without more. It is for this reason that the emotional salary is one of the fundamental keys to retain talent. But why?


Productivity is no longer based only on the number of hours that an employee dedicates to the company but on the worker’s motivation when carrying out his work. One of the main inspirations is money. However, many prefer a tighter salary in exchange for fewer hours of work and more time for themselves. That is, they prefer emotional motivation. All those little extras that make most work more comfortable and more productive. We are facing a company-employee relationship in which both win. The objective is to avoid pirate employees, who are only in their job because of the economic offer. Sooner or later, they will go to another company because it offers them a better offer.


The six types of emotional salary

So, if you want to retain talent within your company and make your workers feel comfortable doing their jobs, it’s essential to know what types of emotional salary to offer to increase their motivation and commitment to the company.


#1. Opportunities for growth within the company 

Knowing that you can start from the bottom in a company, but with the knowledge that you will have the opportunity to demonstrate that you can occupy other more relevant positions is an extra motivation. Thus, the worker will value a stable future within his job to improve day after day and that this effort is rewarded with new responsibilities.


#2. Personal and professional development 

Allowing the worker to develop both personally and professionally fully will help you build loyalty. An example of professional development is in-company training. The workers want to learn more, expand their knowledge and improve their skills continually. If you help him do it, he will be happier and also more productive.


 #3. Good work environment

A conflict-free work environment in which everyone knows their place is critical for retaining talent. Nobody wants to work in a hostile environment where the work team does not share opinions or suggestions. Encouraging teamwork and developing a company culture is important so that the worker feels comfortable every day that they go to work.


#4. Culture and company values ​​should be consistent with those of the worker 

That’s one of the ways to ensure the membership and permanence of the candidates in the company. Feeling that they are part of something they believe in and, above all, what they agree with. If you have in mind the values ​​and culture of your company at the time of hiring, you have many numbers to incorporate the ideal candidate and that they stay for much longer. To do this, you must know who you want to attract to your company, that is, who is your ideal candidate.


#5. Compatibility of personal and professional life 

Flexible working hours, days off for medical matters, company daycare, vacation days for objectives, and endless options are some of the emotional salaries that will help all your employees live better. Quality of life is a very relevant point when choosing or staying in a job.


#6. Be part of the company’s decisions 

When a company has its workers’ opinions, it makes them feel part of a project in which they are one of the fundamental keys. Ask your employees, encourage them to share proposals and initiatives. Let them see that their voice really matters in company decisions…let them be creative and show their worth. If you don’t let them give free rein to their ideas and carry out their own initiatives, they will go to another company to let them do it.


The way we work and live has changed! So, why do you keep recruiting in the same way?

It is clear that salaries are no longer entirely economic and must be following a proper emotional salary that allows you to retain the best talent within your company. After all the effort you put into attracting and hiring the ideal candidate, you cannot miss it. Therefore, applying these six types of emotional salary will be the basis for forming a motivated and happy team.


Germany: More and More Employees are Dissatisfied

Employees in Germany are increasingly dissatisfied. That’s mainly because the so-called work-life balance is playing an increasingly important role. The shortage of skilled workers is forcing companies to pay tribute to modern times and be more innovative. Many companies can implement some factors for higher work motivation.

Work motivation and job satisfaction

Gone are the days when potential employees signed every toggle contract. The work-life balance is an important factor for the modern generation. Interested parties place high demands on an employer beyond the desired salary.

Which factors influence job satisfaction?

Importance of Job Satisfaction and 4 Tips to Achieve

What is job satisfaction anyway? It is a subjective perception of the employee about his job. This arises from the current situation. Everyone values different factors and has different high demands. That is why it is difficult to say in general when an employee should be satisfied and feel comfortable at work. Factors that influence a positive or negative image of one’s own workplace are:


  • Recognition: A thank you or praise to the right place

  • Compensation: Appropriate, punctual, and negotiable

  • Flexible working hours: flextime or home office with time recording

  • Reconciliation of work and private life: work-life balance, part-time for parents

  • Working atmosphere: friendly cooperation, clear structures, inclusion

  • The difficulty level of the tasks: neither under- nor overburdening tasks, making your own decisions

  • How to get there: Long commutes and expensive train journeys versus job tickets 

  • Career opportunities: advanced training, opportunities for advancement, challenges, responsibility

  • Security: a permanent position, the knowledge to be needed

Satisfied employees work better: their motivation is increased, and they identify with the company more efficiently. Full-time employees spend much of their day at work. If you feel comfortable there, it has an impact on your overall quality of life. It is not only said that money alone does not make you happy. Even a pay rise only motivates for a certain period. A calling, not just a job, has a meaningful effect and satisfies the need for self-realization. Overtime doesn’t have to be a demotivating factor automatically. Employees can even be encouraged with the right approach to plus hours:

Some bonus tips for you

Taking Care of Your Employees Goes Beyond Their Safety | SCORE

Small and quick increases in motivation can easily be incorporated into everyday life:

  • Order a fruit basket for all employees.

  • Offer the opportunity for lunch breaks together.

  • Actively get feedback from employees.

  • Draw a shared vision for all employees.

  • Go out to eat together.

  • Show that the health of your employees is important to you.

What role do work-life balance, career advancement, and employee surveys play?

In our society, the working world no longer plays the first fiddle for many. The younger generations don’t feel like working 12 to 15 hours a day. They also don’t want to bend. They want a job that suits them. It’s doubly difficult for companies. Because especially in times of a shortage of skilled workers, you have to consider how you can bind the right employees to your company at the right time. Little things in everyday life play a role: An office without free coffee and other drinks? Where do you get that? One possibility is also to train the employees themselves in their areas and to develop their potential. For only 17 percent of German employees, there is professional career support in their company. Many employees feel that they are too poorly prepared for the future in their job. But how do employers find out? How should I know if my employees are dissatisfied with the company?

What is the work situation like?

The perception of the manager's health, a chiaroscuro reality? | IMSGeneva

Half of the employees are dissatisfied with their current work situation. After all, more than a third would recommend their own employer to their friends. But it is almost half of the employees who would change their job. One in five is looking for a better-paid position. Eleven percent of employees want more flexible working hours, and 15 percent want more recognition. Companies are challenged to promote the issues of appreciation and internal career planning to retain skilled workers. 

Only 15 percent have a strong emotional bond with their employer!

The 6 Most Familiar 'Bad Boss' Types and What to Do About Them

According to this, only 15 percent of German employees have a high emotional bond with their employer. An emotional bond leads to more commitment and sales. A negative attitude towards the workplace leads to less identification and, therefore, less sense of duty. Work motivation is closely related to the situation on-site. However, this is one of the factors in motivation that managers can change. A higher work motivation increases work performance. 

Group Communication at Work – Part 2

In the previous article on group communication, we discovered the five stages of group development. Today, we shall learn something new: the seven steps to resolve conflict in a work group.

Seven Steps to Resolve Group Conflicts

In simplified terms, a group is when two or more people affiliate and interact to attain the same goals. However, as problems can occur anywhere, these are also inevitable at work and in groups.

The following stages refer to the seven steps required to solve a group conflict as introduced in the book, “Communicating at work: Principles and Practices for Business and the Profession.” by Ronald B. Adler and Jeanne Marquardt Elmhorst.

1. Define the Problem

When a group faces a problem at work, questions may arise, such as, “What to do?” or “How to solve this problem?”

The first step is to actually define the problem. How can someone effectively solve a problem without knowing what the problem is? The group needs to accurately understand the problem so as proper and genuine information can be collected to solve it.

2. Analyse the Problem

The second step now is to analyse the problems faced by members of the group. There is a need to learn more about the issues through critical observation and asking around. Once the research is done and the information reviewed, the causes of the issues have now likely been identified by the group. For instance, some causes of conflict in the workplace include poor management, unfair treatment, poor communication, bullying or improper training.

3. Build Criteria for the Solution

Even if causes have been identified, problems have not yet been solved!

The third step consists of establishing a criterion for the solution where each member of the group will contribute and give a possible solution to the problem. As all members will have different perspectives, different types of solutions will be proposed. In this stage, the group will also consider which next steps to take and what work protocols say about these problems and their solutions.

4. Considering All Possible Solutions

The fourth stage is about putting forth all the solutions provided by the group members and then taking each of them into consideration. The group has to study and examine what the different implications of each solution are.

For instance, for some cases, giving official warnings to the culprits might be enough or if a serious offence was committed, then the Disciplinary Committee might need to be called. Some business organisations might even go to the extent of firing a problematic employee. If the worker refuses to apologize, the case can be taken to arbitration, and the company can hire a lawyer to handle the matter.

5. A Final Choice Has to Be Made

This is the stage where the final solution needs to be decided upon. The decision is usually made after taking into consideration many factors such as the costs and benefits of all solutions provided.

For instance, firing an employee will necessitate interviewing and appointing a replacement. This is not only a time-consuming process, but also involves losing an experienced worker. Besides, the option of hiring a lawyer might cost a lot of money to a company. So, a company might favour issuing an official warning or calling upon the disciplinary committee instead.

6. Implement the Solutions

Now, that the final choice has been made, it is time to adopt it. For instance, an official warning might be given to a worker or the disciplinary committee might decide to suspend an employee for a few months.

7. Follow-Up Procedure

After the implementation of the solutions, there needs to be a thorough follow-up. This will ensure the solution is effective and achieved the desired results, and has hopefully led to better management and communication.

What do you think of these seven steps? Effective or not? Please share your comments!

Group Communication at Work

We are all aware that communication is one of the cornerstones of all business organizations, and that group communication forms an integral part of this framework. But what exactly is group communication, and what role does it play in the success of a business.

In this article, we will explore one of the key foundations of Group Communication in an attempt to better grasp the bigger picture. In layman’s terms, Group Communication is when two or more individuals – either same-level colleagues, inter-departmental associates or even managers and subordinates – come together to work on a business project as a structured group. The first aspect we will look at is, how is this group formed, that is, Group Development.

What is Group Development?

Compared to years ago, today’s workplace is no longer based solely on individual and independent work. Instead, two or more individuals at work come together to achieve a common goal or carry out a specific task. This simple process is called group development and it can occur at several points in a business organisation.

Stages of Group Development

An American researcher called Bruce Tuckman designed a specific model which describes the five stages of the group development process, which are shown below:

1. Forming Stage

The first stage, the forming phase, is where employees join a group and work towards a common objective. This stage is also called the orientation stage by Bruce Tuckman, as this would be the phase where different employees will introduce themselves to each other and act courteously. Pieces of information such as names and positions in the company are exchanged. There is a level of excitement and curiosity to start the project.

In this phase, employees will also establish the purpose of their mission as a group. However, some of the employees might experience the stress of uncertainty as they are unfamiliar with other workers and cannot predict their behaviour as a result. This is known as the Uncertainty Theory.

2. Storming Stage

Now that all employees have come to know each other more and the shy and polite demeanour is gone, they can move on to more serious matters. Here, there is no longer a feeling of excitement and curiosity. Discussions concerning their respective tasks and their objectives will be held.

However, in this storming stage, many conflicts and disagreements can arise. Senior workers in the group might refuse to listen to others’ ideas and impose their own opinions. Employees’ differences will reflect on their perspectives and hence they might not be able to agree with each other. There will be even more chaos when it’s time to select a group leader, with personality clashes and ego affecting the group dynamic. After, most strong personalities will be looking for a chance to prove themselves or carve out some time in the limelight.

3. Norming Stage

The third stage is where everything is finalized. Here, the leader takes his or her role seriously and delegates specific duties to other members of the group. Each member agrees to take responsibility for their assigned tasks. All group members take notes about the different tasks that need to be done and then carry out their respective duties. There is now less division and tension and more collaboration and harmony.

4. Performing Stage

The performing stage depicts the phase where employees are now aware of their positions and fulfil their duties and responsibilities correctly. They work in unity towards their goals and each member performs his or her task with care and attention. There is no longer a need for the leader to supervise the members as they have now reached a stage where they are comfortable and know each other better than in their first meeting. They know each other’s strengths and work towards completing the project. In case they need help, they can now communicate with each other more easily. The employees also respect and value each other’s perspectives and abide to their group leader’s suggestions. Even the leader asks for the others’ ideas before making a decision. In this phase, they all work together to make their project a success and therefore greater productivity is gained from this stage of group development.

5. Adjourning Stage

The final phase, the adjourning stage, occurs when the time has come for the group to disband and work on new projects and form new groups. This is known as the mourning phase as now the employees have grown very close to each other but unfortunately, they must separate. Through this project, they have made new friends and have worked with them closely. However, they now have to go their separate ways, making it a very difficult and heart-breaking phase. However, just before breaking the group, there can be briefings and meetings to discuss their work results. For instance, they can talk about what was missed, why the project was not good enough and what was more successful. In this way, employees will learn from their failure or success. This stage is where members would feel sad and would miss the interactions and even the fights they used to have in the group.

Do you have a better image of group development now? Please share your comments and don’t forget to come back for part 2 where we will learn more about group communication!