Why do people want to work for your company? Do you have a clearly defined answer? Why are the best going to give to your company their all and majority of their waking hours? Monetary compensation only goes so far especially with the younger generation. More and more people want to work for companies with a purpose and culture that aligns with their values while performing work that is fulfilling. In addition to monetary compensation, they are seeking emotional compensation.
Unfortunately, companies without a thought out emotional compensation plan are more likely to extract an emotional tax. When a company is frustrating to work in, people feel it especially A-players and they grow resentful. People leave companies when they are frustrated when they realize marginal dollars don’t compensate for the emotional taxes. When you hire A-players, does their life-cycle with the company follow a similar pattern? Do they join the company engaged but grow distant and surly over time? They likely grow tired of paying emotional taxes.
Alright, Vorobieff, I get it, our company needs to remove the emotional taxes and replace it with emotional compensation. What are the forms of emotional compensation?
It starts with acknowledgment. People want to be acknowledged for their effort and contribution. “But they are paid to do their job.” Acknowledgment doesn’t cost anything. When you acknowledge the good when you point out poor performance they know you see the positive and the negative and it is more likely better received. Many people spend more energy on trying to receive acknowledgment than on achieving material objectives and if your compensation plan focuses solely on money? Your wasting money.
Other parts of emotional compensation include being proactive. Consistently work to identify what processes are working and which are not. If they are paying a frustration tax, working with them to eliminate it is a RAISE. Companies that pay emotional compensation do not force their employees to find competitive offers from other companies to leverage changes in their current positions.
Emotional compensation is a neglected topic. The good news is the IRS has ignored it as well since they can’t easily tax it, yet 😉
But where do you start? Assess whether your company is paying emotional compensation or extracting an emotional tax. The most common form of an emotional tax is frustration working in a dysfunctional business. Lifting a burden is a raise and the first step to unleashing your HumanPower.
To jump start the process, attend the October 24, 2017 workshop in Costa Mesa, Ca.
Newport Beach, Ca