Monetary incentive program does not work

The third reason Gregory (2007) has identified as a reason why people leave their job is related to their relationship with their manager. This is, predictably, also one of the most important reasons why people stay in the same organisation. Seven out of ten people leave their job because of their manger (Martin 2004). This goes back to the importance of effective management in companies, both in satisfying hygiene factors that cause dissatisfaction, and through influencing the factors that cause motivation.

A professional management team, supported by training, can ensure a happy and motivated workforce and hence give a better performance. (Powers, 2007). A way of achieving this could be by taking them under your wing, coaching them and helping them develop in the workplace and as individuals. "… talented people no longer want a "boss" at work. They want a coach. They want someone that sets clear expectations, teaches them how to get and stay on track, and helps them master the competencies that will make them more successful" (Martin, 2004).

She goes on to say this is probably one of the best methods of retention. A motivated workforce that is giving its all and doing it proudly, happy that they have the job that they do. Some may argue that you can't pay for what you get out of a motivated employee hence the management skills employed are so valuable, they will give the organization something money can't buy and in return make it profitable. There will be a number of people that believe that the only way to retain talented staff is to give them more money and/or a large number of bonuses at the end of the year.

This might be true, and surveys will show that offering more money might keep the staff longer. In the city of London, where Commerzbank operate, bonuses are a way of life. Because they are so ubiquitous, we argue that they are more of a hygiene factor for the staff working in the City and do little to retain staff in a positive way, and always has the danger of becoming a demotivator if the reality of the scale of the bonus does not reflect the reality (as illustrated by expectancy theory).

Whilst we do not recommend removing bonuses (which would be a severe demotivator, as is any pay decrease) we believe that it is the inherent job interest and the management skills that act in this situation as a powerful retention force. It is a fact that when people leave their job it's more likely to do with lack of personnel skills by senior management and the lack of job satisfaction. More money might keep them there for a period but it won't guarantee that in a year or two the same thing won't happen.

It's important that there is a balance where the employee is receiving the right pay and the work environment is right. People spend on average 1920 hours a year in their place of work; it's very important that they are comfortable and they are in a place where they can develop skills, grow and learn. This will be, in the long run, an investment for the organization. People are the main resource and happy people work better together bringing the organization to its peak.