Developing People Makes Good Financial Sense

As Economic challenges loom, many organisations are looking for ways to cut costs.  Frustratingly, this is against a backdrop of staffing difficulties causing many organisations to either run short-handed (and lose even more people) or to bust their budgets for advertising, agencies, and the like.

How can organisations handle this?  It's my belief that, more than the ability to recruit, it is the ability to retain quality people that can make or break businesses.

Herzberg's classic theory tells us that people will strive initially to achieve certain "hygiene" needs (working conditions, salary, etc) because they are unhappy without them, but the motivational effect of this soon wears off. We often fail to appreciate that people are only truly motivated by being able to reach for and satisfy factors such as achievement, advancement, and development - these represent a far deeper and longer-lasting level of motivation and fulfilment.

This is critical in helping us to understand why people may stay with an organisation for years when there will always be somebody, somewhere, willing to pay them more.  We must ensure that not only are the hygiene factors met but, crucially, the high level motivators are also present.  

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