Satisfiers and Dissatisfiers

A few years ago, when I had to decide on whether and how much health insurance should we get for our employees, I asked a colleague whether she prefers health insurance or a hundred dollars in cash, her reply was CASH !

When I told her that her opinion may change if God forbid she is hospitalized or some illness strikes her, she said she didn’t expect something like that to happen to her. (Frankly, in my younger days, I also thought that all these things happen only to others and I am going to live healthy and happy forever).

I immediately remembered a lesson we learned while doing a course in management. There are some forms of compensation or employee gratifications that are satisfiers and there are some that are dissatisfiers. Satisfiers are literally those forms of remuneration that satisfy an employee. Dissatisfiers are those which fail to satisfy, no matter what the quantum. However, without dissatisfiers, no one will work with you or for you.

Respect from the boss and colleagues, a good working place and environment, the pride of working for a reputable firm and therefore a sparkling resume are great satisfiers.

Bonus, salary increases, incentives and perks like cars, children’s education etc. are all dissatisfiers. No matter how much you have, you will never be satisfied and always expect more.
Not surprisingly, all dissatisfiers are directly related to CASH.

How then does a senior manager or employer strike a balance between satisfier and dissatisfiers so that one can retain talent ?

My solution lies in COMMUNICATION. Simple transparent, logical and straightforward communication. Tell your people what they are getting and for what. Show them their cost to the company and relate that to their productivity. Inform that the two are directly related and if productivity is down, so will be their remunertation.

In addition, do be humane, generous and think about the long term potential of your colleague.

There are no sure shot solutions to management issues and problems. Nothing totally black and nothing totally white. A few grey areas will be there.

That is why the world needs managers !