Career Advice >> Browse Articles >> Management


How to Motivate Employees on a Budget

How to Motivate Employees on a Budget

Liz Ryan / BusinessWeek

Sometimes, one size fits all

One excellent manager I know said to his team as a group, “Look, our raise budget is 2.5%. Given such a small allotment, I’m not going to slice and dice and give one person 2.565% and another 2.275. I’m giving everyone in my group the same 2.5% because I only keep top performers in my group and I don’t believe those extra sixteenths of a percent are going to motivate you one way or the other.” If you’ve dealt appropriately with any performance issues on your team throughout the year and truly believe they are all pulling along as best they can, this may not be the time to make minute distinctions among the performers on your team.