We often wonder why employees churn even when they are well paid.
That's because we don't compensate them in all the applicable currencies.
Let me explain.
Every employee has needs.
Financial, intellectual, emotional, psychological, social.
When we pay out a salary, money goes out of a bank and into a bank.
It fulfills the highly essential financial requirement but that is mostly an impersonal transaction that doesn't quite fulfill the other needs.
To compensate for those, you need to use a different currency than "money".
Nurturing an employee by giving them feedback, advice & mentorship addresses their intellectual needs.
Talking to them as humans, ensuring they don't burn out & caring about their careers produces emotional comfort.
Appreciating an employee's hard work publicly improves their social outlook.
Vouching for an employee and giving them rare opportunities of growth boosts their confidence, trust & loyalty beyond measure.
Companies that stick with only money and miss out the other 4 are still prone to turnover.