Why do you have to pay employees to do the right thing?

Photo by eyetoeye

Energizer Battery Company is rewarding employees for flying coach. If employees fly coach, the company splits the difference with them – up to $2,000 for trips to Europe.

This just seems really strange. Let’s put aside the fact that employees are now getting a $1,000 bonus for flying to Europe, so they may be inclined to fly more. (That’s about $50/hour to sit in an economy seat! I’d consider a job doing that.)

At first glance this seems like an awesome deal. The company saves money, employees make money, everyone’s happy.  I’d be a lot richer if I got this deal. But I fly coach without an incentive. Or rather the incentive is that I think the GNOME Foundation can do better things with that money.

That’s the key. Obviously, that business class seat isn’t worth the the $2,000 more the company was paying for it. It’s not even worth half that much to the employee! The company is counting on the employee being willing to sit in economy for $1,000.

So why were employees flying business? Because they didn’t care that the company would be $2,000 poorer. They don’t think the company will do anything more important to do with that money than fly them in business. They either don’t have enough say in how the company makes financial decisions or enough visibility into the process to feel like that money would be wisely used. Or they don’t care about what the company is trying to do.

That is what this company is missing. Employees need to know the money they are saving is going to go to good use. It’s hard to stay in a budget hotel if you know your CEO is staying in a 5 star hotel. It’s easy to stay in a budget hotel if you know your company is going to ship 10 more computers to underprivileged kids with the $2,000 you saved.

The bigger problem here is that employees are either not bought into the company’s mission or they do not trust the company’s financial decision process.