Gary Martin: Wellbeing, mental health and work-life balance as emotional pay cheques can lead to loyalty

For many, the lure of a pay rise or bonus is as irresistible as payday itself. Those extra zeros on the pay cheque might help to cover the bills, fund a holiday or afford a little luxury. But there is another currency at work that employees are just as eager to cash in: the emotional pay cheque. With workers increasingly valuing wellbeing, mental health and work-life balance, the emotional pay cheque is quickly becoming the real currency of loyalty. It is no longer just about financial compensation. Employees want to feel rich in purpose, recognition and personal growth. While the regular pay cheque might top up the bank account, an emotional pay cheque deposits directly into the heart and soul of the employee, keeping them fully invested in their work. Recognition is a key part of this emotional compensation. It does not always take big bucks or flashy rewards — sometimes a simple “thank you” or a shout-out in a meeting is worth its weight in gold. Simply feeling seen and appreciated pays dividends when it comes to motivation and engagement. Purpose is another vital component of the emotional pay cheque. We all want to feel like our work adds value in some way. Whether it is contributing to a cause or knowing that one’s efforts have delivered a positive impact, purpose keeps employees invested in their roles. Emotional pay cheques are also banked in personal growth and development. Today’s workers are hungry for opportunities to learn new skills, take on fresh challenges and feel like they are advancing their careers. When employees feel an employer is investing in their future, they are more likely to stick around for the long haul. Work-life balance is another area where the emotional pay cheque pays out. Employers who offer flexibility tend to see higher levels of satisfaction for the simple reason that when employees have flexibility, they feel richer in both their personal and professional lives. It is also true that positive workplace relationships contribute to an employee’s emotional pay cheque. The workplace is more than just a spot to cash in on your skills. It is a social space where employees form connections that add value to their day-to-day experience. Strong, supportive relationships with colleagues can pay off in emotional wellbeing while toxic environments drain the account of motivation. One challenge for employers is to understand that emotional pay cheques are not a one-size-fits-all deal. What one employee finds valuable might not resonate with another. Some might cash in on recognition, while others bank on flexibility or development opportunities. The era of relying solely on a financial pay cheque to attract and retain top talent is fading fast. A decent wage might keep employees in the black, but it is the emotional pay that really keeps them committed and fully invested in their roles. In today’s workforce, the emotional pay cheque is the real treasure. While money can cover the basics, emotional compensation makes work truly enriching. For employers who invest wisely, the returns on an engaged, motivated and loyal workforce are priceless. Professor Gary Martin is chief executive of the Australian Institute of Management WA.