Does Money Notivate?

It is commonly accepted that money is a prime motivator for employed people [ie - they come to work earn money to live and will leave for another job if its pays more.

Of course, people work to earn money to live - but that is certainly not the only reason … not necessarily even the most important.

People work for a variety of reasons and are motivated by a variety of factors - and those two lists may overlap but not agree exactly.

The assumption that money is the prime motivator can lead to poor decision-making by some executives… and even  by boards of directors who continue to award CEOs ever higher salaries (and bonuses) assuming this will be reflected in performance.

Motivation is, however, a trickier art than simply throwing money at people.

One issue is that some factors can be short-term motivators.  People can, for example,  be motivated by ‘status’ though this is more than simply the job title they are given.  Otherwise all those people labelled as VPs and SVPs would be performing like crazy.   They might be motivated to achieve VP or SVP status but once there, with the key to the executive washroom, it no longer motivates.

What’s really important is to stop spouting the mantra ‘Our people are our greatest asset’ and start believing it.  

Develop staff skills so the=y can develop their role in, and contribution to, the organisation.

Then find out - at least in general terms - what makes them tick - and what they are looking for in their employment.

Trust them to take the small decisions that relate to their own work tasks.

Congratulate them when they perform well and praise them as individuals or as teams.  

You should find their motivation - and their productivity, rises.