Are employees motivated by money?
It would seem intuitive that people would be motivated by money in the workplace. After all, money is typically necessary to pay for the necessities of life. In addition, money allows individuals to access certain material items, such as cars, houses, entertainment and merchandise. However, it would not be difficult to find well-paid professionals who lack drive in the workplace. In addition, it is possible other factors that have a more profound impact on motivation.
A sense of entitlement
The challenge with professionals in the workplace is that it isn't difficult to find employees who believe they deserve their paycheck no matter the quality of their performance. In addition, studies suggest that a percentage of workers see themselves as underpaid. When someone feels underpaid, they will not necessarily be motivated by existing pay, particularly if that pay does not show the promise of changing drastically in the future.
For how long?
When individuals receive raises, employers may witness a brief time of altered behavior. However, humans are prone to adaptation. What that means from a monetary standpoint is that a raise may have a positive impact on attitude, but this impact may not be long-term. Once professionals adjust their spending patterns to match their new level of compensation, they may quickly return to prior levels of motivation in the workplace.
How much money?
The question of whether money leads to motivation can be addressed, but a more specific question centers on the amount of money. If an individual is offered a doubled salary, it may have a strong impact. However, if that same person is given a standard 3 percent raise, this may not make a major impact. For example, if a person makes $40,000 a year, a 3 percent may result in an increase of less than $50 per paycheck. Will this amount of money have a major impact on a worker's attitude?
Types of jobs
When it comes to money, the type of job also impacts motivation. Again, a professional that receives a 3 percent raise may not experience a major shift in attitude. However, if a person works on commission or runs his own small business that relies on contracts to make money, there may be a much greater motivation attached to making money. Therefore, attaching motivation to money across multiple position types may be problematic without evaluating the role that money plays in that particular position.
Other factors
Studies have suggested that other factors may impact motivation more than money. For example, Herzberg's Two-Factor Theory suggests that money only has the power to raise motivation to a level of indifference. True motivation is created when individuals are given more responsibility, praised in the workplace and presented with new challenges. This suggests that money is a factor, but for many workers it is more important to believe that the job is meaningful. Getting paid is important, but sometimes an employee will trade a little money for a stronger sense of contentment in what he does each day.
