Is Money a good motivator?

Generally money isn’t a good motivator for many employees because they consider money a primary motivator. However it depends on the type of need the employee has and their personality. For example someone would have a better use for money rather than being recognized for their work but the same person doing the same job would rather be recognized than have more money. Other non-financial incentives such as rewards, promotions and employee recognitions will usually have more impact on employees because a lot of employees are interested in getting higher potion at their work place.

(http://www.academia.edu/4631951/Is_money_the_primary_motivator_for_employees)

Money is considered a primary motivator because, people do good work in order to get paid a fair wage but if they worked harder and longer the wage would eventually increase. This type of motivations is said to be the full circle where:

Money = Motivation, Motivation = Work, Work = Money

But the truth is that money isn’t the most powerful motivator, it may be a major factor in the employee’s choice of work, but other motivators have a higher impact on the performance by the employees.

(http://wallstreetinsanity.com/is-money-the-strongest-motivator/)

5 Reasons Why Money isn’t the best Motivator

1-      Industry Standard Salaries

When employees compare their salaries to the average industry salary and find out that they are earning blow average can be de-motivated. Even if the person finds out they are earning a little more than the average it’s not going to make them work harder than they already are.

2-      Other Peoples’ Salaries

Salaries for employees are usually calculated according to the experiences, skills set etc. Now if the same job position has two different employees with different salaries, it’s going to de-motivate the employee who has the lower pay.

3-      Paid Overtime

Overtime can be really good for employees every once in a while, but if it’s a regular occurrence for employees they can overwork themselves leading poor concentration and low energy levels. It can also distant the employee from family and friend making them unhappy. Doing this could have a negative impact and can de-motivate the employee than to motivate.

4-      Salary grading

Most companies tend to pay employees with the same position roughly the same amount. However if someone works harder and they get paid the same as some else who doesn’t, it de-motivate them.

5-      Postponed or cancelled raises

When applying for a job in a big company such as Walmart people expect to get a pay increase every year, but as time passes people stop getting motivated by it, because it has already been achieved many times. However the biggest de-motivator is finding out that you will not be getting a pay increase because the company hasn’t reached its targets for the year.

(https://devmanagement.wordpress.com/2007/09/26/7-reasons-why-money-is-not-the-best-motivator/)

(http://i.ytimg.com/vi/hCtLhdOX7jY/maxresdefault.jpg)

https://www.youtube.com/watch?v=up2PP_ah4-k&sns=em