Does Money Motivate?

When an employee is demotivated, we automatically- Pay: reasonable to do the job
assume that, if we throw more money at that person- Inter-personal relationships: good relationships with
then they will become more motivated. Right? Wrong!your boss, peers, co-workers, direct reports, team
Money does not motivate. In fact, money does themembers
exact opposite: it actually demotivates. Now, beforeThink about it in these terms: the above Hygiene
you nod your head in agreement and approval andFactors, if present, simply stop the individual from
reach for the company accounts to eradicate allleaving the company and going elsewhere where
wages and salaries, read on a little to find out why.these Hygiene Factors are met. So the morale of the
In the work place there is something called "neutralstory is to, first and foremost, find out what Hygiene
motivation". This is simply the pre-requisite amount ofFactors exist for every single employee, remembering
elements that everyone requires to simply turn up tothat what is true for one person may not be so for
work and do the job. The difficult issue for everythe next.
manager, however, is that everyone's requirementsAs for the Motivators, these are elements that, if in
are different. For some, vacation is more importantexistence, will motivate someone to try harder or "go
than office conditions. For others, have a shiney, newthat extra mile". However, if they don't exist, will simple
computer is more important than a pension scheme.keep the individual at the neutral level but not
And for still other, a certain level of income is morenecessarily demotivate them. Examples of Motivators
important than sick-leav allowance. And for some theare:
level of income required to reach this neutral level is "x"- A sense of achievement
and for others, it is "x + 1" - this for doing the identical- Recognition
job.- Responsibility
This neutral level is therefore the summation of all the- Advancement
elements that each person requires simply to turn up. It- Using capabilities
does not motivate people to work harder. It is simplyYet again, each person will be motivated by different
the point at which people do there jobs in accordancethings: some simply want a pat on the shoulder and to
to their job descriptions and objectives that have beenbe told they have done a good job. Others want a
set. Take one or all of these elements away (orpromotion. Others still may require a greater level of
reduce them so that the neutral level is not met) andresponsibility and autonomy while some just want to
suddenly you have a demotivated person on yourbe simply left alone to do their jobs. As a manager and
payroll. Therefore, these factors - known and namedleader, you need to discover what it is that drives each
by Frederick Herztberg as Hygiene Factors - don'tindividual and how best to provide that motivator.
motivate but can demotivate if they are not present inIn summary, it is important to remember that what
the required quantity. Examples of Hygiene Factorsmotivates does not necessarily demotivate (if not in
are:existence) and what demotivates does not necessarily
- Company policies and benefits: vacation package,motive if in existence. Speak to your people and find
sick leave allowance, pension schemes, healthout what they require to reach their individual neutral
insurancemotivation levels and then what more is required to
- Working conditions: office space, equipment requiredmotivate them beyond that level.
to do the job, environment, easy of access