What's the most common thing companies use to motivate their employees? Money! Don't get me wrong. We all appreciate money and none of us would turn it down if it were offered to us, but is monetary reward really the best way to motivate people?
I mentioned in my previous post about Maslow's Hierarchy that leveraging higher level needs will yield better results than focusing on lower level needs. Yet money is usually the motivator of choice, particularly in a sales environment.
Remember the five levels in Maslow's Hierarchy? 1.) Physical, 2.) Safety-Security, 3.) Social-Belonging, 4.) Esteem, 5.) Self-Actualization. These build on one another. For example, I would not be highly motivated by social or esteem factors if I don't have enough to eat. The needs in the lower levels need to be met before the higher level motivators kick in. Money is actually a Safety-Security factor, that's only the second level of the hierarchy. "But money is the most important reason people work," you might say. Money is important, but actually it is not the main reason people stay with or decide to leave a job.
Research the Kelly Company conducted found that folks looking for a job cite organizational factors (money, benefits, company reputation) as the primary determinant in whether or not they'll join a company - followed by job factors (duties, schedule, training) and then by leader factors (trustworthiness, coaching, flexibility). However, something very interesting happens once an employee has joined an organization. The list flips. The leader factors become the most important thing to the employee. Would you believe that pay comes in at number five (behind things like coworkers, career opportunities, and schedule) for reasons people leave an organization? The number one reason people leave is their leader. Maybe you've heard this cliche: "People don't leave companies, they leave managers." According to this research, it's true.
So why do we so often default to money as the prime motivator? I think we do it because it's easy. It takes much less effort to throw some extra cash at folks than to actually make a person feel like they're part of a team or build their esteem. Perhaps giving cash away is the path of least resistance? It's true the top three levels of the hierarchy require "heavy lifting". It's hard work to motivate and build people up in the face of everyday job pressures but the payoff is worth it. And a funny thing about focusing on the higher levels - it doesn't really have to "cost" the company anything. I'm not saying we should all do away with money-based incentives. But if we think that's all we need to do to keep our employees motivated, we're missing out.
