Monday, November 4, 2013

Stop Paying Bonuses: Money Doesn't Motivate Employees

Usually, people will work harder and smarter in order to earn more money, right? Wrong. According to Dan Pink, an author, extensive research shows that paying creative people bonuses for performance not only demotivates them, but might even guarantee that they will fail. This research has found four things that lead to better performance.
  1. Fairness. Knowing that you are being paid a decent amount for your work so that money doesn't become an issue.
  2. Autonomy. Controlling events in your work life by choosing when you want to do it and what you want to do.
  3. Mastery. Excelling at a craft that you enjoy as well as being recognized as a master by peers you respect. 
  4. Purpose. Feeling that you work is helping other people and changing the world in a positive way.
Anyone who has worked with top engineering teams know that these points are true. The most potentially profitable and creative work gets done in environments where engineers aren't beholden to management. The same concept goes for those who work in sales. Top performers aren't motivated to continue making more and more money, what actually motivates them is beating their competition while remaining independent from the daily corporate bull crap. Money is just seen as a scorecard. To continue reading how employees are not motivated by money, click here.