Is Money a Motivator for Employees?

by Lois Moncrief

The answer is not simple. The answer is "sometimes" depending upon the circumstances.

The only people I have heard who say that money is not a motivator are people who have plenty of money.

Show me an individual who is having trouble feeding his family and putting a roof over their heads and I will bet he will say that money is a motivator for him.

Do bonuses motivate? Yes, for a while but within months the employee usually goes back to business as usual. If he was a self motivator before he will be that again. If he wasted a lot of time and did not work hard he will revert to that behavior also.

Do raises motivate? Yes, for a while.

Do promotions motivate? Yes but there are other factors here - new responsibilities, a different and perhaps more challenging assignment. The other factors may actually be more motivating than the additional money involved.

Will potential employees take any job if the money is enough? Some will.

Are there jobs I would not take no matter how much money someone offered me? Absolutely.

Certainly, Money is a Big Factor But There Are Other Important Factors to Be Considered

For example:

* the working conditions,
* how one is treated on the job,
* how interesting is the job
* how dull or repetitious is the job
* how dangerous is the job, etc.

Can You Motivate Employees Without Money Being Involved?

Yes, you can.

A highly desirable job can be very motivating. Generally, being an elected local official in the USA does not pay very well. Some people take these jobs for the recognition and some because they want to serve. Other jobs can be motivating for different reasons.

Teachers - someone who has spent their life wanting to teach others will accept a teaching position when they could easily make more money doing other work. Teachers willingly put in many extra hours evenings and weekends grading papers and preparing lessons without worrying about the actual pay per hour for all of this extra work because they like to teach.

Other service oriented work such as fire fighters and policemen are certainly not taking those positions for the pay but usually because they have a desire to help or serve others.


Some Ways to Motivate Employees That Do Not Involve Money

* Provide good working conditions and a good place to work

* Treat employees with respect and kindness (do unto others as you would like them to do to you). Use their appropriate given name and not some disrespectful name.

* Recognize and praise your employees for jobs well done.

* Remember, most people want to feel appreciated and valued. If your employees have earned appreciation and if you value them then show them. Saying, "Thank You" and "Please do this" rather than yelling "Do This" or saying "Hey you..."

* Show them you care about the working conditions, their concerns about the work and the jobs.

* Listen to their concerns.

* Allow them to participate in helping to shape the work and the future so they can have pride and ownership in their work.

* Match the right person to the right job - give a person a job they really love doing and can excel at and then praise them when they do excel.

You Are the Manager

None of this means allowing them to take advantage of you or you being a weak manager. Never allow that. You are the boss. You can be firm but still fair and caring.

You can do all these things and still maintain your authority position as the manager or business owner. You can be benevolent and yet still be in control.

Based on the principle of reciprocity. you will probably find that your employees will appreciate you even more as a boss and will want to work even harder for you.

U.S. President Ronald Reagan and Colin Powell, His National Security Adviser

There is a wonderful story about Colin Powell and President Ronald Reagan. Colin Powell, U.S. President Ronald Reagan's National Security Adviser, wanted a specific course of action. President Ronald Reagan agreed to follow the course of action. Unfortunately, the results were not as hoped.

In a press conference, Ronald Reagan was pressed by reporters about his administration's action. He accepted full responsibility for the result and never mentioned Colin Powell's name at all.

Later, a grateful Colin Powell told a friend, "There is nothing I would not do for that man." In that one action, U.S. President Ronald Reagan had won his National security Adviser, Colin Powell's total devotion. There was no money involved just respect and kindness.

Russell Brunson

Russell Brunson is in his twenties. He was a wrestler in college. He became interested in developing an internet business and created the concept of "microcontinuity" which made him over a million dollars within a few short years.

I had the pleasure of hearing Russell speak at the SuperConference in April of this year and he said he was going to use some of the money he had earned for his real passion. He has hired a coach and the best greco wrestler he can find to help him prepare to compete in the 2012 Olympics.

Certainly, his motivation for a shot at the Olympics is not fueled by money as he already has that. He, perhaps, wants the satisfaction of achieving his dream or perhaps he wants the recognition and praise of being an Olympian.


Copyright (c) 2009 Lois Moncrief All Rights Reserved