Why money isn’t everything
Earning the money we need to live is the main reason we go to work. But does money motivate us to continuously perform our best work? Let us take a look at what research has to say about that:
Financial incentives are a short term fix
Financial incentives put us in a happy mood and give us something to feel good about. The only problem is that feeling is fleeting. When incentives are not related to advancement or having an impact on the organisation, they are a temporary fix that dissipates as fast as the ink dries on the pay review letter.
Money doesn’t make you like your job
Money gets the right people in the door, but it’s not necessarily what keeps us there. Research interestingly shows no correlation between how much we are paid and how much we like our job. You can be engaged or disengaged wherever you are on the current ladder and money won’t make a lot of a difference.
More is never enough
Money may light a temporary fire, we may get a temporary boost resulting in higher sales or proactivity, but the problem with relying on incentives is that it is never enough. If money is the only strategy used to engage us then the only way your employer can keep you interested in your job is to continue to offer more. The more we are given, the more we will expect.
Yes, money is very much a factor
Money is a factor when it doesn’t provide for basic living expenses or doesn’t reflect the contribution that you are providing to the organisation. Receiving what we feel is fair compensation frees us from worrying about survival needs and supports our belief that we are in a mutually beneficial relationship with our employer.
When money is the only incentive disaster awaits
If we accept a job only on the basis of what it is paying then we are on a slippery slope. Whilst the money might be good other factors in the workplace are equally important. Most importantly is we need to enjoy what we do, like our colleagues, respect our Manager, feel appreciated and feel we are making progress. Money is not everything.
Money is not a motivator
Employers need to get it right, they need to pay a fair rate for a fair job. If you feel you are being paid unfairly you will be demotivated however being overpaid won’t necessarily motivate you in the long run. Pay satisfies us but it definitely does not motivate us for very long.
Money won’t make us like our job
Money definitely won’t make us love our job it will just stop us from hating it. Being over compensated won’t make up for a rotten job or a poor work environment. Bosses can never pay enough for us to love our jobs. As a very wise person once said, “If you don’t pay me what I am worth I will leave – but I will not stay only for the money”.
Only intrinsic motivation lasts
Whilst money will make us happy in the short-term, feeling like you belong, having a purpose and achieving the status you have aspired to is more important. Everyone wants to feel wanted, needed and valued, these feelings count for more than what you receive in your monthly wage packet.
Incentives are not the same as motivation
True motivation is getting us to do something because we want to do it. This type of motivation continues in good times and in bad. Motivational factors are challenging at work and usually consist of recognition, responsibility and personal growth. Research shows that pay increases won’t turn us into proactivity machines. Sometimes giving people bonuses and commissions leads to a poorer performance.
Money can lead to burn out
We never feel we have enough money because we get used to our circumstances very quickly and need more money to make us happy again. Think back to your last pay increase. When did you get the greatest satisfaction – on the day your boss told you were getting a raise? The day it started hitting your bank account? And how much satisfaction was it giving you six months later? Not a lot – your joy had completely burned out.
In conclusion, the amount of money you get paid for your work is a huge distraction. If you look at work as just a place to get a pay packet you’re doing a disservice to yourself. It’s nearly impossible to avoid work and life merging into one, so you might as well make the most of it and align your goals to create the life experience you want – money really isn’t everything.