Fun and compensation

Added: Shadae Spotts - Date: 01.05.2022 09:24 - Views: 38047 - Clicks: 2833

How much should people earn? Even if resources were unlimited, it would be difficult to stipulate your ideal salary. Intuitively, one would think that higher pay should produce better , but scientific evidence indicates that the link between compensation, motivation and performance is much more complex. In fact, research suggests that even if we let people decide how much they should earn, they would probably not enjoy their job more.

Even those who highlight the motivational effects of money accept that pay alone is not sufficient. The basic questions are: Does money make our jobs more enjoyable? Or can higher salaries actually demotivate us? The most compelling answer to this question is a meta-analysis by Tim Judge and colleagues. The authors reviewed years of research to synthesize the findings from 92 quantitative studies.

The combined dataset included over 15, individuals and correlation coefficients. The indicate that the association between salary and job satisfaction is very weak. In addition, a cross-cultural comparison revealed that the relationship of pay with both job and pay satisfaction is pretty much the same everywhere for example, there are no ificant differences between the U. A similar pattern of emerged when the authors carried out group-level or between-sample comparisons. These have important implications for management: if we want an engaged workforce, money is clearly not the answer.

In fact, if we want employees to be happy with their pay, money is not the answer. In a nutshell: money does not buy engagement. Despite the overwhelming of laboratory experiments carried out to evaluate this argument — known as the overjustification effect — there is still no consensus about the degree to which higher pay may demotivate.

However, two articles deserve particular consideration. The first is a classic meta-analysis by Edward Deci and colleagues. The authors synthesized the from controlled experiments. The highlighted consistent negative effects of incentives — from marshmallows to dollars — on intrinsic motivation.

These effects were particularly strong when the tasks were interesting or enjoyable rather than boring or meaningless. Importantly, some have argued that for uninteresting tasks extrinsic rewards — like money — actually increase motivation.

See, for instance, a meta-analysis by Judy Cameron and colleagues. The authors analyzed real-world data from a representative sample of over , U. The showed that employee engagement levels were three times more strongly related to intrinsic than extrinsic motives, but that both motives tend to cancel each other out. In other words, when employees have little interest in external rewards, their intrinsic motivation has a substantial positive effect on their engagement levels.

However, when employees are focused on external rewards, the effects of intrinsic motives on engagement are ificantly diminished. This means that employees who are intrinsically motivated are three times more engaged than employees who are extrinsically motivated such as by money.

This is hard to test. Yes, that could be one reason; another could be that people who focus too much on money are preventing themselves from enjoying their jobs. This research also begs the question: Is this a money-focused, engagement-eroding mindset one that employees can change? Or is does it reflect an innate mindset — some people happen to be more focused on extrinsic rewards, while others are more focused on the task itself?

And in theory, your mindset should be malleable — the brain is remarkably plastic. We can try to teach people that if they focus on the task itself and try to identify positive aspects of the process, they will enjoy it more than if they are just focused on the consequences rewards of performing the task. Intrinsic motivation is also a stronger predictor of job performance than extrinsic motivation — so it is feasible to expect higher financial rewards to inhibit not only intrinsic motivation, but also job performance.

The more people focus on their salaries, the less they will focus on satisfying their intellectual curiosity, learning new skills, or having fun, and those are the very things that make people perform best. The fact that there is little evidence to show that money motivates us, and a great deal of evidence to suggest that it actually demotivates us, supports the idea that that there may be hidden costs associated with rewards. We all need to pay our bills and provide for our families — but once these basic needs are covered the psychological benefits of money are questionable.

But one size does not fit all. Our relationship to money is highly idiosyncratic. Indeed, in the era of personalization, when most things can now be customized to fit our needs — from social media feeds to potential dates, to online shopping displays and playlists — it is somewhat surprising that compensation systems are still based on the premise that what works for some people will also work for everyone else. Other than its functional exchange value, pay is a psychological symbol, and the meaning of money is largely subjective.

If companies want to motivate their workforce, they need to understand what their employees really value — and the answer is bound differ for each individual. Research shows that different values are differentially linked to engagement. For example, income goals based on the pursuit of power, narcissism, or overcoming self-doubt are less rewarding and effective than income goals based on the pursuit of security, family support, and leisure time.

Perhaps it is time to compensate people not only according to what they know or do, but also for what they want. The more emotionally stable, extraverted, agreeable or conscientious people are, the more they tend to like their jobs irrespective of their salaries. In fact, the biggest organizational cause of disengagement is incompetent leadership.

You have 1 free article s left this month. You are reading your last free article for this month. Subscribe for unlimited access. Motivating people. Does Money Really Affect Motivation? A Review of the Research. We all need to get paid. But the evidence suggests it undermines our intrinsic motivations. on Motivating people or related topic Compensation and benefits. Find him on Twitter: drtcp or at www. Partner Center.

Fun and compensation

email: [email protected] - phone:(640) 310-5546 x 4096

Compensation Can Be FUN!