Motivation is an age-old business problem. This article addresses some of the thinking behind using incentives to motivate employees. Note that there is an assumption that the standard pay level is enough to sustain employees’ basic needs.
Source: Incentive, March 30, 2016.
In many companies, money is the most frequently used motivator – even though research shows that financial incentives are a poor choice to change behavior. Sure, money is important so people can pay their bills and provide for their families – but once these fundamental needs are met, the psychological benefits of money are debatable. In fact, there is little correlation between pay and job satisfaction levels – even across cultures and geographies.