How to (Not) Motivate Your Employees

Shocking news for most small business owners…

It’s not about the money!

In the discussions I have with the majority of small business owners, there is an assumption that employees are motivated mostly by money.  “If I give them a raise, they will work harder”. Unfortunately, I have also heard, “I gave the employee a raise and he didn’t work any harder!”.

In his great book Drive, Dan Pink explores the rift between what science says and business does.

The reality is that money is more a satisfier than a motivator. Every person needs enough money for their basic needs and comfort. Until they meet these basic needs, money is a motivator. But in looking to obtain extra efforts or performance improvements, money has been proven in research to produce the opposite results – negative performance improvement!

When you think about any employee bonus plans that you may have had yourself or for your employees – Did they ever actually motivate anyone? Was the bonus calculation even tied to activities they had control over? – Usually, it is a mystery what the bonus is right up until they get it.

If an employee makes a complaint about ‘not enough money’, there is another assumption that this is the actual problem. This is a great example of…

The problem is not always the problem

A complaint about money is usually a way of saying there is some other unhappiness or unfairness in existence. If an employee feels there is unfairness between pay rates, this could be a result of a number of factors including a simple misunderstanding.  If an employee is unhappy, there is a natural tendency to ask for more money to compensate for the unhappiness.

If the employer could explore and determine the cause of the unhappiness, the money problems may disappear.

A few final thoughts for your consideration…

Do your employees care about money more than respect, an opportunity for advancement or flexibility?

Have you ever had a bonus plan that motivated employees?

I will continue this discussion in my next blog post!



Author: Paul Foster
Paul's life’s purpose is to bring more cash, freedom and happiness to independent business owners. Paul wants to learn about your toughest business challenges and frustrations so he can help you tackle them.

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