Do people work more if they are paid more?

No

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by Robin Landry

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Thanks to the influence of my seventeen year old son I have acquired a working vocabulary of the hip-hop world where wealth and the gaudy display of "bling" or "ice" (i.e. flashy or elaborate jewelry or accessories, according to Wikipedia) are an inherent part of the culture. But what about mainstream corporate America? Is it really "all about the Benjamins" here as well? In other words, does money alone serve as the biggest motivator or predictor of employee productivity and success? In short, do employees work harder simply because we increase their pay?

After a nearly twenty-five year career with a large insurance company whose massive employee group is one of the most highly paid in the industry I would have to say that I do not believe that people necessarily work harder just because their pay is increased. Even worse, there are several studies which seem to suggest an exactly opposite effect in that higher salaries may actually serve to lessen motivation among employees because of either a heightened sense of entitlement or a tendency to work toward the reward measurement instead of striving for true quality.

Human beings work for a variety of reasons. While salary is one important consideration it is certainly not the only one. There are some jobs that I would never want to do, no matter how well paid they might be. And while I have been fortunate in the fact that I have never had a job that was truly awful, I have definitely enjoyed some positions more than others. Pay increases in positions where I felt bored, unfulfilled or disrespected might have delayed my departure but probably would not have motivated me to work harder or remain in those positions indefinitely.

Money is only a single factor when it comes to the world of work. The desire for personal fulfillment, the need for intellectual stimulation, love of the work itself and the desire to socialize with others are just a few of the driving forces for individuals in the working world.

The rewards that human beings seek as a result of their work can be separated into two types: intrinsic and extrinsic rewards. Intrinsic rewards are factors like personal fulfillment, love of the work itself, increased self-esteem, or a personal sense of accomplishment. Intrinsic rewards are generally long lasting and people will work harder to attain them.

Extrinsic rewards, on the other hand, are more fleeting. Money, promotions or an office with a window might motivate someone toward improved performance in the short term but generally would not be adequate to reinforce an individual's desire to work significantly harder in order to achieve longer term success.

In fact, David Beswick, of the University of Melbourne and author of an academic paper analyzing the interaction between intrinsic and extrinsic motivation and rewards goes so far as to say that extrinsic rewards can actually lower quality of work product. He states that when individuals experience the intrinsic reward of performing a job out of a pure sense of enjoyment they are more likely to take time to creatively explore many different aspects of the work. Complexities and unexpected results are more likely to be examined in depth when a person is driven by intrinsic rewards. Conversely, extrinsic rewards seem to encourage the "get it done" mentality. Workers seek to meet the reward criterion as quickly as possible, often with little regard for quality and have no incentive to spend time researching the less obvious intricacies of a given problem.

Employers whose goal is to achieve high levels of employee retention and increased productivity would do well to concentrate on assisting employees in attaining deeper, more meaningful intrinsic rewards. Rather than attempting to reward employees directly with extrinsic rewards like money, providing employees with support and empowerment may actually have longer lasting results.

Examples of empowerment might include providing employees with greater autonomy at work, increasing employee involvement in decision making or allowing employees to design their own flexible work schedules. Other effective types of employee support may also include increased learning and job enrichment opportunities and programs and services that will help to promote work-life balance. I once worked in a company location that offered dry cleaning pick-up and delivery from the office. The time that I was able to save by not having to rush to the dry cleaner in the evenings or on weekends gave me more time to spend with my son, but also on some weekday evenings allowed me to work later and accomplish more since I did not have to worry about rushing off to perform a number of errands after work.

Perhaps the greatest intrinsic reward is increased self-esteem which employers can help to foster by recognizing the efforts of employees and showing appreciation on a more personal level. I once left one location in my company to embark on a new adventure and participate in the opening of a brand new office several states away. Upon leaving my old team, my supervisor arranged a farewell lunch in which my co-workers presented me with a number of homemade and hilarious "parting gifts" and my supervisor presented me with a handwritten personalized note thanking me for my contributions to her team and wishing me well. Twenty years later, after numerous promotions and monetary rewards I still find those homemade gifts and the heartfelt, handwritten note to be much bigger boosts to my self-esteem. They serve to remind me why I love working for my company and encourage me to do my best each day.

I think the bottom line is that people work harder when they feel good about themselves, about their organization and about the nature of the work itself. And those are things that money alone simply cannot buy.

References:

Beswi ck, David. "Management Implications of the Interaction Between Intrinsic Motivation and Extrinsic Reward." http://www.beswick.i nfo/psychres/managem ent.htm

Grossman, Brianna. "Keeping Good Employees: Money as an Internal Motivator." www.retentionconnect ion.com

Robinson, Ann. "Why Do People Work Harder?" http://courts.michig an.gove/mji/training /some-people-work-ha rder.pdf

Shafer, Patricia. "Entry Level Employees: Increasing Motivation and Retention." www.businessknowhow. com/manage/entry-lev el.htm

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