by Doug Clore

Created on: November 27, 2009

Employees appreciate financial motivation more than recognition. Given the choice between an increase in pay and an increase in recognition, very few employees will choose recognition. This makes perfect sense when you consider the reasons people work. People work to pay bills for themselves and for their families. It is rare that you will find an individual who will express recognition or notoriety as a reason for employment. As employees begin to perceive all of their basic needs to be met, they may begin to appreciate recognition over money as a means of motivation. At present, the condition of the average employee is not so advanced as to allow concern over higher level needs like recognition to overshadow unmet lower level needs like food and security.

There is a hierarchy of needs common to all mankind, developed by Abraham Moslow as a pyramid, and widely accepted by those who study human development. The most basic needs are physiological and include the need for food and water. Next come needs concerning a safe living environment and security. The third level of needs includes love and relationships. The need for self esteem (respect for self and respect from others) is not evident until the fourth level of Moslow's pyramid of needs . The fifth and highest level of need is the need for self actualization. Employees will ignore (or place less value on) upper level needs until they perceive lower lever needs to be secure. In other words, employees that perceive their greatest unfulfilled needs to be in the area of food, housing and safety/security will naturally appreciate financial rewards more than recognition. On the other hand, if the employees being motivated already feel secure in their basic physiological and safety needs, they may well appreciate recognition more than cold hard cash. The recognition will help meet their upper level need for esteem.

Very few employees fall into the category of highly compensated to the extent that they perceive their compensation to be anything other than the primary solution to their basic needs. Many employees feel that the basic needs of their families may be in nearly constant danger Recognition does nothing to alleviate the concern that they may not be able to meet their monthly bills this month, or the fear that their job may be eliminated in the near future. Most employees have seen highly decorated co-workers laid off due to hard economic times, and neither the numerous plaques on the wall or the nice corner office go very far when the bills start piling up. Most employees will appreciate financial motivation that helps them meet basic needs more than recognition that meets higher level needs that are really not that important to them.

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