Many employees feel that validation for their work comes in the form of a bigger paycheck. Similarly, many bosses assume that dangling that annual raise is the best way to motivate employees. In fact, there is a large body of evidence that suggests money is not a very strong motivator at the end of the day.
Research suggests that intrinsic motivation, driven by factors such as autonomy, mastery, and purpose all play a significant role in employee satisfaction. Such factors are not driven by monetary rewards. While higher income can be correlated to increased satisfaction, it is only effective up to a certain point. Beyond providing for food, shelter and safety, what really motivates people is a sense that they are doing meaningful work, and that they are recognized for that work.
To drill down further, we can take a look at Herzberg's Motivation-Hygiene Theory. Frederick Herzberg's research examines the factors that lead to employee satisfaction and dissatisfaction in the workplace. He conducted a series of studies in the 50's and 60's and identified two distinct factors affecting job satisfaction: Motivation factors, and Hygiene factors.
Hygiene Factors (Dissatisfiers): These are factors that when absent or inadequate can lead to job dissatisfaction. They are often related to the work environment and include salary, job security, working conditions, company policies, and interpersonal relationships. If these factors are poor, employees may be dissatisfied, but improving them alone won't necessarily lead to higher motivation.
Motivational Factors (Satisfiers): These are factors that contribute to job satisfaction and intrinsic motivation. They are related to the nature of the work itself and include achievement, recognition, responsibility, advancement, and opportunities for personal growth. Improving these factors can lead to higher levels of employee motivation and satisfaction.
Predictably, Herzberg's theory resonates with me because of the duality of the two opposing factors. Salary, job security, and working conditions are the yin of motivation; they are necessary for fulfilling the basic needs of food, shelter, and safety. Meanwhile, factors such as recognition, achievement, and growth are the yang. Adequate salary is necessary to prevent dissatisfaction, but recognition is needed to achieve long-term satisfaction. Together they make up the "Tao" of motivation.
The absence of dissatisfaction (addressing hygiene factors) doesn't necessarily lead to motivation. Instead, it simply prevents dissatisfaction. To truly motivate employees, organizations need to focus on providing opportunities for growth, recognition, meaningful work, and other intrinsic motivators.
One interesting observation of this theory in the performing arts is how motivation works in the absence of fulfilling basic hygiene factors. Consider the phrase "starving for my art." Bandied about as a badge of honor, it suggests that those who work in the arts can be motivated solely by recognition and reward. But it's simply not the case. It's not sustainable. It flies in the face of Abraham Maslow's Hierarchy of Needs. It's all frosting and no cupcake. Praise is not a substitute for advancement through salary increases or career achievements. At some point, you will need more money. Your first instinct might be to ask for a raise as compensation for your hard work, but that rarely pans out. Many organizations have a very structured process for compensation that includes metrics for equity across the organization. So if you are asking for a raise, consider the why. If you're making enough to meet your basic needs, you don't need money, you need opportunity for growth. The money will follow.