The Importance Of Money As A Motivator Essay example

1308 Words Aug 18th, 2016 6 Pages
In 2011 Market Tools Inc. collected a response that 39% of employees did not feel appreciated at work while a further 77% of employees said they’d work harder if their efforts were recognised (Hay Group, 2013). These figures raise the question, how important is money as a motivator to good performance? Motivation is different for everybody, with differing values, socioeconomic backgrounds and personality traits; employer’s need to recognise money will motivate different employees to certain extents as motivation is not ‘one-size fits all’. This essay will explore the effectiveness and importance of money as a motivator, potential implications and alternative means of motivation in the workplace. Ultimately, not only is it important to pay people well and pay people fairly; but it’s important to incorporate non-monetary incentives into a reward system which in essence, should aim to attract, retain and motivate employees.

There’s no denying humans are motivated by money. This is why managers who implement pay for performance models have seen successes, particularly in sales type situations and achieving short-term goals (Yerre, 2012). Moreover, money is essential to live and with the cost of living rising steadily each year and pay increases closely linked to performance and promotion this in itself is motivating for lower socioeconomic classes (McMahon, 2016). Monetary incentives aren’t just limited to reward good performance, rather a key attractor in enticing talented…

Related Documents