Is Pay a Motivator?

Is Pay a Motivator? Tessa Owens Module Leader Human Resource Management with Tim McGeever

Definitely! • Pay is a motivator! • Everyone only goes to work for money! • Michael Armstrong (1999) argues that • “money is the carrot everyone wants”

But is it? • Many people work for purely extrinsic reasons – i.e. to get money. • Not true of everyone. • Work can also satisfy some of our social needs.

I can’t believe that! If you weren’t getting paid why would you bother to go to work?!

Okay …. … but what about volunteers – they don’t get paid!

That’s true, but … • Maslow’s ‘Hierarchy of Needs’ (1954) suggests that volunteers have had their basic needs met, so money would not be so important to them. • In Maslow’s model pay would be included at the physiological level. • Maslow suggests that all needs are hierarchical, i.e. will only be considered when previous needs have been met.

Maslow’s Hierarchy of Needs

People may go to work just for money, but …..Can you really get them to work harder once they’re there by offering them additional pay?

Why not? • … that seems to make intuitive sense. • If my boss says jump higher for an extra €100 – I would jump higher!

Every time? Always?

Yes – most of the time I think! • But if I was very well paid €100 may not be enough to motivate me……

I agree….. • Herzberg (1966) identifies that the ‘motivational impact’ of productivity bonuses wears off. • Herzberg believes that pay isn’t a motivator AT ALL!

Nonsense! Was he mad?

No really….. Herzberg’s research suggests that people are not motivated by more money – they’re motivated by other things.

Motivators Recognition Responsibility Autonomy Challenging tasks Opportunities for development ‘Hygiene’ factors Company policy and administration Supervision Salary Working conditions Herzberg’s Two-Factor Model 1966

Herzberg’s work is flawed • Herzberg’s work has been criticised in recent years. • His research group were accountants. • Their level of pay had reached a very satisfactory level already. • Additional pay bonuses did not have the same impact • This isn’t true for ‘average’ people.

No I disagree • Herzberg’s work has been discredited to some extent. • But the thing which motivates a lot of people in work is the work they do. • They get real intrinsic satisfaction from doing a worthwhile job.

Thompson (2000) • Incentives can be viewed with suspicion by employees • as tools of management control • Reducing autonomy and discretion. • Can cause resentment and • lead to dissatisfaction and possibly even conflict.

Okay – maybe… • Not everyone is motivated in the same way • Vroom’s (1964) Expectancy Theory recognises that there is no universal principle for explaining individual motivation. • Maybe you can’t prove a link between pay and motivation • Many believe that people do respond to the promise of more money by working harder.

Pfeffer (1998) A system ….. rewarding myriad micro behaviours, sends the message that management believes people won’t do what is necessary unless they are rewarded for every little thing. A system of micro-level behavioural and outcome incentives also tends to convey an absence of trust, implying that people must be measured and rewarded for everything or they won’t do what is expected of them. (p.223)

Conclusion • What about you? • What are your motivations to go to work? Money? And/or something else? • Prepare for our discussions by asking your family and friends – why do they work? • What’s their motivation?

References • Armstrong, M (1999) A Handbook of Human Resource Management, Kogan Page, London • Herzberg, F (1966) Work and the Nature of Man World Publishing, Chicago, IL. • Maslow (1954) Motivation and Personality, Harper & Row, New York • Pfeffer, J (1998) The Human Equation. Harvard Business School Press, Boston, MA. • Thompson, M (2000) Salary Progression Systems in G. White & J. Druker (eds.) Reward Management: A Critical Text. Routledge, London • Vroom (1964) Work and Motivation, Wiley, New York

Is Pay a Motivator?