To What Extent is Money a Motivator for Employees?

This article discusses the extent to which money serves as a motivator for employees in the corporate environment. It explores the benefits and drawbacks of using money as a motivator and suggests strategies for effectively utilizing money to enhance employee motivation.

To what extent is money a motivator for employees?
In corporate language, we use the term “compensation” for money. Each
employee is pulled up to a company through this, as it is one of the basic
necessities to have good standard of living. Money these days has been a
great motivator for employees. But as the saying says, it doesn’t how much
you have, what matter is to understand the value of it. In a corporate
environment, perks and benefits in form of cash or bonus is provided.
Voluntary works leading to extra compensation drive employees to work
harder and more in a smarter way. Employee always sees for recognition in
the firm, there could be ways to do that. One simple way is through working
harder and smarter and getting rewarded to it – reward if linked to cash
incentives would augment and boost motivation, making employee more
attuned towards work. Second way could be recognition – each blue-collar
worker wants to be appreciated and praised for the contribution he is doing
towards the organization. Organizations across the globe adopt different ways
to motivate employees. To cite an example, Merlin – one of the top-notch
entertainment company gives recognition to people who ‘go the extra mile”.
Instant cash awards and certificates are distributed to each. Implementing
this, they noticed that employees strive to work hard and a sense of earning
recognition and “go the extra mile” is there (White, 2015). This ultimately
enhanced and augmented the productivity of organization. Each person works
to have the basic standard of living and money serves its purpose. So, this is
but obvious employees will tend to lean towards money giving boost to their
motivation. Hops between companies are majorly because of money or
compensation being offered more in the new company. But, this motivator has
its demerits too – if someone is praised or appreciated or rewarded with cash
incentives, the other employee receiving less will in a course of time, feel
demotivated. Creative and innovative strategies should be adopted by
organizations to make money as the motivator. Concerning this, organization
should adopt “carrot and the stick” theory. To lure employees, carrot should
be shown but at the same time stick should also be there so as to know that
trust by the organization towards employees has to be carried ahead in long
run. The poor performance has its drawback, this should be well
communicated to each employee. If it escalates motivation for employees, to

some it decreases as well. So, a job well done will be appreciated through
rewards and recognition but at the same time the one performing low, will
have to charge up. In consideration to this, the management should adopt
transparent reward and recognition policy (Lavoie, 2016). This will aid in
having less grievances and the work culture will be healthy too. Since the
employees are the strongest pillars of any organization, they need to be fully
motivated and only motivation in today’s era is money.
Lavoie, A. 2016. This is why you need to talk money with your employees.
[Online]. Available at: < https://www.entrepreneur.com/article/280786>.
[Accessed on October 20, 2016].
White, D. 2015. Money is nice, but its not enough to motivate employees.
[Online]. Available at: < https://www.entrepreneur.com/article/247333>.
[Accessed on October 20, 2016].