Extrinsic motivation has limits. Research shows that salary increases yield diminishing returns once employees earn enough to meet their needs. What truly drives people is intrinsic motivation -mastery or self-realisation - which varies by individual.
The book « The Psychology of Money » talks about the ultimate intrinsic value of money - being in control of one’s time and having the freedom to pursue one’s dreams. Being in control of one’s time is being in control of one’s life. But Do we all have to work hard, save, and quit our jobs? Not necessarily. To motivate employees, we can empower people to own their time and give them the freedom to do their best. But how? Ownership and accountability come to mind.
Accountability is a dirty word in business. ‘Holding someone accountable’ means we will blame you if something goes awry. We can all agree that it is not very motivating. In the book « The 12 Week Year », the authors give accountability another meaning: ownership, with detailed instructions on how to do that. How we translate business objectives to ownership of employees’ time and freedom to achieve something meaningful that aligns with employees’ vision is what leaders should strive to achieve.
References
- Moran, B. and Lennington, M. (2013). The 12 Week Year. New Jersey: John Wiley & Sons.