Money as a motivator

Does money motivate staff or are there other means to embrace employee needs? Facing reality you should realize that in the times we are operating the lifespan of everything has shrunk and almost everything we do is only temporary. 

That is why we have to ask ourselves the question "Does money motivate staff?"


  • Is money a key motivator?
  • The role of money in motivation
  • Is money the only motivator?
  • Why do motivational incentives not last?
  • Conclusion - Does money motivate staff

Is money a key motivator?

No matter how many and how much people will argue against this as a motivating agent, money makes the world go around and due to human’s inability to control their greed, money will always be in demand. 

It is not only the business that needs to make money but the employees working there also need money to ensure an affordable lifestyle.

Many people will have all sorts of arguments against money as a motivator such as:
  • It is only a temporary pacifier
  • Employees will keep demanding more money
  • People prefer job security
  • People prefer other compensation such as time off
Although all of the above are true money will always be a major player in the field of employee motivation. It will not go away so the best is to manage it as part of an overall motivational plan.

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The role of money in motivation

It is fairly logical that employees will continue asking for money as a motivator because work demand increases continually. Today's employees are also aware that job security can no longer be guaranteed.

 The cost of living rises daily and employees must keep up with demands in order to have a decent standard of living.

Using money as a motivator does have some indirect positive effects on productivity such as less stress about personal problems.
  • Employees have money for their daily transport to work
  • They can cover unforeseen expenses
  • Can afford little luxuries from time to time
  • Makes feeding the family easier

All these external factors will make employees underperform at work. Money motivates staff to be more productive and earn extra in order to get these problems out of the way.

Is money the only motivator?

Although money motivates staff there are many other motivating agents that employers can use.
  • Job security
  • Time incentives
  • Employee benefits

Job Security

If asked what is most important most employees will say job security.

People prefer job security over money and this can be the strongest counteraction of employers.

The only problem is that there are very few organizations operating today that can guarantee their employee's long-term job security.

Changing demands, mistrust, and disloyalty between businesses and their employees make it impossible to form long-term strategies. 

Employees who know that employment offers no security will use the money factor to cover up for what they can lose. 

In other words, milk the cow before she dries up.

Time incentives

Time off in lieu of money has become more popular, especially for employees who want to spend more time with their families. Many employees will willingly exchange money incentives for additional leave are extended weekends.

Employee benefits

Employee benefits have a long-term effect on employee engagement and productivity.

By offering benefits such as housing, study, medical or vehicle allowances the employee will benefit more in the long run. These offerings must be placed on top of current benefits to have a real impact.

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Why do motivational incentives not last??

Looking at all the reasons given against money as a motivator idea can also be applied to every other form of motivational compensation.

Other forms of compensation are half-heartedly accepted by employees because no landlord will take payment in minutes, the vehicle that takes you to work does not run in seconds and your tummy will not digest hours too well. 

With the available bouquet of leave offered by law, most employees will extract their free time from there anyway. 

Sick leave is well abused to cover up for the time needed. 

 Time off will most likely have a negative effect on business processes if not managed well.

In the past, motivation was focused on company vehicles, subsidized housing, payment for studies, and medical and pension benefits. All these have become too costly for employers to maintain and even more so if the business expands dramatically.

With the taxes placed on these perks, it has become more of a liability than a reward, and money still triumphs as the only real motivator because it is a temporary reward.

Very soon employees will get used to it and see it as a right and not a beneficial offering from the employer.


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Conclusion - Does money motivate staff

Money will always motivate staff but like any other incentive to assist in productivity increases the effects fade quickly. As we have seen this problem does not only apply to money but to everything else related to personal finances.

If you want to get productivity through incentives you will have to be a little more innovative with your offerings.


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