Study Finds Money Isn’t Everything to Workers

Study Finds Money Isn’t Everything to Workers

World At Work

Study Finds Money Isn’t Everything to Workers
March 20, 2009 —

If desperation breeds innovation then a recession is the perfect time for managers to think of ways other than money to motivate employees. Two recent studies that examined nearly 1,000 employees by New York University-Stern School of Business Professor Steve Blader explored how organizations can motivate workers.

“When the economy sours and corporate bottom lines suffer, organizations must rely on employees more than ever to go beyond the call of duty,” Blader said. “A key influencer of employee performance is the employee’s sense of being included in the social fabric of the organization. And this holds true in bear markets.” The research identified several employee motivators:
- treating employees with respect
- making decisions that affect them in a fair way
- providing them with good wages and benefits.

According to the studies, the most beneficial impact on employee performance is an increase in wages and benefits when it makes employees feel valued. The studies authors said this implies that an increase in pay will not likely incentivize a worker in cases where he/she receives the increase after threatening to leave or when his/her contract stipulates when and how much raises will be.


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This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.