Money, does it motivate you?Posted by Nicole CoyneOn July 23, 2021

When asked “Does money motivate you?”, many people would instinctively answer yes. If you’d asked me this question many years ago, I probably would also have said yes. That if I was paid more money, I could be happier and more motivated.

If you were lucky enough to receive a pay increase, this “happiness” or “increased motivation” would seemingly happen. But for most people, after a few months they would tend to return to feeling frustrated, disgruntled or demotivated. Why does this happen?

I’d like to introduce you to a motivational theory called two-factor theory or hygiene theory, developed by Herzberg in the 60’s.

Herzberg said that there were two areas that need to be addressed when understanding what it takes to motivate people.

Firstly, motivation factors are things like engaging in meaningful work, being given added responsibilities, being involved in decision-making, learning new skills and being rewarded for work well done. These motivational factors tick the box for fulfilling our intrinsic or internal needs. They help us feel recognised, help us grow and confirm that we are adding value and achieving something great.

The second area he called the hygiene factor, which relates to areas such as salary, job security, fringe benefits or working conditions like safety and security. If these hygiene conditions are present, meaning these conditions are favourable for the team members, for example the business pays above market related salaries and offers flexible working hours, then they will be satisfied or have few complaints, but will not reach a level of higher motivation. If these hygiene conditions are not favourable, then they will result in de-motivated team members. Hence, the belief that money will motivate.

So when you or your team are looking for motivation, you have to look at both areas. Firstly, are the basic hygiene conditions favourable? If not, get that sorted. Once they are, it doesn’t stop there. You need to look at the motivational factors. What makes you feel recognised in the business? What gives you a sense of achievement, how do you know you are adding value and what improves your personal growth?

Herzberg came up with a great 4 combination grid, which helps to ascertain where your business may be sitting:

1. High Hygiene + High Motivation: The perfect situation where team members are highly motivated and have very few complaints. Their intrinsic needs are being met and the basic hygiene conditions are favourable.
2. High Hygiene + Low Motivation: Team members have few complaints but are not highly motivated. The job is viewed as a pay check. These businesses would have a high turnover of staff and low loyalty and trust within the team.
3. Low Hygiene + High Motivation: Team members are motivated, due to the quality and meaning of work, but have a lot of complaints. A situation where the job is exciting and challenging but salaries and work conditions are not favourable.
4. Low Hygiene + Low Motivation: This is the worst situation where team members are not motivated and have many complaints. High turnover of staff, with the business battling to recruit and retain.

So, the next time you think that money will motivate you or your team members, think about this theory. It may be a genuine issue and needs to be rectified, but don’t stop there. Perhaps think a wee bit further than just the money.