““Financial incentives are Financial incentives are one ofone of the most the most

effective motivators of effective motivators of behaviorbehavior””

Money is a MotivatorMoney is a Motivator

When behaviors are followed by When behaviors are followed by money, they will be repeatedmoney, they will be repeated

Employees will do the things they are Employees will do the things they are rewarded forrewarded for

Employees will ignore the things that Employees will ignore the things that are not rewardedare not rewarded

What is supported with money is What is supported with money is given greater weightgiven greater weight

Nina Gupta-Jason Shaw

Money Motivates Top Money Motivates Top EmployeesEmployees

High achievers prefer pay for High achievers prefer pay for performanceperformance

High performers want systems that High performers want systems that differentiate individual performancedifferentiate individual performance

Overall, Pay incentives increased Overall, Pay incentives increased productivity by 30%productivity by 30%

Financial incentives had the largest Financial incentives had the largest effect on productivity of all effect on productivity of all interventionsinterventions

Rynes, Gerhart, Minette

Money is a Self Money is a Self Reported MotivatorReported Motivator

Employees are more likely to under Employees are more likely to under report than over report the importance report than over report the importance of pay as a motivational factorof pay as a motivational factor

Studies of actual behavior show pay as Studies of actual behavior show pay as the most effective motivatorthe most effective motivator

A study of 2,500 employees found that A study of 2,500 employees found that money was unanimously the #2 money was unanimously the #2 motivatormotivator

Rynes, Gerhart, MinetteS Caudron

Money Impacts Career Money Impacts Career ChoicesChoices

People are not always honest in exit People are not always honest in exit interviews about their reasons for interviews about their reasons for leavingleaving

Pay was given as the top reason for Pay was given as the top reason for the the ““willingness to accept a positionwillingness to accept a position””

Rynes, Gerhart, Minette