Management Training Courses:
Why Money Doesn't Motivate Part 2
The second part of "Employee rewards myths busted 1: why money doesn't really motivate" explains what needs can be fulfilled with money, and which can't. Money serves people for survival and subsistence needs, but it can only play an assistant's role in achieving one's higher aims in life.
What needs money can fulfill
Maslow places money with the deficiency needs, meaning that it serves to see that one has food and warmth, as well as providing shelter and safety. It basically means that it allows you to survive, and to have a decent living. I would add to this the basic commodities that we take for granted to day that constitue a decent living: a place to stay, a fridge, a shower, and also a TV, travel, gifts.
What needs money can't fulfill
Money can partially fulfill one's need for belonging to a social group, by allowing one to participate in activities that you need money for. It won't automatically make you belong though - more is needed for that. You can be the richest person in the world and still have the feeling that you don't belong to a social group.
To a degree, money can raise one's even higher need for self-esteem but, as James L. Hayes put it, 'only for a short time and only as long as it serves as a measure of worth or of power or of victory'. Maslow speaks of achievement, mastery and recognition. So money can be a temporary symbol for one of these things, but it doesn't fulfill the need out of itself. It also means that whatever motivation someone gets from a bonus or reward, it fades quickly and can just as well be achieved by other, cheaper means.
As for self-actualisation, this has nothing to do with money - it's about pursuing your talent and being creative. Money can be a means to self-actualisation, but it can't be the self-actualisation itself.
What that implies for worker motivation
People need more in their life than survival. Higher needs that are more subjective and harder to pin. Giving people money might make them feel better for a while because of the other needs it will allow them to fulfill. But it isn't enough to fulfill someone growth needs. Money will get a person out of bed in the morning because they need to pay the bills - but no amount of case will permanently turn someone into motivated, fulfilled person. However much you pay them.
Ben Ball:
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