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Description
All of us want to see our team-members engaged and happy about work. In the urge to stimulate the performance, companies raise the salaries only to find out that at some point money stop motivating people. But research shows that rewards shouldn't typically be used explicitly and deliberately to try to motivate employees to do work tasks.
Here are some interesting findings to consider when evaluating your compensation system:
- Tangible extrinsic rewards decrease intrinsic motivation for rewarded activity
- Rewards that were unexpected and given to people as a kind of unexpected bonus don't undermine intrinsic motivation. Both positive feedback and unexpected reward serve as an acknowledgement for good performance.
- Competition undermines intrinsic motivation, especially if there is pressure to win.
- Providing people with choice about how to do their activities leads to increased intrinsic motivation for this activity.
- Rewards that are given to people for showing up that do not affect the target activity didn't undermine intrinsic motivation
- When authorities acknowledge feelings and perspectives of their subordinates, these subordinates evidence greater intrinsic motivation, as well as fuller internalization of the activities that are not inherently interesting for them
From Deci, Ryan "The importance of universal psychological needs"