Question

Money always motivates employees. Discuss this statement with examples.

Answer 1

Motivation is one of the important tools that help in improving employee performance and organizational development. The organization is always looking at the methods and steps to motivate employees so that they can bring out the best from the employees. Motivation and inspiration are essential for an employee to perform better with a free mind. There are so many factors that affect employee motivation in the organization. Money and Job satisfaction are two important factors that motivate employees.

It is the employer's job how to motivate the employee in different situations. Every situation is different for employees and employers.

Money as Motivator for Employee:

Money is one of the most important motivators for employees in the organization, but not the only factor. Yes, money always motivates employees, but for the short term.

- We are in a society where success is counted in terms of bank balance, which car you have, a small or a big house, stylish clothing, etc. We need money to fulfill these needs and impress others. On the other side, money is an important factor when it comes to family safety and security. Everyone wants to make his family safe and secure that everyone prefers money in certain situations. Money is the indicator for comparison with others in society. Money is important for employees to get financial freedom and achieve financial goals.

- Yes, Money is a fuel that enables employees to work hard. The employee feels safe in terms of financial freedom he could achieve from money. He thinks better that he has enough money for his family. It makes them free from tension, anxiety, sadness, etc, so they can give their better performance in the organization. They can come up with better ideas to solve major organizational issues, they would be creative and innovative in their work.

- As per Maslow's needs hierarchy theory, physiological needs to fulfill at the first step, to fulfill physiological needs, we need better pay for our work done. Monetary rewards are the best motivators for employees in many aspects, but only for the short term.

- But Money is one of the motivators in many situations. The young generation has no or less experience, they are not able to set priority. Money can motivate these employees when they are fresher. But that also for a shorter period of time.

When money is not a motivator:

Money motivates any employee if it is given for better job performance. Money is a motivator for better job performance but not for job satisfaction in the organization. When the employees are paid enough, it is no longer a motivator at the organization.

-For the long term, money alone can not motivate employees. Money is a standard expectation from any job that an employee will think about first. Money helps the employee in making a decision on whether he should join the company or not. Every employee wants a salary that he deserves according to his job profile, experience, education and risk availability in the job.

-Money is an extrinsic type of motivation that always has less power than an intrinsic type of motivation.

- The intrinsic type of motivation consists of Development, recognition, progression, Work environment, better colleagues that are the better motivator than money after some time in the organization.

- Employees want to work with a successful team and want to see their name as a team member of a successful team.

- Job Satisfaction is one of the best motivators than money when an employee performs better due to satisfaction in their job and organization. They want to recognize themselves in the best performer list of the organization.