Studies have shown that for employees to be motivated, recruiting minimums must

be present. These include pay, working conditions and job security. Yes! Payment
is important but It's not the main motivator? Why?
1. Self-Determination theory: People prefer to feel they have control over their
actions. When organizations use extrinsic rewards as payoffs for superior
performance, employees feel they are doing a good job less because of their own
intrinsic desire to excel than because thats what the organization wants.
2. No matter how much you pay, you cannot motivate an employee who is not
engaged to his job. According to Job Engagement Theory.
3. Sometimes marginal benefit is often considered in terms of dollars, that doesn't
mean that cash is the equivalent of marginal benefit. That is, you can't just replace
other benefits with cash.
4. Studies continue to show that money is not the #1 motivation for work and that
employees are motivated (and stay with their companies) for the following
reasons:
1.Their work and contributions are recognized and valued. They feel
appreciated and part of a community.
2. They receive on-going feedback from their manager/supervisor, thus they
feel "in" on things. This creates trust in the workplace.
3. There are on-going opportunities for learning and professional
development. Salary ranks #4.
Sources:
1. The Leadership Challenge, James Kouzes and Barry Posner
2. 1001 Rewards and Recognition, Dr. Bob Nelson
3. Society for Organizational Learning, Peter Senge