2. ““Financial incentives areFinancial incentives are
one ofone of the most effectivethe most effective
motivators of behaviormotivators of behavior””
3. Money is a MotivatorMoney is a Motivator
When behaviors are followed by money,When behaviors are followed by money,
they will be repeatedthey will be repeated
Employees will do the things they areEmployees will do the things they are
rewarded forrewarded for
Employees will ignore the things that areEmployees will ignore the things that are
not rewardednot rewarded
What is supported with money is givenWhat is supported with money is given
greater weightgreater weight
Nina Gupta-Jason Shaw
4. Money Motivates TopMoney Motivates Top
EmployeesEmployees
High achievers prefer pay for performanceHigh achievers prefer pay for performance
High performers want systems thatHigh performers want systems that
differentiate individual performancedifferentiate individual performance
Overall, Pay incentives increasedOverall, Pay incentives increased
productivity by 30%productivity by 30%
Financial incentives had the largest effectFinancial incentives had the largest effect
on productivity of all interventionson productivity of all interventions
Rynes, Gerhart, Minette
5. Money is a Self ReportedMoney is a Self Reported
MotivatorMotivator
Employees are more likely to under reportEmployees are more likely to under report
than over report the importance of pay asthan over report the importance of pay as
a motivational factora motivational factor
Studies of actual behavior show pay asStudies of actual behavior show pay as
the most effective motivatorthe most effective motivator
A study of 2,500 employees found thatA study of 2,500 employees found that
money was unanimously the #2 motivatormoney was unanimously the #2 motivator
Rynes, Gerhart, Minette
S Caudron
6. Money Impacts CareerMoney Impacts Career
ChoicesChoices
People are not always honest in exitPeople are not always honest in exit
interviews about their reasons for leavinginterviews about their reasons for leaving
Pay was given as the top reason for thePay was given as the top reason for the
““willingness to accept a positionwillingness to accept a position””
Rynes, Gerhart, Minette
7. Money Impacts CareerMoney Impacts Career
ChoicesChoices
People are not always honest in exitPeople are not always honest in exit
interviews about their reasons for leavinginterviews about their reasons for leaving
Pay was given as the top reason for thePay was given as the top reason for the
““willingness to accept a positionwillingness to accept a position””
Rynes, Gerhart, Minette