Is money an effective tool of motivation?

Money is need of hour, especially when recession has taken over the world economy. It has played a vital role in getting an employee hooked to an organization. If pay is good and keeps increasing steadily year on year, it persuades people to work for the organization for a long time.

Is money really a good motivator? It’s a question very often asked to employees. Many employees feel money is crucial to meet the daily and extravagant needs of life. A good house, automobile, children’s education, food and travelling can be met affordably where employee is receiving good salary. Perks and allowances are excellent supplements to support life-style.

However, some don’t consider money as an effective motivational tool. It can buy the material needs of life but what about status, promotion and ambition. An average employee always thinks about climbing the ladder of the organization. He wishes to achieve a significant status in the eyes of public. Some feel ambition would rule the roost only where it’s possible to reach the top and let the world know about you.

Non-monetary rewards have become the prime priority in life. Promotion on a consecutive basis with the chance to get the best facilities and amenities from company motivates the employee to improve self in every aspect of work area. Innovations are explored and put into application. Team spirit and timely execution of work schedules are taken into consideration. It is checked whether power to mix and lead the group in an effective manner is possible or not.

Encouraging the employees through awards and honors gives pleasure and a reason to improve accordingly. Recognizing the efforts and duly compensating for those efforts helps in enhancing the work-improvement. The token of appreciation has a heartening effect that could induce anyone to put whole-hearted effort in work.

Money has always played a role in meeting the immediate needs of life. However, encouraging employees through non-monetary benefits could give long-terms return to the company.