Motivation Research:
Understanding What Drives You
by Kevin Hogan
Motivating someone to action is, in most cases, the same as persuading them. Some would argue that persuasion is about attitude; and motivation is toward an action.
I'm not going to cut that fine point today.
Instead, I want to show you reports on three studies that recently came in.
In the first, you find out whether giving bonuses is more effective at motivating employees than giving them merit raises. (You can see how that maps over to things other than money, yes?)
In the second, you get to see if avoiding punishment is its own reward. (That's one of the big keys in marketing and selling, right?)
In the third, you'll read a fascinating report where one of my favorite researchers, Steven Reiss, says that there is no such thing as intrinsic motivation. (In future, we'll talk about how important that is for you and me to "know", or at least consider.)
Motivators: Bonuses or Merit Raises
Giving a 1 percent raise boosts employee job performance by roughly 2 percent, but offering that same money in the form of a bonus that is strongly linked to a job well done can improve job performance by almost 20 percent (!), finds a new Cornell study on the relationship between pay and performance.
"I looked at both how much people are paid and also how pay increases and bonuses are given," said Michael Sturman, associate professor at Cornell's School of Hotel Administration, who conducted the study.
He found that "by changing the strength of the pay-for-performance relationship [awarding bonuses], you can improve performance by up to 19 percent."
In other words, giving someone a 1 percent raise is 1/10 as effective as giving them a one time bonus of the same amount of money. The raise would likely carry into the future, of course, and a bonus is a one time only deal.
Sounds like a slot machine. That which is random sometimes is more driving than that which is a sure thing. That shouldn't be the case...but...
When Sturman looked at the experience of a diversified services company, he found that an across-the-board raise in one year meant better performance in the following year and that paying above the market also produced higher performance.
"While both across-the-board raises and bonuses improved performance, bonuses stood out when pay was linked solidly to performance," he said.
Sturman noted that he studied only one company that had almost 700 employees working in the United States. "The point is, pay methods can be used strategically to improve performance," he concluded. "The payroll is not merely an expense to be reduced, but an investment that can be used strategically."
The study, "Using Your Pay System to Improve Employees' Performance: How You Pay Makes a Difference," is available at no charge from the Cornell Center for Hospitality Research
Is avoiding punishment its own reward? ...
Avoiding punishment (pain)...rewarding?: Page | 1 | 2 | 3 | 4 | 
Kevin Hogan
Network 3000 Publishing
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Eagan, MN 55123
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Photos appear under license with Stockexpert.
