There are a number of motivating factors beyond salary that motivate people. This link is to a video where Andy Mulholland discusses three things that motivate beyond a salary. These three things are to expand skill sets, do interesting work, and (most critically) recognize the worker. These types of discussions are often interesting for me as it assumes that workers are paid enough to have enough security to worry about interesting work or even being recognized. As I've mentioned before, I can't eat good feelings. Telling me I did a wonderful job and giving me an award does not pay my electric bill. You know what pays my electric bill? Money. As income inequality widens in the US to levels not seen since the Great Depression I think the discussion needs to stop focusing on intangible motivators and get back to helping people pay their bills. The real wages of the American worker are lower now than they were in the 1970's. Want to know why the guy at Wal-Mart could care less about your problems? His food stamps just got cut and his daughter's school no longer has funds for low-income lunches. Quite frankly the whole idea of providing interesting work, expanding skill sets, and recognizing people is insulting in an atmosphere where people with full time jobs need to rely on SNAP to feed their children.
Now, assuming that you are in job where your basic needs are met and you are able to possibly save money than yes; these three motivators become more important to the worker than basic pay. The speaker has a point, overpaying people will not make them happy with their jobs in the long run. I agree with that statement. Providing interesting work and expanding skill sets tend to go hand in hand. Workers will want to learn as they grow. However, as people take on more and more responsibility they expect to be rewarded for it. Recognition is one form of reward. Pay increases are another. It is my opinion that organizations are looking for any excuse they can find to not pay their workers. There are exceptions. Costco does very well and pays decent wages. The other firm listed here (Great Little Box) is raising wages at the bottom and providing promotions and incentives. I am going to quote at length from the link above. These are the take-aways from Costco and Great Little Box.
"1. Understand who performs the majority of the essential work. At professional services firms, this may be lawyers or paralegals; in surgical clinics, this could include surgeons, nurses, technicians, paramedics, and individuals preparing the operating room; and in manufacturing, those working on the factory floor clearly carry out most of the essential work.
2. Realize that the firms’ success depends on the quality of the work performed by the majority of workers. Remarkably, few firms currently design their organizations to optimize the efforts of employees at the bottom of the corporate ladder—even when these employees are central to the firms’ ability to add value. At Costco, the sales staff was instrumental in ensuring the high-quality shopping experience that would draw customers to return. At Great Little Box, the company beat competitors because of its ability to respond rapidly to customized orders.
3. Recognize that the quality and productivity of employees at the bottom of the ladder depend on whether these employees are motivated, healthy, adequately rested, and well-prepared to carry out the tasks they are asked to perform.Employees at Costco were motivated to work harder and perform better by a combination of higher wages and opportunities for promotions. Great Little Box employees had a direct financial stake in the company’s performance.
4. Realize that line workers are often the ones who know best how to increase efficiency. Great Little Box benefited from suggestions from line workers that led to cost savings and greater flexibility in production. Managers at Costco had a better understanding of how to improve production because most had served as hourly workers. "
Go back and read number three again; "motivated, healthy, adequately rested, and well-prepared..." It sounds like these companies are making both my point and Mr. Mulholland's point. These organizations are experiencing great success by A) Paying living wages...not minimum wages AND providing benefits. B) Utilizing the three principals of interesting work, expanding skill sets, and recognition. You have to have both.
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