Money Is a Motivational Factor, but It's Also a Stressor

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i'm wondering, from the research you've done, how to monetary bonuses play a role in our motivation to do our best work. Does it work? Does it not work? Yes, so s i think ther there's really no good evidence for its working, and all kinds of evidence for it not working. So when i pay you a high amount, yes, you want to get that amount, but you're also stressed. And it turns out that o your mind set off just afraid that you're not making this money is much, much stronger than before.

Dan Ariely: Payoff Dan Ariely is the James B. Duke Professor of Psychology and Behavioral Economics at Duke University and a founding member of the Center for Advanced Hindsight. His books include Irrationally Yours, Predictably Irrational, The Upside of Irrationality, The (Honest) Truth About Dishonesty, and his most recent book, Payoff: The Hidden Logic That Shapes Our Motivations. Key Points The things that motivate us are about accomplishment and achievement, not day-to-day happiness. Most people realize that they themselves are not truly motivated by money, but they still assume other people are completely motivated by it. Figure out a way to pay people that adds to the development of a long-term relationship, not a short-term transactional one. It is important to find a way to connect people’s jobs to the final outcome of their work, because many people don’t feel connected to their organization’s main purpose. Resources Mentioned Payoff: The Hidden Logic That Shapes Our Motivations* by Dan Ariely Predictably Irrational* by Dan Ariely Drive* by Daniel Pink Dan Ariely's website Book Notes Download my highlights from Payoff in PDF format (free membership required). Related Episodes The Surprising Truth About Influencing Others, with Daniel Pink (episode 84) Create the Best Place to Work, with Ron Friedman (episode 181) What to Do When Somebody Quits, with Molly Moseley (episode 251) New Management Practices of Leading Organizations, with David Burkus (episode 253) Employee Engagement With Management 3.0, with Jurgen Appelo (episode 276) Discover More Activate your free membership for full access to the entire library of interviews since 2011, searchable by topic.