Performance Of Employees

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money is a good overall motivator, but its main role is to induce people to do the work for which they were initially hired. According to management theorist Frederick Herzberg, fair salaries are considered a 'hygiene' factor of the workplace (Neslon, 1996). Other 'hygiene' factors include adequate workspace, temperature control, and office equipment (Nelson, 1996). These factors provide the means for employees to do their jobs, but not the best job possible. The extra effort stems from the way they are treated by their superiors.
When bills and expenses are not out of control and money is not necessarily needed right away, employees perceive other factors as having much greater significance on their motivation. They want to know that they are making a worthwhile contribution, have a manager that tells them when they do a good job, gain the respect of their peers, and be informed about what is going on in the company at all times (Nelson, 1996). These desires of the ...

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for a different company or division that does not require such high levels.
Other research has shown that money is not the greatest motivational factor. There are studies that date back to the 1940s, concluding that employees ranked other factors, "such as being shown appreciation for work done, feeling 'in' on things and having interesting work, as being more important than their salaries" (Nelson, 1996). The 1994 National Study of the Changing Workforce found that respondents ranked open communication as the most important factor in selecting one's current job (Nelson, 1996). In a 1996 national survey, "limited praise and recognition" was the number one reason employees left ...

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