{"id":3630,"date":"2011-06-02T11:10:43","date_gmt":"2011-06-02T11:10:43","guid":{"rendered":"https:\/\/www.financial-fluency.co.uk\/?p=3630"},"modified":"2011-06-02T11:14:13","modified_gmt":"2011-06-02T11:14:13","slug":"financial-rewards-motivation-profi","status":"publish","type":"post","link":"https:\/\/www.financial-fluency.co.uk\/financial-fluency-blog\/financial-rewards-motivation-profi\/","title":{"rendered":"Financial rewards, motivation and profit."},"content":{"rendered":"
<\/p>\n
Money is clearly a motivator in the world but does it lead to increase profit?<\/p>\n
Certainly basic economic theory and practice in organisations would lead you to believe this is the case. <\/p>\n
If you don’t pay people enough they won’t be motivated……but can you increase motivation by paying more?<\/p>\n
An Academic study at MIT followed up by a wider study found the following:<\/p>\n
* Basic mechanical skills – increased financial reward leads to better performance (if – then rewards)<\/p>\n
* Once you get above rudimentary cognitive skill, where it requires conceptual creative thinking are required and financial rewards don’t matter
\nA larger rewards led to poorer performance<\/p>\n
This super video by RSA (Royal Society for the encouragement of Arts, Manufactures, and Commerce) takes a brilliant easy to watch look at what motivates workers to work the link to profit and how to take advantage of that as a business. The message clear and the animation is excellent.<\/p>\n