The goal of effective pay practices in organizations should be to reinforce positive behaviours in support of the achievement of organization purpose and objectives. Current ‘compensation’ practices often do the opposite.
Herzberg argued decades ago, echoed by Daniel Pink today, that people are motivated by intrinsic factors and become dissatisfied with extrinsic (hygiene) factors. Extrinsic factors include
– Working conditions
– Policies and administrative practices
– Salary and Benefits
– Supervision
– Status
– Job security
– Fellow workers
– Personal life
The problem is that managers and organizations try to ‘motivate’ behaviour through the use of Hygiene Factors. Some people are in fact
For Frederick Herzberg true motivators are intrinsic, internal to the person:
– Recognition
– Achievement
– Advancement
– Growth
– Responsibility
– Job challenge
And chief of these is the work itself; people are internally satisfied by the opportunity to do something, to use their best talents in accomplishing something worthwhile even if only modest; these may vary from person to person and intellect to intellect, but essentially people have a need to ‘work’ for its own sake.
The intrinsic motivators that drive employee engagement go waaay beyond ‘compensation’.