The New Science of Motivation

As leaders, we often struggle to retain our best people. Naturally, many of us turn to money to convince valuable employees to stay with our organizations. We think that as long as we pay our people well, they will be immune to the head hunter calling and enticing them to consider other opportunities.

However, fit leaders know that money is not the main motivator for most people. Yes, we have to pay people fairly based on their responsibilities and the level of work they provide. Once people are paid fairly and they feel like their basic financial needs are being met, money quickly loses its motivational power.

Trumping money, most employees want to feel like they’re working on something important. They want to feel like their organization, and particularly their boss, cares about them and is looking out for their professional goals.

People want to work on exciting, fulfilling projects. They want the freedom to create-and also the freedom to fail. Most professionals are looking for environments where they are appreciated and have an opportunity to excel.

If you appreciate your people and provide them with opportunities to grow and move through the organization at an appropriate pace, they are much less likely to say yes to a recruiter-even if that recruiter is dangling more money in front of them.

In Drive: The Surprising Truth About What Motivates Us (Riverhead, 2009), author Daniel Pink points out that an overreliance on carrots and sticks, or what we would call extrinsic motivators, can actually decrease employee productivity and engagement.

As a leader, focus on leveraging higher level rewards or “intrinsic” motivators. You can do this by creating an environment where your employees enjoy autonomy, have opportunities to achieve mastery and can commit to a common, lofty purpose. Together, these three factors will keep your people engaged, empowered and confident.