I recently came across some compelling statistics: 65% of managers believe that money is the most effective means of motivating employees, yet only 18% of employees felt the same way. Moreover, on the employee side, boosting morale and recognition both ranked higher on the list of motivators – at 32% and 27%, respectively.
Clearly, there’s a disconnect between management and employees, but why can be a little more complicated.
David Pink, author of “Drive: The Surprising Truth About What Motivates Us,” asserts that the old model of motivation – rewards and fear of punishment – is no longer relevant to the largely intrinsic needs of the modern worker. Today, employees are much more driven by the need to be self-directed (autonomy), the want to self-improve (mastery), and the desire to contribute (purpose).
These needs are rooted in some pretty solid psychology.
In 1943, Abraham Maslow released a groundbreaking study examining the psychology behind human motivation. His “Hierarchy of Needs” identified five basic motivating factors, and ranked them according to how psychologically fulfilling each factor is.
At the bottom are your physiological needs. These are the basic functions of living. Breathing. Sleeping. Eating. Drinking. They’re definitely motivating factors, but, for the most part, they’re kind of in the background like virus software on your computer.
Above that is the need for safety. Not just your personal safety, but also economic safety. Economic safety needs can be expressed in the preference for job security, health insurance policies, savings accounts, and pretty much anything else that covers the “what if”s in life.
The third tier is the need to love and belong. Humans are social creatures. So the need to connect with others is even stronger than, for instance, the need to swim in a pile of cash Scrooge McDuck style.
The fourth tier is where you really get to the heart of what motivates people: Esteem. Esteem is based on respect: self-respect and the respect of others. People need to feel that others value them. They need to feel that their managers appreciate their efforts and that the work they do is contributing to a greater common goal. If you’ll remember the opening statistics, 27% percent of responders said that recognition is their biggest motivator. Breaking down esteem even further, people feel the most fulfilled through competence, mastery, self-confidence, and autonomy.
At the top of Maslow’s hierarchy of needs is self-actualization. While you can help facilitate these needs being met, it’s not something you can give your employees. Self-actualization is based on being the best individual you can be. Ways an employer can help facilitate this? A flexible work schedule, development opportunities, and time off.
So think about how you motivate your employees to perform. Rather than throwing fistfuls of cash at them, consider a motivator that will feed their psychological needs.

Even superheroes need sidekicks. While she’s not quite ready to throw on the unitard and mini-cape just yet, Aimee Brock (aka Jill of All Trades) shares her expertise with readers in this week’s Reman University. How do you motivate your employees? She’d love to hear it! Share with Aimee via email.