How Money Can Hurt Employee Motivation [INFOGRAPHIC]

Think money motivates your employees? Sure. But it’s not the biggest motivator.

Many entrepreneurs believe that digging into their pocketbooks will help drive employee engagement, but the reality is that 67% of workers say praise and commendation from a manager is what truly motivates [Tweet This] (vs. the 52% who say an increase in base pay does the trick.)

Instead, consider making quality time with each employee a priority, pick up a personal tangible gift, offer a high five or fist bump, tell them they’re doing a great job or pitch in on a task. Connect with them. They’ll respect you more and work harder as a result.

This infographic takes a look at the truth behind employee engagement and how you can motivate your workforce without reaching into your pocket.

42% of the global workforce says they’re disengaged at work. [Tweet This]

90% of leaders say employee engagement is essential to their businesses. [Tweet This]

75% of leaders do not have an employee engagement strategy. [Tweet This]

Money and Employee Motivation

What do you do to motivate your employees? Share with us below!

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  • Traumdoc Uwe Alschner

    At our Firm we find out the five things people most want to do, see, or experiece. It is what really matters to them. It is what John Strelecky named the Big Five for Life. As an employer, I need to know them as well, togehter with my Purpose for Existing. Both, the Big Five and the PFE need to be aligned to what my business is all about. If there is no connection, then it will be impossible to live up to my potential. Consequentially, not knowing what matters to me means not being able to reach what I could reach if I knew. It means to lose productivity, and profit.
    If I know my Big Five for Life there is the chance to link them (or some of them) to what I do as a Job. Maybe it will mean to allocate different people to different jobs. If you are just starting up, then the world is yours if you heed this principle:
    Always know your purpose and the five things you most want to do, see, or experience. Your business will be one of them, or even connected to many of them. If not, don’t start at all. Do not embark on a mission which isn’t yours!

    • Dan Martell

      That’s amazing advice and totally get the principle. Thanks for leaving such a thoughtful comment.

      Just watching the video now.


  • Jeremiah Lee Cohick

    I agree that money is not the only important factor for employee happiness, but you failed to show how money *hurts* motivation.

    • Dan Martell

      Jeremiah, good point.

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  • conceptsguy

    Great post! We’ve just started working in ROWE format (Results Oriented Work Environment This was motivated by Dan Pink’s “Drive”. The team seems to be thriving here, and finding ways to push themselves to learn new a better ways to work together. We’ve pushed our team to create a culture of learning where they are constantly growing their skill sets and expertise. We’ve had more interest to join the team the more we talk about this culture.

  • brad

    Your five ways to motivate employees are stolen from “the five love languages.”

  • Harold Gardner

    I get your point, but I also see opportunities to use cash for motivation. Managers use sales contests because they work. Winning the contest is big, but taking the losers out for a beer with that won c-note is a ton of motivation.

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  • singh

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  • Dasha Golubeva

    According to our recent survey on work styles, top three productivity motivators at work are sense of responsibility (increases productivity for 77% of respondents), good mood (57%) and a possible reward (42%). So, a reward only ranked third. We also compared whether it’s a more powerful efficiency trigger for male or female workers. And the result is that a prospective reward inspires almost 46% of men and only 35% of women (

  • Johan Pathak

    I get your point,
    I agree that money is not the only the important factor for every employee
    happiness, but you failed to show “how money loose motivation.”
    Thanks for leaving such a thoughtful comment. Here I want introduce you Enjoy
    an Amazing 2-day Experience that gives YOU the Practical Skills &
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  • Riya Malhotra

    Employee motivation is equally important for the success of any organizations. The reason being that employees are in a way supporting figures.

    Here i agree that just paying off few more bucks does not fulfill the motivational need of the employees.There are other factors that add to their happiness and satisfaction.