Payoff

1. Motivation is complex: Simple rewards often backfire

Whatever our official job descriptions, we are all part-time motivators.

Motivation is multifaceted. It involves factors like achievement, happiness, purpose, progress, relationships, legacy, and status. Simple reward systems often fail because they ignore this complexity. For example, experiments at an Intel factory showed that cash bonuses actually decreased overall productivity compared to no bonus at all. Pizza vouchers and compliments were more effective motivators.

Unintended consequences abound. Well-intentioned attempts to motivate can backfire by:

• Focusing too narrowly on easily measurable outcomes
• Undermining intrinsic motivation and goodwill
• Creating perverse incentives that encourage gaming the system
• Signaling a lack of trust in employees' commitment

2. Meaning trumps happiness in driving long-term motivation

When we are acknowledged for our work, we are willing to work harder for less pay, and when we are not acknowledged, we lose much of our motivation.

Meaning provides enduring drive. While happiness is fleeting, a sense of purpose and significance creates lasting motivation. This explains why people often choose challenging but meaningful work over easier, more pleasurable alternatives. Even in unpleasant circumstances, finding meaning can boost motivation and resilience.

Meaning comes from:

• Feeling part of something larger than oneself
• Making a positive impact on others
• Creating a lasting legacy
• Overcoming adversity for a worthy cause
• Connecting one's work to deeply held values

3. The IKEA effect: We value what we create ourselves

Just as my working hard on the IKEA chest of drawers increased my affection for the damned thing, our origami experiments showed that the more effort people expend, the more they seem to care about their creations.

We overvalue our own creations. Experiments show that people are willing to pay much more for things they've made themselves, even if the quality is objectively lower. This "IKEA effect" applies not just to physical objects, but also to ideas, projects, and relationships we invest effort in.

Implications of the IKEA effect:

• Involving people in the creation process increases their engagement and satisfaction
• Customization and personalization can boost perceived value
• Effort and struggle can actually increase attachment and motivation
• Leaders should provide opportunities for employees to shape their work and environment

4. Money is a weak motivator compared to purpose and recognition

At Intel, for example, we saw how paying people bonuses, in a shortsighted way, killed their motivation.

Intrinsic motivators are powerful. While money is important, factors like meaningful work, autonomy, mastery, and recognition often prove more motivating in the long run. The Intel experiment showed that a simple compliment from a boss was as effective as a cash bonus in boosting short-term productivity, and had a more positive long-term effect.

Non-monetary motivators:

• Public recognition and praise
• Opportunities for growth and learning
• Increased autonomy and responsibility
• Connection to a larger purpose
• Positive workplace relationships

5. Goodwill and trust are fragile yet crucial for motivation

It is relatively easy to create goodwill. All we need is an encouraging word here and there, a gift from time to time, and a sincere look in the eyes. But we also need to keep in mind that goodwill is fragile. Supporting it is easy, but destroying it is even easier.

Trust enables reciprocity. When employees feel trusted, they're more likely to go above and beyond their job descriptions. However, overly rigid contracts, micromanagement, and transactional approaches can quickly erode this goodwill.

Fostering trust and goodwill:

• Express genuine appreciation regularly
• Allow for flexibility and autonomy
• Communicate openly and transparently
• Focus on shared goals rather than individual transactions
• Demonstrate commitment to employees' well-being and growth

6. Long-term relationships foster deeper commitment and motivation

When we are committed and think long-term, we largely put aside our own agenda for the good of the family, and when we do so, wonderful things can occur.

Long-term perspective changes behavior. People invest more effort, trust, and goodwill in relationships they see as enduring. This applies to personal relationships, but also to the workplace. When employees feel a long-term commitment from their employer, they're more likely to be deeply engaged and motivated.

Building long-term commitment:

• Provide clear paths for growth and advancement
• Invest in employee education and development
• Offer comprehensive benefits that signal long-term care
• Involve employees in long-term planning and vision-setting
• Celebrate milestones and shared history

7. The drive for symbolic immortality shapes our actions and legacy

Whether you believe in the literal kind of immortality or not, it seems that we all feel a craving for some kind of afterlife—that we will be remembered after we're gone, even if all that remains of us is a lonely, symbolic grave marker that attests to the fact that we were once a living, breathing, and beloved human being.

Legacy motivates us. The desire to be remembered and to have a lasting impact drives many of our actions, from creating art to building businesses to raising children. This motivation often operates on a subconscious level but can profoundly shape our choices and priorities.

Manifestations of symbolic immortality:

• Philanthropy and creating foundations
• Pursuing achievements and breaking records
• Creating works of art or literature
• Building lasting institutions or businesses
• Passing on values and traditions to future generations

8. Intrinsic motivation matters more than we realize

When we are engaging in an activity (such as exercising), they cared most about intrinsic elements such as having a positive experience running on a treadmill or lifting weights. On the other hand, the researchers found that when people were planning to go to the gym, they cared most about extrinsic elements such as finishing the activity, getting healthier, and getting paid for their time.

We underestimate intrinsic motivation. When planning activities, we tend to focus on external rewards and outcomes. However, during the actual experience, intrinsic factors like enjoyment, challenge, and personal growth become much more important. This mismatch leads us to make poor predictions about what will truly motivate us.

Harnessing intrinsic motivation:

• Design work to be inherently engaging and challenging
• Provide opportunities for autonomy and mastery
• Connect tasks to individuals' personal interests and values
• Create environments that foster flow states
• Emphasize progress and learning, not just outcomes

9. Acknowledging efforts boosts motivation significantly

Acknowledgment is a kind of human magic—a small human connection, a gift from one person to another that translates into a much larger, more meaningful outcome.

Recognition is powerful. Experiments show that simply acknowledging someone's work, even without tangible rewards, can significantly boost motivation and productivity. This effect is often underestimated by managers and policymakers.

Effective acknowledgment strategies:

• Provide specific, timely praise for efforts and achievements
• Create rituals for celebrating milestones and successes
• Implement peer recognition programs
• Share employee contributions with the wider organization
• Tie individual efforts to larger organizational goals and impact

10. Social connections and positive emotions enhance workplace motivation

The groups in which the confederate was cheerfully enthusiastic or serenely warm displayed more cooperation and less interpersonal conflict, performed better on their main task, and distributed raises more fairly than the groups in which the actor displayed negative emotions.

Positive emotions are contagious. Research shows that the mood and behavior of even a single individual can significantly impact group dynamics and performance. Creating a positive social environment can boost motivation, creativity, and productivity across an entire team or organization.

Cultivating positive workplace connections:

• Encourage informal social interactions
• Design collaborative work spaces
• Implement team-building activities and rituals
• Train leaders in emotional intelligence and positive leadership
• Address negative behaviors and toxic personalities promptly

Last updated: January 23, 2025