Consider the difference between intrinsic and extrinsic factors of motivation. The former speaks to the internal—“I do something because I enjoy it or it’s interesting”—the latter to the external—“I do something for external rewards or to avoid negative consequences.”

In his TED talk —“The Puzzle of Motivation”—Dan Pink states that “there’s a mismatch between what science says and what business does.” In other words, science shows that increasing one’s salary can in some cases actually demotivate—something most businesses fail to understand and apply.

Now let me be very clear on one point before I go any further. I am not suggesting that payment for one’s work is off the table; you must always set an appropriate, reasonable, and adequate salary or wage. People will usually first consider the financial benefits when applying for a job based on the first two needs in Maslow’s Hierarchy. But once a fair pay scale is established, be very intentional in addressing intrinsic motivators for better performance. It may work with mules to incentivize with a “sweeter carrot” or threaten with a “sharper stick”, but people are made in the image of God with a creative predisposition. Most people desire to share their ideas and help make decisions; they want meaningful interactions at work that go beyond simple task performance.

Dan Pink also points out that motivation works differently for those with simpler tasks and those whose job involves creativity, decision making, and greater complexity. For jobs and tasks that involve mostly mechanical skills, extrinsic motivators and bonuses work well as would be expected; the higher the pay—the better the performance. But for jobs or tasks that call for greater cognitive skills—larger rewards actually lead to poorer performance. Dr. Bernd Irlenbusch at the London School of Economics went so far as to say that, “We find that financial incentives can result in a negative impact on overall performance.” In his TED talk, Dan Pink refers to Duncker’s candle problem to support this. So be careful if your only motivator is to up someone’s paycheck. Better to involve them in your business, make them a part of the decision-making process, and focus on other intrinsic motivators.

In my next post, I’ll dive deeper on intrinsic motivational factors, discussing the elements of autonomy, mastery, and purpose.