Wednesday, June 25, 2008

Don't Show Me the Money

I think a lot of people mistakenly assume that economics is only focused on money as a motivational tool. That may be where a lot of the attention goes, but an economic viewpoint is fundamentally about people responding to incentives. And, in many cases those incentives are non-monetary.

Here's an article from strategy+business that indicates employee productivity may be more responsive to changes in areas not related to compensation.
Over the past 10 years, we’ve conducted an in-depth study into the attitudes of more than 100,000 shift workers at more than 150 companies around the world. Through face-to-face surveys taken during work hours, we sought primarily to gather information about what employees like and dislike about their work environment, the changes they hope to see, the health and safety issues they face, and how their work schedules affect their personal lives. Of all the thousands of pieces of data we collected, one stood out: Eighty-one percent of employees surveyed felt that their pay and benefits were adequate. In fact, when we determined what really affects productivity, compensation paled in comparison to good management–employee communications. In other words, although most companies try to inflate employees’ morale by shoveling more dollars at them, less expensive strategies will do.


  1. Of course, it might be that "shveling money" at people is actually cheaper than remaking management so that it's effective...

  2. In my view our focus should be in doing right things, as that will allow us to get success, it is the secret that will help us achieve money, but if we run after run then we won’t get it. I work in Forex with one motive and that’s to do hard work which is going to be enough for me to get results in my favor. I work with OctaFX broker and they help me big time given their quality service with low spread of 0.2 pips, high leverage up to 1.500 plus much more.