Money Doesn't Motivate
Posted by Max Dunn Wed, 16 Sep 2009 23:10:00 GMT
Many business are built entirely around extrinsic motivators – carrots and sticks. That’s actually fine for many kinds of 20th century mechanistic tasks. But for 21st century cognitive tasks, monetary rewards just don’t work.
This has been confirmed over and over again. Dan Ariely found that when tasks called for even rudimentary cognitive skill, a larger reward led to poorer performance. The London School of Economics reports: “We find that financial incentives can result in a negative impact on overall performance.”
What does work? Autonomy, mastery and purpose. Find out more in this fascinating and important talk by Dan Pink on TED.