Money is not as motivating as we think

stuffWe all know that when it comes to motivating people the higher the monetary reward, the better the performance. That’s why we have things like workplace bonuses and commissions.

In 2002, Daniel Kahneman won a Nobel Prize in economics, proving us all wrong. What Kahenman found was that although financial rewards are effective in repetitive, monotonous tasks, they actually hinder the thinking process in more creative activities. Since then, a number of supporting studies have also shown the higher the monetary reward, the poorer the performance.

There are implications here for reward schemes in market research. If in your research you can foster feelings of autonomy, purpose and worth (and place lesser emphasise on extrinsic rewards such as cash) you’ll get more enthusiastic participants and better quality contribution. Now that’s research that will bring you those insights!

The Surprising Truth about What Motivates Us:

Author: Teri Nolan

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