---

Guest post by: Seth Godin Become an Author

Tweet

---

---

A. "It's not about the money."

Usually, when people say this, they are lying.

Except, it turns out, at work.

Money, it's been shown time and time again, is a demotivator. I'm not talking about a fair or even generous salary. Being a cheapskate is no way to find a great employee. But once people have joined your team, incremental money--bonuses and the like--usually demotivate people. They demotivate because sooner or later, people feel as though they're being treated unfairly.

One guy gets a $10 bonus. The person sitting next to him seethes for weeks, while the bonusee forgets it soon enough.

A sales rep gets into a fight about a commission... and remembers it long after the moment is gone.

People who really and truly love their jobs are in every single industry. And people who do great work because they love their jobs are paid at every salary level. What they have in common is a boss that gives them respect and freedom and responsibility. A boss that listens when they have something to say. Which, not coincidentally, is exactly the way the best companies treat their customers, too.

Cutting your prices doesn't build customer loyalty, and paying a bonus doesn't build employee loyalty.

If I had money to spend on a bonus, Mr. question writer, I would invest it in allowing each of my employees to try a small project (Google style) with no strings attached. Giving fairly-paid people your trust and the freedom to grow is worth a lot more than $50.

[n.b. all bets are off when the topic is sharp-edged salespeople. Just as some stores (woot, for example) work hard to attract the money-focused shopper, there are some jobs where a razor-sharp commission structure is exactly what your people--and you--want.]

Related Articles

  Small Businesses – the AIG Antidote
  Science Daily Week: Which is more effective: bonuses or raises?
  Ways To Improve Sales Through Your Website
  Live From JV Alert Does Your Copy Follow This Proven Sequence
  How Your Offer is Like Dinner
  Four Ways to Waste Your Employee Recognition Budget
  Keep Them Hungry: Innovative Bonus Plans for your Best Employees
  Keeping Your Variable Compensation Programs in Compliance with the FLSA
  5 Ways to Beef Up Your Irresistible Offers with Juicy Bonuses
  What Makes The Best Affiliate Marketing Sites?
  Ask the Expert: Partner and Alliance Manager Compensation
  The Latest Tools to Grow Your Sales Force
  'Tis the Season...for Employee Relations Nightmares?
  Thanks For Accepting My Facebook Friend Request, Now Accept My New Business Opportunity. Did You Hear Me? Do It NOW.
  Keeping Online Customers Away From Your Compettition
  Employee Recognition Programs: Making Gifts More Meaningful (Tip #39)
  The Top 6 Ways to Violate the FLSA
  7 Ways to Drive Away Your Blog Readers
  Why Select The Selling Profession As Your Career Choice? ... Part 3 of an 8 Part Series
  Choosing the Right Coach

Related Forum Posts

Does Giving Away Too Much Cheapen Your Product?
Not Sure But...
Re: Does Giving Away Too Much Cheapen Your Product?
Re: Best incentive to offer employees
Re: Gap Between Rich and Poor Widens

Share this article. Fund someone's dream.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

The Secret to Resolving Workplace Conflicts

10 Golden rules to survive the Global Crisis

Ten Things You Can Do To Be a Better Leader

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.