Does pay affect performance?


Everyone works to survive first. The problem is people can’t really get started on other motivations until necessities are met.

Once the basic necessities are met, then motivation will change. Do a bit of research into Maslows hierachy of needs. Another interesting conversation about motivation can be found in Daniel Pink’s book “Drive”

How effectively and directly pay affects performance will depend on the persons own needs/wants.

There are many situations where pay is a great motivator towards performance.

I worked a piece rate job just after graduating from Highschool in 1988. I was able to make up to $20.00 an hour where my peers doing the same work were making $4 to $5 dollars an hour.

Pay was a great motivator for me. I was definitely hungrier than the $4 and $5 dollar an hour folks.

I have been studying the effects of pay on performance for 15 years.

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