Nonmonetary Incentives and the Implications of Work as a Source of Meaning (aeaweb.org)
From a research paper [PDF]: Many workers care about more than financial compensation in their job. Nonmonetary incentives often matter, too. A firm's mission and the design of one's job can create meaning and purpose for employees. As a result, firms will have reason to care about meaning of work. We believe economists can usefully contribute to the debate about the implications of meaningful work. We are not arguing that financial compensation is unimportant. Lazear (in this volume) provides an excel- lent review of monetary incentives in certain organizations. But we believe that in order to manage modern organizations and understand the future of work, studying workers' nonmonetary motives will be crucial.
Good managers are rewarded for retaining and motivating people without paying them anything else. (Early in my career I was told by managers that I was "hard to read" or that "they weren't sure what fired me up"; that made the "f u pay me" conversation easier.)
Why is it so difficult for economists to acknowledge that people may and do derive value from things other than money? Psychologists have been showing this for decades now. There is an abundance of research on both sides of the coin. On the one hand, people may totally not care about money when they, for instance, work on things they find interesting and which aligns with personal values. On the other hand, the argument that monetary incentives undermine core values is also not true when money aids people in doing what they love (e.g., steve jobs and apple).
Are economists afraid that when they admit that non-monetary cues are valuable to people the world economy collapses?
This sounds like a white-collar issue, of which most slashdot readers are. But ask any blue-collar worker if incentives are worth more than money and the expected answer will be obvious.
https://youtu.be/FFrag8ll85w?t...
outside the top 10-15% of jobs. I mean, we have nurses striking because their pay is too low, something I don't think I've seen in 30+ years.
This would be an interesting conversation if we had single payer healthcare. More so if we had basic income. In other words if all or a majority of people had their basic needs met. But in a country where 45,000 people die every year and overtime pay isn't guaranteed anymore this comes off as a bunch of managers trying to figure out how they get can 80 hours of value for 40 hours pay.
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Many workers care about more than financial compensation in their job
It'd be nice to be thanked for working our fucking balls off for the sole benefit of the company execs and shareholders yeah.
But let's not forget work is simply a means to survive, nothing more. Those that define their lives by working are in the minority and are, to the rest of us at least, borderline insane. We toil for our corporate masters in return for money which is then given to other corporate masters in return for making our lives pleasant.
Compensation is important.
But as they say, find a job you love and you'll never work a day in your life.
Getting paid a few percent more to go to a job I hate? No thanks.
Compensation is the only reason I ever have worked.
This kind of article seems to be arguing that management can appease appalling work conditions with a pat on the back, not actually rewarding them for accomplishments.
That being said, working with people you like and respect makes work less stressful and sometimes even fun.
If you're getting paid poorly, with people you would happily kill if you could only get away with it, it's probably way beyond time to leave.
Is there anything else beyond the dream of "making it" shown over and over again on media, and then, the dream never becomes true and the compensation patterns set in... just not to admit that one has been just screwed over for good?
...
There may be other countries where actual research is done on human fulfillment and happiness, in the US, in case you ever tried?
Result: Chastised, not taken serious, outcast suspected of "nastiness" and what else have you....
Look at the homeless - humans born to this planet like you and me, just not able to make it or destined for failure from - any reason is good for justification -
Will see what happens in the coming decades with the earth-ship turns quicker and quicker into the vortex of self-destruct... maybe ready for another try?
My guess: Too late honey, missed the train...
I gladly accept stock options, company car, company jet, real estate, rare metals, free vacations, use of yachts, hookers and other perks just like our bosses.
I don't care about the purpose. I want to know the reason.
In individualist capitalist societies, all social structures are broken. Nations, tribes, friendships, romances, families, it all breaks down. The only social institute that remains is work.
This causes people to seek purpose in their work, to identify themselves with it, to hate those who do not work as hard.
This is all very convenient for the ruling caste, a new form of religion, bypassing all stupid rituals, enslaving people directly, while they thank you for it.
Avantgarde Hebrew science fiction
I just want money.
You are likely motivated by non-monetary factors more than you realize. My company used to give semi-annual bonuses, and then decided to redirect that money toward "adventures". We had a company river rafting trip, went skydiving, hot air ballooning, and skiing. We sent many of the programmers on a "coding cruise" to Alaska. The result was better retention, better morale and camaraderie, and easier recruitment.
We're going hang gliding next month.
I want fair compensation but I also want and have a job that I enjoy and which I think does something with a positive impact on the world. Iâ(TM)ve turned down higher paying jobs because they didnâ(TM)t offer these things
If the only thing in life you can see any value in is money, I feel sorry for you, because you'll never be satisfied. Money is only a means to an end. If you chase money as though it were the end until itself, you'll be forever chasing, trying to get more money in order to finally be satisfied. But no amount of money is ever enough, because it doesn't provide satisfaction, contentment.
Just look at all the multi-millionaire stars of stage and screen who have committed suicide, or otherwise ruined their lives. They've had tons of money, yet life was so empty death seemed the only way out.
Or perhaps you didn't notice the summary says people value non-monetary things TOO. Nobody said money isn't useful, and even important. They said it's not the only thing that is important.
I could switch jobs and earn probably 50% more, at least 35% more easily. I don't do that because money isn't the only thing important to me. Time with my family is important. My job provides me important time with my family in multiple ways. They let me work from home, so I can have breakfast with my daughter instead of sitting in traffic. They give me time off no questions ask whenever I need it. Actually last week I tried to ask my boss if it was cool for me to take the next day off and he couldn't even understand how that was a question. If I wanted to take a day to go to the water park with my family, that was 100% up to me - I just needed to tell him, not ask him. They respect my work hours vs home hours and don't expect me to be working at 8PM.
My boss and my company treat me with respect. They ask me "are you okay with doing it this way?", or even "how do you think we should it?", rather than dictating from on high.
Our company had a conversation about what we want to do to improve the world. We don't want to sell just another product like the others, that doesn't really benefit anyone. We want to do something different, something we can believe in as our work doing a little something to make the world a slightly better place.
A year ago I thought I might have to switch jobs because I wasn't sure I could trust my new boss. I don't want to work for someone I don't trust. That matters to me. It turns out he has earned some trust, so I'm still there. Trust and honestly matters.
For many years I ran my own businesses, with a few employees. I work for a much larger, much more stable, company now, because stability matters. It gives me peace of mind. (For further peace of mind, I also have a backup, another large, stable company I could switch to if needed).
My job let's me learn and grow, working on different things, and gives me some flexibility in what I want to work on. Learning and growing are important to me.
I could go on and on, but you get the gist.
Like stocks?
Seriously, let's be honest here: Show me ONE C-level that cares about mission statement, meaningful work, job design or any other bullshit-feelgood wording and we'll talk about it.
Can't find one?
Guess why.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Let's see, what is it worth to me...
Flexible hours. Nothing. At least not more than for you, because flexible also means that I won't drop the pencil at 1700 instead of finishing that terribly important thing you want done today. Without flexible hours, so sorry but I work 0900-1700, you will see me finish it tomorrow at 0900.
Telework. Nothing. Actually, my question would be how much you're willing to pay extra for me to provide you with power and a workplace in my home at my expense.
Job security. Good one. Got a few more like that and you have a standup routine.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Of course compensation is important. But a job you like doing is equally important for a meaningful life.
Think about the hours you spend at work, commuting and sleeping. Not that much time left for other things. Meaning, your work is a big part of your life. It is in my opinion important to spend it on work you like doing, otherwise life would become miserable.
I have a friend in a rather boring job who says: “I work to make other things possible”. Such as a nice holiday destination etc. But at the same time he doesn’t enjoy most of his waking hours.
I work at my 3rd employer, since this month I work there for 20 years. Yes, the compensation is ok, but I only stayed so long because most of the time I truly enjoy it, find it interesting, challenging and with opportunities to meet great people.
This is so not true, money isn't everything. How short sighted and narrow minded can you be? I'm not in for the money.
I'm in for the stock options.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
You can certainly tell me why I'd value that over getting the money those trips cost, right?
Hint: I HATE traveling. I have to do a lot of it as part of my work, and that's way more than I willingly would do.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
I've often said that there are three criteria that I weigh when looking at a job:
What will I be doing? Is the work interesting, challenging, exciting, boring?
Where will I be doing it? Is it someplace where I want to live? Are there interesting things about that area? If it's already in the area, how much of a nuisance is it to get to work? A 10 minute commute? An hour? Two hours? Is there mass transit?
How much will I be getting paid to do it? Will I be able to support myself?
For example, if you want me to work on accounting software in North Dakota, you're going to have to pay me a lot more than if I was working on robotics in North Dakota or working on accounting software in southern California (though obviously cost of living comes into play).
So, at least for me, it isn't purely money. Yes, I want to be paid adequately. I don't want to have to eat ramen noodles 5 days a week so that I can pay rent. If my car breaks down, I want to be able to get it fixed and not have to pinch pennies for the rest of the month until I get a paycheck. But I'm willing to sacrifice some extra money to work on interesting things.
Probably top management (or shareholders) mostly care about the bottom line. Or worse: nothing but the bottom line. But even then: hiring workers from a low-wage country that only care about the pay, could be worse for that bottom line than hiring workers from a higher-wage country if they care about things besides pay. Likewise if that decision affects customers' perception of the company.
So even assuming the worst for management's motives, having a look at those non-monetary incentives could be beneficial for the bottom line. Not to mention other yardsticks along which a company's performance might be measured.
Nice try boss, but I'm not taking a pay cut. I'm ready to live in the Star Trek universe though, preferably a nice slice of TNG.
is that they're having trouble making ends meet. Given what student loans are like these days and the high cost of living in a lot of areas I can believe it. Nurses are one of those essential services you need even when the average cost of a house is $500k+. Like school teachers, police and fire department. People living in those communities want those services but they don't want to pay the people providing them enough to live where they work.
People have started using the word "gentrification" but I think we need something better to describe what happens when the working class are squeezed out of an area but the well to do and rich still want their services.
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That sounds horrible. I would quit a job like that. I want vacation with family and friends with my bonus, not vacation with co-workers.
So you want time off at the right seasons for traveling to each destination? How do you feel about getting work calls while traveling with your family? How about working 40 hours while traveling, as many people do?
Do you like to travel in a van, or in first-class on airliners? Do you enjoy spending time around other travelers, rather than homebodies?
I dare say your work can have quite an effect on your travel.
âoeYou are likely motivated by non-monetary factors more than you realize.â
Actually, sometimes people just tell you the truth.
Me, OTOH, only care about money when there isnâ(TM)t enough of it. And âenoughâ(TM) isnâ(TM)t actually all that much. Has to be an interesting problem, or it doesnâ(TM)t matter how much you pay me, I probably canâ(TM)t focus on it for all that long.
This is an example of different people having different values and preferences. I very much encourage my co-workers to call me, for a number of reasons.
At my job, we each have our own area of expertise and responsibility. Especially with my 20 years of both experience and constant study, there are certain things which are very much in my domain and either I care very much how it's done, or I have significantly more knowledge or experience about a certain thing (such as about code that I wrote).
I very much value efficiency, getting a good value, more bang for the buck. Therefore it bugs me when I find out that someone spent 8 hours trying to figure out something I could have told them in four minutes. I'd much rather answer their call - I'm probably driving (Bluetooth) or sitting at some social gathering I don't care about anyway, so their call is a welcome break from the boredom. It's just far more efficient to ask me, sometimes.
Other times, I've come back from being gone, or just from concentrating on other work, and found that a co-worker has made a big mess which could have been avoided with a five-minute conversation, because they were stretching too far outside their limits*.
Sometimes I have to clean up their mess. Other times the situation doesn't allow me to clean it up, so I have to live with their mess. I'd rather take the phone call.
I'm ALSO able to say "I'm a bit busy right now, but I can call you back in two hours", or even "I'm going to have to work with you on that when I get back to the office. There are some traps there that might bite you, so it might be a good idea to wait."
I can totally understand people not wanting you be disturbed though!
* In my experience there is a "right" amount of stretching one's abilities. Just like with physical fitness, fitness experts tell us to stretch our muscles, but don't stretch so far that it hurts - pain indicates damage. I'm not saying people should never do more than they've done before. Studies in education indicate learning happens when people go just a little beyond what they know well - not when they are in deep over their head.
> Me, I show up, work hard for 8 hours, and expect a check
> every two weeks. That is the extent of my requirements.
If that's that the extent of your boss's requirements, great. You've got a nice work environment.
* It took many years, but the principle has been established that female employees are not required to be their male boss' s sex partners. Now all we have to do is establish that male employees should not be required to be their male boss's beer buddies. It's glossed over with euphemisms like "after hours teambuilding excercises", but it basically comes down to cruising the strip joints, crawling the pubs, and getting home totally plastered at 2:30 AM in the morning.
* "work hard for 8 hours" is fine. Not 12 hours day-in day-out without overtime, and being on call 24x7 even when on vacation.
* Mandatory Fecesbook accounts. Someone please tell the HR-cunts that being an overgrown 13-year old girl who needs to constatnly post selfies does not constitute the one true way to live.
I'm not repeating myself
I'm an X window user; I'm an ex-Windows user
That sounds horrible. I would quit a job like that.
And we are happy for you to do so. We want team players here.
None of the places I shop at take stock options as payment. That is why money comes first, everything else anywhere after that.
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Same here. Part of my work-life balance is to spend my free time with people I don't work with.
You shop in the wrong places, pleb! ;)
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Wow. This comment made me throw up in my mouth a bit.
You're hardcore man. I'm one of those SJW snowflakes that would prefer not to show up for Christmas, or any other public holiday.
Who am I kidding, on top of that I also prefer not to show up for 40 days a year and to have the flexibility to work from home.
What do the people with disabilities and health issues that prevent them from going river rafting, skiing and hang gliding get?
const int one = 65536; (Silvermoon, Texture.cs)
SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
Ans: the high, hard one
Suppose you were an idiot and suppose you were a member of Congress
Well, I'd only consider those things positive, IF I already was being paid a satisfactory salary/bill rate.
But then again, I'd always be wondering if they can afford to pay for these type events, could they afford to be giving me a bit MORE direct $$ than spending it on company mandated activities?
I suppose it might depend on the frequency and the extravagance of the activities...a little is good, but a lot means they could be paying me more.
I prefer to have the money to decide how it is spent myself, I figure I can do better with my money than a company or the government.
Light travels faster than sound. This is why some people appear bright until you hear them speak.........
Lazear (in this volume) provides an excel- lent review of monetary incentives in certain organizations.
excel- lent ??
I just want money.
You are likely motivated by non-monetary factors more than you realize. My company used to give semi-annual bonuses, and then decided to redirect that money toward "adventures". We had a company river rafting trip, went skydiving, hot air ballooning, and skiing. We sent many of the programmers on a "coding cruise" to Alaska. The result was better retention, better morale and camaraderie, and easier recruitment.
We're going hang gliding next month.
Extreeeeeme! (sorry, 90s flashback there)
Those trips might be a tad tough for me; I have a disabled child and my wife has herself become disabled. I ain't going anywhere.
If I worked there, could I perhaps just have the money? (Or is it maybe soft age discrimination?)
I want money too. Like you, if you don't pay me enough I'm not showing up. That said, even with the money, I'm not super happy about the work I do, and often find myself wondering, "What the hell am I doing with my life? (other than making money)". I think that may be what this article is addressing: staving off existential ennui. For instance, certain physician specialties have very high self-reported job satisfaction. They're also compensated reasonably well. Is the high job sat score because the job itself is so great, or because they can tell a credible story to themselves about how their work is "meaningful" and how they're "helping people"? Other jobs that have high self-reported job satisfaction are clergy, firefighters, physical therapists, etc. The common thread seems to be the ability to assign "meaning" to the job, and not necessarily pay. I make considerably more than the average firefighter, yet the average firefighter is probably more satisfied with his or her job than I am with mine.
That sounds horrible. I would quit a job like that. I want vacation with family and friends with my bonus, not vacation with co-workers.
A million time yes. We spend more time with co-workers than anyone else in our lives just by being in the office... why would I want to spend any more time with them, nomatter how cool they might happen to be?
How many of you have had title inflations? Oh, you're not a programmer, you're a developer, a designer, a fill_in_the_blank. I mean, really, to janitors get paid more by having a title of "sanitary engineer"? Do they get more respect?
Of course not. And do you *really* think that upper management gives a flyin' fart about you, as long as you're willing to do "whatever it takes"? And even then, how much are they going to show you that it matters, in terms of *MONEY*?
Horse hockey. As a datapoint, I think it was in Studs Terkel's book from the late 70's, Working, that he mentioned a study showing that 80% of EVERYONE wasn't just unhappy in their job, but actively hated it. You - are you all wild and enthused when you come back to work Monday morning? Is it as important to you as the weekend, or the holiday, and how you spent that?
If people determine meaning from their jobs, they have far more fundamental problems!
> That balance point is different for different people
It is indeed different for different people. Most people probably don't realize the extent to which you CHOOSE that point.
If you're making over about $25,000, you are in the top 2% highest income in the world - you're rich. Above that, you're deciding "I'm going to give up X in order to be even more rich". If you're reading this, you probably already have a very high income. Income-wise, you're among the richest people in the world. You may still be living paycheck to paycheck by blowing $6.50 on a latte every day, and $180/ month for 650 TV channels, but that's a choice too. You *could* have $100,000 in the bank at your income level.
We're going hang gliding next month.
Ya ever look at the death and injury rates for that? Does your employer take out insurance on you?
Well, to quote Montana Max (only because that was where I first heard it)...
o/~ The best things in life are free
But you can give them to the birds and bees.
I need my money.
That's what I want... o/~
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"RSA ANIMATE: Drive: The surprising truth about what motivates us"
https://www.youtube.com/watch?...
More on Dan Pink and his writings: https://www.danpink.com/about/
Alfie Kohn also writes on the topic of intrinsic motivation
https://www.alfiekohn.org/arti...
https://www.alfiekohn.org/arti...
https://www.alfiekohn.org/puni...
I put together a reading list of related ideas here:
"High Performance Organizations Reading List"
https://github.com/pdfernhout/...
Of course, appropriate compensation is important in a society like the USA that has so many exchange transactions (as opposed to subsistence, gift, and planned transactions). Like Dan Pink says, people need to be paid enough to "take money off the table" as an issue. And for some people who like to work independently, saving up money is a way to buy their own time to work on things they care about.
But once money is off the table, these sorts of non-monetary issues affect productivity:
* Purpose (Finding meaning in what you do in how it affects people and the rest of the world)
* Autonomy (being able to make decisions about what you do and how you do it)
* Mastery (personal growth in technical skills and other areas)
* Community
* Infrastructure
Dan Pink talks about the first three in the video above.
Community is related to shared purpose, but I feel is a different thing in itself about how people relate to each other and have fun together. While I feel it problematical to ask employees to travel long distances for special events or to give up evenings or weekends for "team building exercises", a company that uses some of the work day to build community is likely making a good investment. Those can be relatively simple things like lunch-and-learns, holiday parties in the late afternoon, special lunches with invited guests, and so on. Even something like a regular "all hands" meeting to discuss what is going on in the company can help build community. Enjoyable training sessions like using appropriate humor in communications could also help. Even just starting voice or video chats ten minutes before the appointed time so people who show up early can chat briefly about stuff they are doing outside of work can make a difference. But community is not any one thing -- it is about the whole as a culture and also strengthening many individual one-to-one relationships.
Infrastructure overlaps with "Autonomy" to an extent -- but larger organizational choices can make a big difference for software developers; for example:
* The process choices -- e.g. see David Thomas on moving beyond "Agile" to "Agility"
* The tool/language/library choices -- e.g. in the web space there are so many poorly thought out overly-complex systems being adopted like Angular from big-name herd effects. Contrast such overly-complex systems with the idea of simplicity like in "Simple Made Easy" by Rich Hickey (developer of Clojure) or ideas by Chuck Moore (developer of Forth) or by Alan Kay and Dan Ingalls (with Smalltalk) or Leo Horie (with Mithril.js/HyperScript) and Adam Morse (with Tachyons.css). You don't have to use these specific languages or libraries to learn to appreciate things from the perspective of appropriate simplicity as the ultimate elegance, which can then be applied to whatever you are stuck with for legacy reasons.
* Having the appropriate tools you need to do your job (e.g. adequate computing, adequate displays, an appropriate workspace, good audio/visual communications, etc.)
And of course the specific relation an employee has with a manager makes a huge difference, given it is often said people
A 21st century issue: the irony of technologies of abundance in the hands of those still thinking in terms of scarcity.