Plenty of studies show that pay increases only serve as a short-term performance motivator.
Certainly salary is important; every company should strive to compensate its employees fairly – even, if possible, more than “fairly.” Equitable pay is a given.
But it’s also often true that receiving a raise is a lot like buying a new car. Pretty soon we ratchet our expectations upwards and even a new Ferrari is “just” a car (unless it's a Tesla, which is never “just a car”).
So where long-term performance is concerned, what matters more than pay? What do people wish for from their work? What helps employees feel truly valued and appreciated – and motivates them to do their absolute best?
