How much should people earn? Even if resources were unlimited, it would be difficult to stipulate your ideal salary. Intuitively, one would think that higher pay should produce better results, but scientific evidence indicates that the link between compensation, motivation and performance is much more complex. In fact, research suggests that even if we let people decide how much they should earn, they would probably not enjoy their job more.
Even those who highlight the motivational effects of money accept that pay alone is not sufficient. The basic questions are: Does money make our jobs more enjoyable? Or can higher salaries actually demotivate us?
Let’s start with the first: does money engage us? The most compelling answer to this question is a meta-analysis by Tim Judge and colleagues. The authors reviewed 120 years of research to synthesize the findings from 92 quantitative studies. The combined dataset included over 15,000 individuals and 115 correlation coefficients.
The results indicate that the association between salary and job satisfaction is very weak. The reported correlation (r = .14) indicates that there is less than 2% overlap between pay and job satisfaction levels. Furthermore, the correlation between pay and pay satisfaction was only marginally higher (r = .22 or 4.8% overlap), indicating that people’s satisfaction with their salary is mostly independent of their actual salary.
Money Motivation Series
Does Money Really Affect Motivation? (1)
Does Money Really Affect Motivation? (2)
Does Money Really Affect Motivation? (3)
Does Money Really Affect Motivation? (4)
Does Money Really Affect Motivation? (5)
Does Money Really Affect Motivation (6) ?
Reinvigorate Your Career
Benefits of Gratitude: Savoring Life’s Good Times (1)
7 Strategies to Becoming a Happier Person (1)
Does Money Make You Happy?
“Why Be Happy? It Can’t Buy You Money” said Henny Youngman
Myths of Happiness (Part 1)
Myth #2: I Must Change My Circumstances To Be Happy (Part 2)
Myth #3: You Are Either Happy Or You’re Not (Part 3)
What’s More Important: GDP or Gross domestic Happiness?