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How to Motivate with Incentives


Motivation is a complex issue.

Let me get right to the point . . .


People do what they do to get what they want.


We see what motivates a person by looking at how they use their time and other resources. Examine what someone does and you see what motivates them.

So let’s talk about motivation in the workplace.

One of the easiest ways to quickly get to the basics of motivating people at work with incentives is to think of someone operating a vending machine.

There are several basics in play:

incentive motivate gainsharing

(1) There has to be something in the vending machine that the person wants.

(2) They need to believe they understand how to operate the machine.

(3) They need to believe the machine works.

(4) There needs to be feedback, so the person can tell if the machine is working.

(5) The person needs to get into action (put the money in, push the buttons, etc.).

(6) They need to actually get what they want. The vending machine needs to work.

Let’s look at how this translates to the workplace:

(1) There has to be something in the vending machine that the person wants.

People want a long list of things from their work: self-esteem, play and win the game, show they’re carrying their weight, etc., oh . . . and money!

Money answers the question “I see the company is doing better when we all perform better. But what do I get out of this?”

Money is an essential part of motivation at work. It’s a “must have”.

But it’s only one of many things people want from their work. This is good, because momentum towards performance builds, as the different rewards stack up on one another. The more things a person gets from their work, the “more solid” their motivation.

(2) They need to believe they understand how to operate the machine.

The biggest mistake companies make in trying to motivate their people with incentives is they don’t tell them specifically what they need to do to earn their targeted bonus.

They may tell them in general. But people need to know specifically, what they need to do today, to be carrying their weight towards the bonus.

Without the specifics, they’re “in a fog”.

They’re lost.

When they have the specifics, they can “tear into” problem solving. They can make sure they are keeping things on track.

Everything becomes much more simple, clear and straightforward when they have specifics.

It changes everything.

(3) They need to believe the machine works.

People need to understand how their pay-for-performance system works. If they don’t understand it, it won’t be effective.

They also need to believe that if they do their part, as they understand it, the system will work and they’ll get their bonus.

(4) There needs to be feedback so the person can tell if the machine is working.

They need feedback so they can see if things are coming together overall, and also they need to know how the individual parts are doing that make up the whole.

It’s about driving the overall performance and making this like a game that they’re playing to win.

The feedback shows them their progress. It’s very important to motivation to see that their efforts are making a difference and to guide their own efforts to get what they want.

(5) The person needs to get into action (put the money in, push the buttons, etc.).

Motivation is really about taking action. It’s about making things happen.

Enthusiasm, focus, etc. without action doesn’t really do anything. Aspirations and intentions don’t really count.

We need to take action to get results!

We do need to think, plan, focus, etc. But we also need to be sure that this leads to action!

(6) They need to actually get what they want. The vending machine needs to work.

To complete the motivation cycle, people need to get what they wanted at the outset.

When this happens, the whole motivation process is reinforced and is more likely to happen again.

Their success, the bonuses, act “like a flywheel.” They increase their momentum to try again with even more confidence and gusto than before.

Your Homework

If you have an area where you want to influence your employees’ motivation, think about it from this vending machine analogy.

• Do you have each of the steps in place?

I strongly encourage you to go ask your people to confirm you have the necessary conditions in place.

You may think that your people understand specifically what they need to do today to be carrying their weight towards their bonus. But if they don’t actually know, it’s a major failure.

You’ve lost most of your motivation right there.

Put the conditions in place, and you’ll have the motivation you want.

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