The document discusses theories around employee motivation in the workplace. It summarizes Frederick Herzberg's theory from 1959 that pay alone does not motivate employees, but instead focuses on motivators like achievement, recognition, the work itself, and responsibility. The document also outlines Herzberg's concepts of hygiene factors, like salary and benefits, which can decrease dissatisfaction, versus true motivators that increase satisfaction. Combining different levels of motivators and hygiene factors can affect overall motivation and complaints. The conclusion quotes Herzberg that the best motivation is giving employees interesting and challenging work.

1. Is money the motivator?
Artem Laevskiy
Head of HR
NEW YORKER RUS

2.  1914 – Henry Ford doubles wages at his Ford Motor
Company in an effort to reduce labor turnover.
Thousands apply for jobs with the company.
 1959 – Fredrick Herzberg proposes his theory that
“motivators” and “hygiene factors” lead to
satisfaction or dissatisfaction at work. He stress that
pay demotivates, but it does not motivate.
 2000s - “Best Employer” lists reveal that the highest
ranked companies are often not those offering the
biggest salaries.
If you were paid more, would you work harder?

3. Money matters, but workplace motivation is much
more complex than financial reward alone
If poorly managed, hygiene factors
– such as pay, conditions, supervision,
and security – can decrease
job satisfaction
When present, motivators
– such as recognition, professional
growth, and responsibility
– can increase job satisfaction

4. Hygiene Factors and Motivators
HYGIENE FACTORS
decrease job dissatisfaction
 Company policies & administration
 Physical work conditions
 Salary
 Status
 Supervision
 Relations with manager
 Relations with co-workers
 Relations with subordinates
 Work / life balance
 Job security
 Fringe benefits (insurance, pension,
education reimbursement, sick leave,
vacation, etc.)
 Perks (take-home vehicles, free
refreshments, lunch allowance, etc.)
MOTIVATORS
increase job satisfaction
 Interesting & challenging work
 Clear direction & objectives
 Feedback and support
 Recognition for achievements
 Sense of personal achievement
 Promotion opportunities
 Increased responsibility
 Opportunities for personal growth
 Opportunity to do something meaningful
 Involvement in decision making
 Sense of importance to the Company

5. Combinations
High motivation
Low hygiene
========
Motivated, but
a lot of complaints
High motivation
High hygiene
========
High motivation,
low complains
Low motivation
Low hygiene
========
Not motivated,
many complaints
Low motivation
High hygiene
========
Not motivated,
few complaints
High Motivation
Low Motivation
Low Hygiene High Hygiene

6. If you want someone to do a good job,
give them a good job to do.
Fredrick Herzberg