To summarize, using money to motivate people can be a double-edged sword. For tasks that require cognitive ability, low to moderate performance-based incentives can help. But when the incentive level is very high, it can command too much attention and thereby distract the person’s mind with thoughts about the reward. This can create stress and ultimately reduce the level of performance.
Interpretation
Using money as motivation can have both positive and negative effects on performance.
This quote by Dan Ariely highlights the complexity of using financial incentives to motivate individuals. While moderate performance-based incentives may enhance cognitive tasks by providing motivation, excessively high rewards can lead to stress and distraction, ultimately hindering performance instead of improving it. Thus, finding the right balance is crucial for effective motivation.
In practice
In a corporate training session discussing employee motivation strategies.
It is true that from a behavioral economics perspective we are fallible, easily confused, not that smart, and often irrational. We are more like Homer Simpson than Superman. So from this perspective it is rather depressing. But at the same time there is also a silver lining. There are free lunches!
In a world where everyone is behaving honestly, any dishonesty constitutes a big infraction. But, in a world where many people are behaving dishonestly, and the news is filled with stories of their infractions, even big infractions can feel small to the perpetrator.
Because cheating is easier when we can justify our behavior, people often cheat in small amounts: We can come up with an excuse for stealing Post-It notes, but it is much more difficult to come up with an excuse for taking $10,000 from petty cash.
Disasters are usually a good time to re-examine what we've done so far, what mistakes we've made, and what improvements should come next.
It is very difficult to make really big, important, life-changing decisions because we are all susceptible to a formidable array of decision biases. There are more of them than we realize, and they come to visit us more often than we like to admit.
The most difficult thing is to recognize that sometimes we too are blinded by our own incentives. Because we don’t see how our conflicts of interest work on us.
Praise the slightest improvement and praise every improvement. Be hearty in your approbation and lavish in your praise.
Loyal and efficient work in a great cause, even though it may not be immediately recognized, ultimately bears fruit.
Don't let anyone ever make you feel you don't deserve what you want.
A lot of times I find that people who are blessed with the most talent don't ever develop that attitude, and the ones who aren't blessed in that way are the most competitive and have the biggest heart.
Keep your dreams ALIVE. No matter how hard it gets, no matter how many people talk about you; they're going to throw dirt on you but that's alright, when they put you in that box (after your dead), they're going to put dirt on you some more, so that's okay - GO, don't be afraid, have NO FEAR.
There's always ways of motivating yourself to higher levels. Write about it, dream about it. But after that, turn it into action. Don't just dream.
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