The best use of money as a motivator is to pay people enough to take the issue of money off the table: Pay people enough so that they’re not thinking about money and they’re thinking about the work. Once you do that, it turns out there are three factors that the science shows lead to better performance, not to mention personal satisfaction: autonomy, mastery, and purpose.....................
H/T Rob Vinall of RV Capital on the above, which I had read before, but I enjoyed reviewing Pink's ideas, as well his TED Talk, RSA Animate video, and an old HBR podcast. I also enjoyed what Vinall wrote about the idea in his latest investor letter:
According to Dan what motivates people is autonomy (the sense of freedom to do what you want), mastery (the sense of getting better at something through practice), and, above all, purpose (the sense that there is a point in what you are doing). If you are still sceptical, imagine your parents’ reaction if you tossed them a tip after they finished preparing dinner for the family.
A quick aside: if you are wondering which career path to go down or advising a younger person on the same question, I believe Dan´s mental model is a far more actionable one than the more traditional advice of “follow your passion”. If you have been playing the violin since the age of 5 and it is all you ever wanted to do, that is great. Back in the real world, if you have not got a clue what you want to do, look for a company that gives you autonomy, the opportunity to learn, and is doing something meaningful. Irrespective of what the company makes or what service it provides, the passion will come.