Motivation ‘un-Pinked’: When and how monetary rewards work (Guest Commentary)

Money can increase performance — in some cases
By Angus Duff
|Canadian HR Reporter|Last Updated: 06/18/2013

In his 2009 bestselling book Drive: The Surprising Truth About What Motivates Us, Dan Pink makes the compelling argument that monetary rewards compromise performance. Yet most organizations continue to use and trust monetary incentives. Why the disconnect?

There are two issues at play. First, research suggests monetary incentives reduce performance, but research also suggests monetary incentives increase performance.

Pink’s key message is monetary incentives reduce the performance of complex tasks but enhance the performance of simple tasks. The essence of the argument is financial incentives cause people to work faster and focus on the incentive.