Date of publication: 2017-08-26 14:02
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Despite the overwhelming number of laboratory experiments carried out to evaluate this argument — known as the overjustification effect — there is still no consensus about the degree to which higher pay may demotivate. However, two articles deserve particular consideration.
The National Compensation Survey produces quarterly indexes measuring change over time in labor costs, Employment Cost Index (ECI), and quarterly data measuring level of average costs per hour worked, Employer Costs for Employee Compensation (ECEC).
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These results have important implications for management: if we want an engaged workforce, money is clearly not the answer. In fact, if we want employees to be happy with their pay, money is not the answer. In a nutshell: money does not buy engagement.
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