Nowadays, an increasingly number of companies pays attention to the ways which can stimulate people. Some people think that financial methods are the best way to motivate all employees. However, financial methods of motivation are not always the most suitable way to motivate employees, and moreover not all employees. According some study, people have obvious motivation for working. On the contrary, from companies' aspect, using financial reward schemes to motivate also have several problems, summarized as follows:
First, are financial rewards costs or investment? Financial rewards are salary or wages, for a company is money. Money is both cost and investment, but Managers have different opinion. Some managers who think financial rewards as company's cost set low payment standard naturally, as little as possible raise, even no raise. Other managers who think financial rewards as the investment expect to motivate employees through high payment, high benefits, and bonuses, raises. They also expect to get a return from this investment. The two views reflect the very different management philosophy, resulting in a distinct managerial effect.
Second, are financial rewards needs of high level or low level? It seems money is the low-level, at least not enough noble. In fact, under normal situation, money can help people to achieve any level of Maslow's hierarchy of needs: physiological, safety, belongingness and love, esteem and self-actualization. For most people, income is a flag of achievement to measure McClelland's achievement motivation. The money pursuing is an extrinsic motivation. However, except health, perhaps only good boss and good working environment are able to compete with the money on the charm.
Third, are financial hygiene factors or motivational factor? Herzberg thought it can be both hygiene factors and motivational factors. The moment of payment