Is Compensation the Only Way to Motivate?

Not long ago, one of my closest friends made a career decision that reflected where he wanted his life outside of work to move towards and thus chose to align his professional work and compensation to match his personal life goals. My friend completed his MBA program a couple years ago; however, more significantly within the past three years he married his wife, had one child, and towards the end of 2024 received the news that he and his wife were expecting twins.

Due to external personal factors, in this case a young growing family, my friend decided to enter the job market and ended up accepting a new position with a company that was better structured to support him both financially and professionally. Unlike his previous employer, this new organization allowed him to spend more time at home as he works remote four days a week, offered a better healthcare benefits plan, and included a pay increase from what he was previously making. As we’ve touched upon, just as organizations are dynamic and evolving, so are its employees and their motivating factors. Therefore, it’s vital for managers to constantly have ongoing communication with their employees about job development, goals, and personal aspirations so they can effectively position them for success within the organization and beyond.

In my friend’s case, the key factor that stood out to me most was his shift in motivation when he made the choice to look for new employment opportunities. His decision to switch jobs was not just about a pay increase or sparked due to negative experiences with his current company, but rather about finding an employer who would help him achieve long-term stability for himself and his new growing family. This example serves as a reminder that compensation is not only a motivating factor to encourage higher employee performance, but can also serve as a reflection of someone’s current position in life or their level of responsibility beyond the workplace.

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