I don’t believe in the “money doesn’t motivate” mantra. It’s lazy, one-dimensional thinking.
Sure, if we consider a c-suite executive who earns a 7-figure pay-check, has a room entirely dedicated to storing Prada bags and is trying to optimize the time she spends brushing her teeth so she can glance at her kids for an extra minute before leaving home… Then yes, giving this person a 10 to 20 percent raise won’t motivate her. Hell, a 100% raise won’t do it. I’m with you there.
But what about the middle-manager who is busting his chops to put food on the table for both kids while his wife works part-time to be able to afford college? What if that guy is suddenly able to afford to take his wife on a dinner date once a week? How motivating do you think that would be?
Yes, yes. He would get used to it. We get used to the good things fast. The raise that resulted in a palpable quality-of-life improvement soon becomes baseline.
Nothing wrong with raising your employee’s baseline.