Compensate your employees the right way.

Money on its own isn’t a great motivator - after people earn enough to live the lives they want, they will no longer be motivated by it. To drive motivation in your employees, switch from using money as a primary motivator, and instead, encourage intrinsic motivation. This is done by taking their creativity, work ethic, and other such metrics into account.


  1. Ensure internal and external fairness.
    This means that your employees should be paid commensurate with their colleagues, as well as with others in similar lines of work and organizations.

  2. Pay your employees more than the average wage.

  3. Use wide-ranging, relevant, and hard-to-game performance metrics.
    For example, instead of basing your sales employees’ pay solely on their sales in the current quarter, base it on their sales in the current year, their ideas for new products, co-worker evaluations, etc. in addition to their sales in the current quarter.


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