Inadequate pay does affect performance, no question about it. But as soon as money is enough to spare money-related anxieties, such as paying the bills, is there any theory or anecdotal evidence that increasing financial reward has any motivating power at all?
I already went through a number of posts on this forum, of people complaining of lack of interesting work/ professional growth/ recognition of individual contribution, but not lack of salary increase on top of an already satisfactory income.
- my own feeling is that once you reach a plateau in your career, increasing financial reward may have the power to keep you at that job (for some more time), but would hardly bring inspiration for better performance;
- of course, different types of people get motivated in different ways. Probably there's a type of people who prefer stability and predictability in their work and who feel completely comfortable doing the same thing over and over. But even for this (presumable) type of people, good performance would likely translate into remaining loyal and not slacking with their mundane work. Then, would it be necessarily increasing financial reward what keeps their loyalty and perseverance?