When it comes to employee motivation, do you sell your people short—i.e. do you try to motivate them using the wrong things?

For instance, do you continue to think the ticket to motivating employees is throwing more money or benefits at them?

Do you worry that you won’t be to retain and engage your best employees because you are not able to pay as much—or more—than your competitors?

If you answered “Yes” to these questions, you’re not alone. You are demonstrating a thinking error the majority of us make.

The Price of This Thinking Error

While “normal”, this thinking error contributes to the depressingly low levels of employee engagement throughout the world (you know the research… only about one in four employees report being highly engaged).

It also helps to explain Kepner Tregoe’s research revealing that less than 1/3 of employees surveyed reported that their boss knew what motivated them.

So what’s the thinking error related to employee motivation?

To illustrate, let me share with you two studies from the fascinating book by Chip and Dan Heath, Made to Stick: Why Some Ideas Survive and Others Die.

The brothers Heath describe two studies that reveal the human tendency to think that what motivates us is different from what motivates others.

How Do You Communicate The Value of a Performance Bonus?

First, the authors cite a study involving asking individuals to state which way of communicating a $1000 performance bonus would be most meaningful to them:

1. Think of what that $1000 means: a down payment on a new car or that home improvement you’ve wanted to make.

2. Think of the increased security of having an extra $1000 in your bank account or rainy day.

3. Think of what the thousand dollars means: the company recognizes how important you are to its overall performance. It doesn't spend money for nothing.

When people were asked which way of communicating the bonus would appeal to them personally, most of them said No. 3.

While messages No. 1 and No. 2 communicated the practical, tangible value of the bonus, No. 3 tapped into the intangible need for recognition and self-esteem.

Where it gets interesting though is when the researchers then asked participants to ask which message would be most compelling to others.

Most rated Message No. 1 as most compelling to others, followed by No. 2.

When (and Why) Some “Rewards” Don’t Reward

The authors note wryly:

“That is, we are motivated by self esteem, but others are motivated by down payments. This single insight explains almost everything about the way incentives are structured in most large organizations.”

What Motivates People to Take On A New—And More Challenging—Job?

The authors then share another study asking participants to evaluate the following messages trying to persuade someone to take on a new job that will be crucial to their employer’s success:

1. Think about how much security this jobs provides. It’s so important that the company will always need someone in this job.

2. Think about the visibility provided by this job. Because the job is so important, a lot of people will be watching your performance.

3. Think about how rewarding it will be to work in such a central job. It offers a unique opportunity to learn how the company really works.

Once again, respondents predicted that others would be most motivated by factors different than what would motivate them.

They found No. 3—which appeals to the desire to Learn—most compelling.

However, they predicted No. 1—which appeals to the need for Security—to be the most compelling to others. No. 2—which appeals to the need for Esteem—was believed to be next in line

As the Heaths put it, we seem to think that others live “in Maslow's basement,” while we ourselves live in the penthouse.

Maslow’s Hierarchy

To refresh your memory of Maslow’s Hierarchy of Needs, here they are in descending order:

1. Transcendence: Help others realize their potential.
2. Self-actualization: realize our own potential, self-fulfillment, Pete experiences.
3. Aesthetic: symmetry, order, beauty, balance.
4. Learning: no, understand, mentally connect.
5. Esteem: achieve, be competent, and approval, independence, status.
6. Belonging: love, family, friends, affection.
7. Security: detection, safety, stability.
8. Physical: hunger, thirst, bodily comfort

Thus, in both examples, respondents reported that what they would find most motivating, addressed a human need higher on Maslow’s Hierarchy than what they believed others found motivating.

The Heaths go on to say:

“The result of spending too much time in Maslow's basement is that we may overlook lots of opportunities to motivate people. It's not that the "bottom floors"-or the more tangible physical needs, to use the hierarchy metaphor-aren’t motivational. Of course they are. We all like to get bonuses and have job security and feel like we fit in. But to focus on these needs exclusively robs us of the chance to tap more profound motivations.”

Putting This to Use

OK, it’s Practical Application Time. How can you use this understanding of human nature to create a more motivational environment?

1. Catch yourself if you find yourself assuming that what motivates your employees are those things lower on Maslow’s Hierarchy, such as a pay increases, great benefits, or other goodies. While they are nice, they are not the things that inspire greatness. Those aren’t the things that power initiative and foster a Small Business Owner Mentality among your workers.

2. Ask your employees what you can do together to make their work experience more intrinsically motivating. Don’t assume you know. Ask.

3. If you want employees to bring their Best Selves to work, invite their Best Selves out by appealing to the higher human needs. You do this by working with them to create a work experience that meets these needs:

a. Meaning and Purpose – Give them as much opportunity to make a difference, such as offering improvement suggestions or spearheading a project or initiative. Continually show them how their work contributes to the big picture. Continually share stories of how your organization does great things, and how employees make that possible.

b. Learn and Grow – Provide plenty of opportunities to stretch, to cultivate and apply their curiosity to business problems, to develop new skills. Use the current research on Strengths Based Leadership to help them identify, leverage, and grow their strengths, so they not only feel even more fulfilled, but also provide more value to your organization.

c. Help and Serve – Provide opportunities for employees to mentor others. Make sure they get the training they need to do it well, and the recognition they deserve for serving. Encourage volunteering and perhaps do what some employers do: give them a certain amount of paid time off each year to volunteer.

So...to summarize...if you want a motivated workforce, if you want employees to show initiative, make sure you don’t sell them short when you think about how to motivate them. Instead, make sure your strategy includes asking them how you can co-create a more motivational work experience, and make sure you add the higher human needs to the mix.

If you do, you will have a more motivated, engaged, productive workforce.