• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Current price of oil as of July 1, 2026

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Current price of oil as of July 1, 2026
LeadershipFuture of Work

A bigger paycheck is just one way to make employees happy

By
Michael Maccoby
Michael Maccoby
Down Arrow Button Icon
By
Michael Maccoby
Michael Maccoby
Down Arrow Button Icon
September 23, 2015, 11:47 AM ET
166836044
Photograph by Getty Images/Ikon Images
Add Fortune on Google for similar content.

It’s a well-established fact: Companies need engaged employees. They are motivated to innovate, increase productivity, and satisfy customers. The sad truth, however, is that there are just not enough of them. Gallup surveys report that less than a third of American employees are engaged at work, and the percentage is even lower in other countries.

Why aren’t more workers engaged? Companies spend billions on management and leadership training that invariably includes motivation theories and advice about how to get people to care more about their jobs. The answer is simple: Most of the solutions out there are misleading or just plain wrong.

Most managerial theories of motivation fit into two buckets: hard and soft. Hard theories advise using carrots and sticks: money, promotion, threats. Soft theories include bosses who show empathy and giving workers more freedom.

Under hard motivation, if employees meet performance standards, they keep their jobs; if they do better, they are paid more and may be promoted. But money can also distort drive and even demotivate. Someone hoping for a bonus may try to please the boss by withholding negative information or constructive criticism. Workers competing for a limited pot of money are not likely to collaborate. And employees at companies where money is directly tied to production often find ways to game the system. Hard motivation that plays on greed and fear can get compliance but not engagement.

 

Would employees be more motivated by the application of a soft theory like a caring boss? What about giving them more autonomy and power in making decisions about how they work, when they work and who they work with?

Clearly, people prefer a caring manager, and many of them quit because of an autocratic or uncaring boss. But recent studies show that an empathetic manager doesn’t inspire employees to work any harder; they may be happier, but that doesn’t mean they’re more engaged. And autonomy can be quite motivating for self-starters, but not all employees are equipped to go off by themselves to innovate; nor does autonomy always encourage people to collaborate.

There is no one best way to motivate and engage people at work. Managers and leaders need to create a culture that integrates elements of hard and soft theories into what I call smart motivation, including five Rs: reasons, responsibilities, recognition, relationships, and rewards. All of the Rs can strengthen engagement, but their relative importance can vary for different personality types.

Here is a brief description of the five Rs and how different personality types prioritize them.

Reasons. Employees are motivated when the purpose of their work is meaningful to them. Caring personalities are motivated to help people. Visionary entrepreneurs like Steve Jobs, Bill Gates, Jeff Bezos, John Mackey, and Elon Musk are motivated to change the world. A recent study at the Brookings Institution indicates that millennials may be engaged when working for a company that supports solutions to social problems.

Responsibilities. Employees are motivated when they can exercise their skills and when they are in the right roles, doing what they enjoy doing. In The Art of the Deal, Donald Trump wrote that he liked making deals: “I don’t do it for the money … I do it to do it.” For many technical workers and professionals it’s solving problems; for craftsmen, it’s building high-quality products; for doctors and nurses, it’s treating patients. Autonomy is especially a factor for professionals and craftsmen. Interactive personalities are more likely to feel engaged in collaborative projects, while exacting personalities prefer more independent work time.

Recognition. Everyone wants to be noted for their contributions, improvements, and innovations. Toyota (TM) gains engaged assembly line workers by recognizing and rewarding ideas, no matter how small. At the automaker’s Ngoya factory I once visited, a supervisor told me that his workers offered an average of 50 ideas per person per year, of which 80% were adopted. On the converse, people become disengaged and resentful when their contributions are not recognized—and especially when bosses take the credit for them. Caring personalities, who place a high priority on interpersonal connections, want to be recognized for helping or supporting others, while visionary personalities, who value accomplishment, want to be recognized for surpassing goals.

Relationships. Great relationships with bosses and co-workers are a powerful motivator. Builders of great companies such as Thomas Watson of IBM (IBM) and Bill Hewlett and Dave Packard of Hewlett-Packard (HPQ) made “respect for the individual” a key value. Disrespect, on the other hand, triggers hostility. And relations that engage don’t only come from managers who mentor. They can happen with co-workers and customers too. While good relationships are important to people with all different personality types, their meaning varies. Caring and interactive types tend to focus on connections and conviviality, while visionary and exacting types want access to expertise, resources, and power.

Rewards. They strengthen motivation and engagement best when they reinforce desired behavior. In Toyota’s Ngoya factory, 20% of workers’ pay depended on whether they helped others and created harmony in the group. But money isn’t the only effective reward. When I lectured at Google a few years ago, I had lunch with a group of its millennial employees, and most I talked to did not expect to stay there. They planned to join startups or to work for NGOs that were taking on social issues. Those millennials were engaged by opportunities to learn new skills or create new knowledge—not only interesting job assignments, but also taking courses or being sent to conferences.

Which of the five Rs most motivates you? What do these Rs mean to you in your specific context? If you are leading a team, ask the members to rate the Rs, describe what they mean, and score how well they are being practiced in your organization. I’d be interested in the results.

Michael Maccoby is a globally recognized expert on leadership, who for 40 years has advised global leaders in businesses, governments, unions, universities, and non-profit organizations in 36 countries. He is president of the Maccoby Group in Washington, D.C., which offers consulting, coaching, research, and leadership workshops. The article above is adapted from his book, Strategic Intelligence: Conceptual Tools for Leading Change.

About the Author
By Michael Maccoby
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

U.S. Treasury Secretary Scott Bessent
EconomyDebt
AI’s $2.2 trillion deficit fix is already half fake, economists say
By Tristan BoveJuly 2, 2026
5 hours ago
Mark Zuckerberg, wearing a white shirt, smiles. He is standing in front of a crowd.
SuccessMark Zuckerberg
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the ‘highest-quality beef in the world’ on his $300 million estate in Hawaii
By Sasha RogelbergJuly 2, 2026
7 hours ago
Chris Hulatt co-founder of Octopus Group
SuccessHow I made my first million
A 2-year taste of the office was enough to make 3 grads quit. Now they run a $13.2 billion investment firm: ‘We didn’t want a traditional job again’
By Orianna Rosa RoyleJuly 2, 2026
7 hours ago
Woman taking photo in scenic landscape
Successlifestyle
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
By Emma BurleighJuly 2, 2026
9 hours ago
Jason Lemkin
Successwork-life balance
This investor won’t back startups unless staff are in the office 6 days a week: ‘Not because I don’t have empathy, because they’re going to fail’
By Preston ForeJuly 2, 2026
9 hours ago
The true cost of Donald Trump’s $2.2 billion year
NewslettersCEO Daily
The true cost of Donald Trump’s $2.2 billion year
By Diane BradyJuly 2, 2026
14 hours ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
2 days ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
8 days ago
Current price of oil as of July 1, 2026
Personal Finance
Current price of oil as of July 1, 2026
By Joseph HostetlerJuly 1, 2026
1 day ago
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
Success
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
By Orianna Rosa RoyleJuly 2, 2026
17 hours ago
Trump got a $78K pension from the Screen Actors Guild in 2025 because he appeared in Home Alone 2 in 1992
Politics
Trump got a $78K pension from the Screen Actors Guild in 2025 because he appeared in Home Alone 2 in 1992
By Sasha RogelbergJuly 1, 2026
1 day ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
6 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.