Why Your Brain Lies To You: Cash Is NOT The Best Motivator Although money is one of the indicators of growth and success, it’s not necessarily the best motivator when it comes to incentivizing a sales team. Tim Houlihan and Dr. Kurt Nelson are consultants who have spent more than 20 years working with companies to design incentives that will increase productivity within sales teams. Just a few years ago, they started a podcast that provides practical applications in the real world. One of their topics, motivation through incentivizing, is especially helpful for sales managers. People tend to make decisions based on an emotional gut response, even though we mistakenly think these choices are made based on rational thought. Emotion and motivation come from the same root making it difficult to distinguish one from the other. Money has less of an emotional connection than we realize and because motivation is tied to our emotions, money can be a poor incentive for a sales team. Human beings as emotional creatures Daniel Kahneman won a Nobel Prize in 2002 for his idea about the one thinking vs two thinking, an automatic response versus one's cognitive reflective thinking. Human beings respond quickly to a number of situations because that’s how we survive. The brain takes only 3% of our body weight but it consumes 20% of the energy used. The brain then tries to conserve energy with the speed of decision making. When we make emotion-based decisions, non-rational judgements are made. The illusion of motivation Because we think we know our own motivation, we think we can analyze what motivates others. While we can be sympathetic, knowing what others think has too many variables for us to make a consistent, accurate assessment. If we focus on someone’s emotions, instead of assuming what they’re thinking, it is far more effective to ask directly. Cash is a required component Cash isn’t bad as an inventive. It’s a required component in any business and it’s needed to pay the bills, mortgage, buy food, go on vacation etc. However, once those needs are met, incentives that are more material or experiential in nature move people into greater effort. Tim did research with Dan Ariely from Duke University, the author of the book called Predictably Irrational. For their study, Tim and Dan took several call center reps and broke them into four groups, each getting a different reward. They found that the people who were rewarded with prizes such as bicycles, cockpots, and other non-cash items performed 30% higher than their counterparts who received cash. Motivation and Emotion When we evaluate the value of an incentive, a cash reward is easily calculated against the effort it takes to get it. When a non-cash reward is offered, it’s harder to estimate. The thought process then goes to the level of desire for the prize and the motivation becomes emotion-based rather than calculative. The Four Drive Model, developed by Paul Lawrence and Nitin Nohria, illustrates the different ways people can be motivated. The four drive models: Acquire and achieve: Reward System Bonding and belonging: Organization’s Culture Challenge and creating: Job and Organizational Structure Defending and defining: Vision/Reputation and their Performance Management System Competition as a motivator When Tim begins his lectures, he asks the students to raise their hands as high as they can. He then asks them to raise their hands even more. About 30-40% of them will continue to stretch a bit more which means they weren’t raising their hands as high as they could....

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