A May 2016 New York Times article about the state of the workplace in France is a good (if not exaggerated) example why associating work with wages has always been a bad idea.
According to the article, the French have been operating under a labor system that essentially guarantees workers a job for life by means of a permanent contract even if their employer is struggling to stay in business in a down economy.
If the worker’s job performance is sub-par, then the employer will find it difficult to fire him because of this contract (referred to as a “contrat à durée indéterminée” or C.D.I.). Rather than endure a labor battle where the law favors the employee, the boss will take the easier path of hiring someone to replace him while leaving the poor performer to languish in the hallways with no purpose at the company other than to collect a pay check.
This same article quotes Étienne Wasmer, a labor economist, as saying that “(b)asic facts of economic science are completely dismissed.”
Still, Mr. Wasmer’s statement highlights the relationship of having to be paid for one’s effort. Why can’t we just do the work because it needs to get done and not count on some form of external compensation for it? Why do we think that the payment of wages is the only form of motivation to make someone want to work?
Humans don’t consistently respond by being more productive for more pay. That’s not what motivates us. In fact, greater incentives can actually lead to worse performance!
The only job where people actually perform best is when you pay them just enough to take the issue of money off the table. After that, more money doesn’t do much to motivate workers.
What does this mean? I believe that paying people enough to take the issue of money off the table means they don’t need to worry about their hierarchy of needs. I can speak from experience that not being paid enough to meet the monthly demands of feeding myself, paying creditors and utility companies, covering commuting costs, etc. interferes with my ability to work. If I felt that I was paid enough, I could focus on my job and perform at my best.
Now just imagine if money didn’t even have to factor into the work one has chosen to do.
What if you knew that your hierarchy of needs was taken care of? What if you didn’t have to beg your boss for a raise? What if you didn’t need to prove yourself “worthy” of a pay increase?
I think you would actually get an honest day’s work done.
